As a business owner, you probably (hopefully) want to see your employees happy. But did you know employee happiness matters for your business’s bottom line, too? Joy is part of all aspects of our work at MBD Marketing & Events. Here are seven reasons employee satisfaction is crucial for business success.
Happy employees are more productive
Happy employees are 12% more productive than their dissatisfied counterparts (Snacknation). Happiness is an invigorating, motivating emotion. In fact, employee satisfaction has a greater impact on performance than financial incentives. In fact, nine out of 10 employees would trade a percentage of their salary for “meaningful work” and positive company culture (Harvard Business Review).
Research shows that people who are happy at work are more collaborative, more creative, and better at problem-solving. (Sound like a team you know?) Coworkers who are happy in the workplace and who get along well are more likely to work effectively to achieve common goals.
Greater happiness = greater sales
Like with productivity, greater happiness translates to greater sales - by 37% (Gallup). Not only have we determined that engaged employees are more productive, but that positive attitude resonates with customers. Potential customers or clients are much more likely to commit when interacting with upbeat salespeople.
Companies with happy employees outperform their competition
Not surprisingly, companies with happy employees, better productivity, and greater sales outperform their competition in all areas. Fortune’s “100 Best Companies to Work For” enjoyed a raise in stock prices of 14% per year from 1998-2005, compared to 6% for the overall market (Forbes).
Positive workplace culture creates a beneficial snowball effect by creating happier employees who in turn contribute to a better workplace climate. The Harvard Business Review notes, “Decades of data have confirmed that higher employee engagement, or the strength of the mental and emotional connection an employee feels toward their workplace, has many positive benefits — including reduced stress, improved health and job satisfaction, as well as increased productivity, job retention, and profitability.”
Engaged workers are less likely to look for new employment
Happy employees want to stay with their companies. Losing an employee costs a company 1.5 to two times that employee’s salary (BuiltIn) and leads to decreased productivity and decreased employee morale.
In addition, happy employees attract top talent. The most in-demand employees in any field have their pick of companies to work for, and company culture is the top priority for most workers. High-quality employees attract other high-quality workers.
Happy workers have fewer accidents
Satisfied employees produce better quality products and services and have 50% fewer workplace accidents (Lorman). Happiness leads to higher engagement, which leads to greater focus and motivation, and in turn, fewer mistakes at work. Employees who are worried, stressed, or distracted at work are at the highest risk for quality and safety mishaps.
Happy employees take fewer sick days
Sick days are a business expense, and employees who report being happy at work take 10 times fewer than average (iSmartRecruit). The Integrated Benefits Institute found in 2019 that sick days cost employers an average of $3,900 per employee in lost productivity. When unhappiness in the workplace increases, so do sick days.
What happens when employees are unhappy at work?
A 2013 State of the American Workplace Report estimated that actively disengaged workers cost the U.S. $450-550 billion per year (CBS News). Here are some other alarming statistics about employees who are unhappy at work:
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