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WHITE PAPER Every company -whether it is trying to build one or not -has aculture. really In matters. this paper, will we explore why. culture employees love and don’t want to leave, employee happiness is that the metric engagement, decrease , and drive it comes recruitment. But when to creating a HR encounter leaders alot of advice about how to manage increase culture—to with an all-hands meeting with the CEO or snacks with free in the break room?” At this point, you might thinking: be “Wait… employee happiness? Shouldn’t culture start answer is short byThe concentrating on employee happiness. resources of aGoogle still create amagnetic culture? alotOr of help? How can companies that might lack the culture want. we What if your culture some needs help? But the culture let’s face it, have we isn’t always the applications day. for every only 2% and an Google estimated gets unsolicited 7,000 is iconic for renowned its culture, has aturnover rate of because applicants are clamoring to in. get Intel, which because employees don’t want to leave agreat culture. It is the key to recruitment have,we from to customer profitability. to service It is the key to retention organizational success and dismal failure. business It just impacts about every metric CultureAnd Agreat matters. culture can make the critical differencebetween applications for jobs every day. every jobs for applications of only rate iconic culture, has turnover a Intel, its for isrenowned which an estimated estimated an 2% and Google gets gets Google and 7,000

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The Science of Happiness // 2 Happ y em 1 p lo y e e

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e X si le to ck le ss ta like of of The ke av research by posted the Wall Street Journal and Institute the iOpener How know do we this? increasing An of research, body for one thing. Consider this recent great. culture make a what are employees Happy of people (your employees)of people happy. arePerks just the manifestation of what makes aparticular group Work™. grow from But perks culture, not the other way around. what think we are often think of we when of Great Places to soda. These trappings outward of companies with great culture like ,fringefunky benefits— onsite massages free and It is tempting for many to think of company culture in terms of involvement but neither alone of will execs, you get agreat culture. cultureA good may have and needs it some certainly perks, Too think we often, about culture ways: in one of two powerful way to impact yourpowerful . Concentrating on making youremployees efforts happy is the most and direct happiness and how to increase directly It it. all leads to one conclusion: Unlike culture itself, have we hard numbers on the science of employee employees: ly

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Likewise, tend leaders to culture see in terms goals setting of things can they do—like

Culture is from the top dictated Culture is the sum of your perks Are 186% more likely to recommend their to afriend more strongly 98% withIdentify the values of their organization moreAre likely 58% to go out of the way to help their colleagues Spend 65% more time feeling energized Believe are they achieving their potential as much 2x Stay as long twice in their jobs as their least happy colleagues Company Culture and core values. Their participation of is the picture, and part trust an important matter how greatmatter your mission is statement cleaning. or your how free dry they arethey stomping around complaining… well, your culture probably stinks—no in is leaders one of the key drivers cannot of a engagement, dictate but execs S It is your employees control who your culture. are they When happy, it thrives. If great culture. can only They lay the groundwork for agreat culture to take hold. e c ret S auc e

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S unique to your company, your and industry your employees. orsometimes sometimes aperk, it is just simple common sense. Some will methods be as discovering what workers will respond to and doing Sometimes it. this may a policy, be Luckily, happy employees are never entirely beyond any company’s grasp. It’s as simple course, company not every is aglamorous consumer brand or selling product. afeel-good equated withare innovation often and risk-taking and gobs of money to spend. of And or JetBlue’s or Intuit’s is beyond your company’s grasp. Great culture and happy employees an HRAs or senior exec leader, you may have believed culture aworld-class like Google’s dogo we about creatingSo how exactly this happy workforce? S e happ

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. N S T IT IV universal. are Others ITY These universal drivers of employee happiness fall into three categories: alignment, positivity, and progress. from the bottom up.from the bottom Everything employees need—and everything everything employeesEverything need—and swell ofswell happiness that will grow your culture By pursuingBy them, you can create aground- these three things. and talent—rolls up keep the into best one of toyou build need akiller culture that will attract

The Science of Happiness // 4 1.  5.  4.  3.  2. F don’t who ire people to -person fit to job-person Pay closer attention Pay attention closer fit your culture fit your flexibility into policies your flexibility and trust more Cultivate meaning your in values greater Help employees find a bigger picture bigger a into your company fits how workers Show i Bu Great Ways to ld a l i gnm Ge between happiness andbetween meaning,” says Jennifer Aaker from the Stanford Graduate School belonging, meaning.and effectiveness “New research shows there strongis a correlation Allowing employees to how see fit they into the larger picture activates their sense of the employee’s vision,between goals and values, and those of the organization. person-company There but a bea fundamentalgood fit. fit, must person-job compatibility Alignment is the first goal foremployee happiness. meansIt you mustensure not only a good component in creating ahappy workenvironment.” “Having programs that allow managers toemployees offer beaflexibility can key CareerBliss CEO Heidi Golledge, is in akey determining factor employee happiness. companies with the biggest leaps in employee happiness. Work-life balance, says and personal lives, are they consistently happier. Each year, CareerBliss at the looks ofAnd course must we not forget flexibility.employees When are able align their work t e n

i t n to and in reduction a75% turnover. a60% dropwork experienced in focused on the meaning and purpose in their found thatwho University people of Alberta by conducted researchersA study at the current job provides with them meaning. employers, and saying only 48% that their feeling reporting valuedworldwide by their of just employees disposable—with 44% byconducted Kelly OCG, many employees directionless feel and Meaning is now more than important ever. According to a2012 study you think will make you happy.” predictor ofyou happiness is actually abetter than many other things of Business. having “In fact, ameaningful impact on the worldaround a key way to reinforce this, daily. of their lives will cultivate happier employees, says Lim, and is feedback them. Aligning with their people passions both on the job and in the rest regular and ongoing to feedback ensure stays aligned that everyone with Fast values Company as Lim critical, cited co-owned article, along with daily journey,” says James Key Lim, an early leader at Zappos. In arecent Feedback is another of element alignment. important “Happiness is a al ig nmen 2

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75% reduction in turnover in 75% reduction absenteeism in drop a experienced work their in meaning purpose and the on People focused who 60% 60% and a a and .

The Science of Happiness // 5 3. O 2. O 1.  4. O 5. E and teamand successes personal Broadcast to express gratitude to express communication lines communication emotional support emotional ncourage employees employees ncourage pen up multidirectional multidirectional up pen ffer fast, positive feedback feedback positive fast, ffer ffer resources and and resources ffer Bu Great Ways to i ld p o siti Acc service, needed more breaks, and needed sawservice, amore than 10% decline in their productivity. call center foundat aFortune 500 that reps were in who bad moods had worse customer which or mood, leads to “affect” an overallpositive climate for companies.One 2011 study Happy employees are positive employees. have They what scientists to refer as apositive feel that theirfeel happiness to at their matters work employers.” regularlypeople acknowledgement and get praise for ajob well done, and people where “A is far likelier to ahappy be place policies when are in place to ensure that Says Gretchen Rubin, author of York the New Times best-seller Happiness The Project: improving employee performance. Spring 2013 94% HR said leaders Report, positive has feedback a greater impact on are doing rather right, than being told what are they doing wrong. In our SHRM Globoforce at same Tracker Mood found we that 89% report, of employees to prefer told be what they Overall emphasis on positive is feedback another critical of element employee happiness. In v it y e n t of and: PsyCap capital. significant Researchers report relationships highlevels between Happy employees also have high of PsyCap, reserves or psychological satisfaction, and alleviated depressive symptoms.” ofof gratitude writing significantly letters increased happines and life to showpeople gratitude. at Astudy Kent State examined the effects Researchers of have PsyCap bigin seen boosts positivity by encouraging more likely themselves to identify as highly engaged. were enabled topeople recognize were they for 107% work, good peers 2013 Globoforce Workforce Tracker Mood found we that when report, vehicle for this— can also pay dividends in the workplace. In our Spring Encouraging gratitude and appreciation—and recognition is the ideal • • • • • u A fall in undesirable employee behaviors. A decline in undesirable employee attitudes High marks in multiple measures of performance A rise in desirable employee behaviors A rise in desirable employee attitudes ate he p the o siti 8 ve 6

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The Science of Happiness // 6 5.  4. R 3. O 2.  1.  of new and existing skills of existing new and organizational goals achievable and clear,Set measurable fit into the bigger picture the intobigger fit employeesShow how they and effort and Reward excellence espect individualism espect ffer training for mastery mastery for training ffer i Bu Great Ways to ld p Rogress progress p Kee with acommitment to facilitating relationship-building across all levels and departments.” on astrong foundation and proactive of effective communication and recognition, along Michael Civello at Plum sums Benefits it well:up “Increasingemployee happiness is based finally,And it is mandatory to rewardemployees for their progress and achievements. to keep your culture on track. are meant for the track or simply single important contributors, is akey way influence theirFindingpeers. they and growingemployees—whether these important arewho your ‘cultural energizers’—who drive the progress of your organization and opportunities: growth to employee create is the top global driver of and recommends that employers work 2012Aon Hewitt’s Global Engagement found that concern Report for opportunities career survey,after employees consistently cite development career opportunities as atop concern. somewhere andgetting accomplishing something in our and careers in our lives. In survey Progress is the third and final way developto happyemployees. We all want likefeel to we are t wheels of of wheels he Another important piece ofAnother important the puzzle is those to employees identify opportunities. goals with them, as well as companies providing growth taking the time to discuss employees’ individual for each employee, so this goal relies on managers Development and progress is differently defined sustain asuccessful path.” career career. Employees want to learn, develop and mentorship programs, which will help grow their company provides acomprehensive program and employees will take a job for if a lower the big impact on overall employee happiness. Often “We advancement career see programs have a According to Career Bliss’ CEO Heidi Gollege: assignments, cross-functional training, etc. businesssupports moves, special needs—lateral aroundre-navigate expectations development that or less traditional opportunities and growth help employees enrichment opportunities… Employers should develop more Employees are increasingly looking to their current employers for job i n mo n ti on creative 9

The Science of Happiness // 7 year for the last year last the for every has fallen happiness worker that shows board R esearch from the conference conference the from esearch 25 years H years. tank. Their research shows that worker happiness year has for the last fallen every 25 Employee happiness is not acakewalk. According to the Conference Board, it is in the ow t ow 10 Companies to put into need place programs that draw out these principles of their goals. appreciatedbe and away to rewarded be for the progress make they toward companypractice values, offer continuouspositive feedback, appreciate and a way foremployeesunderstand and better to these objectives—offering A strategic recognition program on achieving is agreat start all three of and build akiller culture. alignment, positivity, and progress that can move for happiness the needle o ge t rolling

The Science of Happiness // 8 SOURCES 1http://www.iopenerinstitute.com/what-are-the-financial-benefits.aspx

2http://www.fastcompany.com/3004595/secrets-americas-happiest-companies

3http://www.kellyocg.com/Knowledge/Whitepaper_Content/Happiness_and_Meaning_at_Work_White_Paper/

4http://www.sciencedaily.com/releases/2008/11/081126122317.htm

5http://online.wsj.com/article/SB10001424052970203388804576612943738516996.html

6http://onlinelibrary.wiley.com/doi/10.1002/hrdq.20070/abstract

7http://www.kent.edu/research/newsdetail.cfm?newsitem=AEC1631B-E717-E289-CAF38E98A14FF8B4

8http://www.happiness-project.com/

9http://quickbase.intuit.com/blog/2013/01/04/4-strategies-for-happier-employees/#sthash.sV0Q8MQn.dpuf

10http://www.fastcompany.com/1835578/sharp-drop-worker-happiness-and-what-your-company-can-do-about-it

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