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Happy Employees, Successful Organizations

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Happy Employees, Successful Organizations July 2015 Happy Employees, Successful Organizations Christine Pelosi, Information Specialist Only one in five employees is happy at work. Perhaps this isn’t shocking, but the repercussions of such unhappiness within organizations are. Unhappy employees are less engaged, less productive, more stressed, and more likely to be absent, leading to higher turnover rates and lost revenue. Luckily, putting employee happiness at the core of workplace culture positively affects the bottom line. When employees and sales people have positive mindsets, productivity increases by 31% and sales increase by 37%. Studies show that happier people are 12% more productive. According to Gallup, organizations with 9.3 engaged employees for every actively disengaged employee experienced 147% higher earnings per share compared to their competitors. On top of that, these organizations recovered from the recession much faster. The Russell Investment Group found that the “cumulative returns for the Best Companies [to Work For] between 1998 and 2009 were over 224% compared to just 42% (S&P 500) and 47% (Russell 3000). There are no other factors that can explain this significant, consistent, historical return on investment” other than having happy and engaged employees. Improving workplace happiness has many implications, including more productivity, greater job satisfaction, and the ability to attract and retain talent. Below are solutions organizations can implement to keep employees happy and increase the bottom line. 4A’s, 1065 Avenue of the Americas, 16th Floor New York, New York, 10018 212-682-2500 www.aaaa.org Page 2 Increase Engagement Engaged employees are important for organizations. They are more invested and feel more pride in the company. More importantly, engaged employees drive organizations forward during good times and bad by improving procedures and cultivating new ideas. Gallup uncovered insights into the disengaged worker and recommended ways organizations can promote engagement. Employee engagement is highest in the first six months after hiring. o Introduce mentorship programs for new hires that extend this honeymoon period. Also, organizations can pair new hires with a friend who can show them the ropes. Employees with a high school diploma or less are more likely to be engaged than those with a college degree. o Those with college degrees have higher expectations for work that often go unmet. Find out their needs and expectations. Millennials are the least engaged generation. o Ways to engage and retain this generation include focusing on mission and opportunities to learn and grow. Foster Camaraderie Shawn Riegsecker, Founder and CEO of Centro, says that employees who have a close, personal friend at work are 250% more happy on the job. Riegsecker points out that a high rate of turnover hurts the bottom line; losing an employee within 18 months, after spending time and money training them, is a financial loss. Fostering interpersonal work relationships encourages less turnover. The Lincoln Financial Group offers a few tips on how to best foster relationships in the workplace: Hire happy people. While some people are just happier in general, you can increase happiness among all employees by investing in the right people for your culture. Page 3 Create a positive workplace culture. A culture that prioritizes and cultivates friendships can go a long way. Encourage and provide opportunities for workplace socializing. Promoting face-to-face communications helps to build relationships. Let Them Thrive In a Harvard Business Review article, Gretchen Spreitzer and Christine Porath reported that employees who thrive in the workplace demonstrate: 16% better overall performance 125% less burnout 32% more commitment to the organization 46% more satisfaction with their jobs. To create a thriving culture and empower employees, Spreitzer and Porath recommend incorporating the four following components into the organization: Provide decision-making discretion. The ability to make decisions gives employees more control, more input, and more opportunities to learn, which can also increase customer satisfaction. Share information. Incorporating transparency into an organization allows employees to understand how their work fits into the larger mission and strategy. A survey from TINYPulse reports a strong correlation between employee happiness and transparency of management. Minimize incivility. Bad behavior and lack of respect among co-workers of all levels creates an uncomfortable workplace. Offer performance feedback. Offering direct feedback, even a simple “Thank You”, can often expose a person to more day-to-day positive emotional events, which increases happiness. According to a Kronos survey, 70% of employees felt a boost of satisfaction when they received positive feedback. Organizations that follow the above recommendations to increase engagement, foster workplace friendships, and give employees the chance to thrive will have the opportunity to improve the bottom line and reap the benefits of a happier workforce. .
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