Happiness at work: the economic impact

happiness at work illustration

Multiple factors can affect your performance at work to the point that you negatively impact your business. Happiness at work is one of them. The article encompasses all the details you need to know about the ingredients for making your business a happy place and, therefore, a complete success.

Economic Impacts of Happiness at Workplace

Better productivity

Starting by stating the research and facts, a study conducted by the University of Warwick shows that happier employees have 12 percent higher productivity than those who were not contended by their lives. This study shows the connection between productivity and happiness at work.

An unhappy person is not only a disadvantage for himself, but his sole mood might be responsible for making the people around saddened by his behavior. The circle moves around, affecting the productivity of many employees due to a single individual’s behavior. It might turn out to be a massive loss for the business.

Better employee retention

A successful business always has some loyal team players. These employees stand by the rough and tough patches encountered in the life of any company. But the critical factor here is whether you can retain such hardworking and dedicated people or not.

Training new employees is an extra expense for a newly established business. The key point to pick here is that your old employees will understand the nature of work and know the history of dealing with numerous clients. In that aspect, a happy place leads to more long-term employees and fewer onboarding costs.

Increased Creativity

A relaxed mind has better chances to develop exciting ideas for business. A successful business is about new and creative ideas collectively put together by employees having fresh minds. On the other hand, an unsatisfied mind always picks out the negativity in any presented idea as nothing seems appealing to the angry or frustrated person.

Fine Organization Performance

Happiness is linked with the stress levels of an individual. Lower the stress level, there are more chances of higher working potential. To boost an organization’s performance, the leaders should focus on the nitty-gritty of the needs of their employees. If too many employees are not contented and satisfied, the organization’s performance will decline instantly.

Performance of Team Leaders

Any business is run by various departments which different leaders lead. The team leaders are the company’s pistons. If these expert individuals are at peace by themselves, they can better guide their team members in the right direction.

Strategic planning

An economically established business will always look for the best strategic plan ready to be executed. But what only if the plan is not rightly made? It will undoubtedly impact the monetary gains of the business. On the other hand, a fine strategic sketch can be chalked out by fresh minds, satisfied with their life, and contended with the atmosphere of their workplace.

Less Absenteeism

The lazy nature of an individual can be overcome once the work is replaced by a job that aligns perfectly with the individual’s passion. After all, no one would want to avoid doing something they enjoy. A passionate person is more likely to be happy at work. So, passionate people are less prone to absenteeism.

Hence, it is a good idea to keep an eye on the attitude and behavior of employees to check their interest in the projects they are currently pursuing. If they are not happy with the nature of the job, ask them for a more suitable option to enhance their moods and productivity.

Guaranteed Career Success

We all love to be around happy people. A universal phenomenon holds that, like attracts like. In other words, a single happy individual attracts happy people, leading to efficient and fast-paced working. It enables employees’ success and enhances and multiplies the chances of a successful business.

The idea encompasses the concept that when an individual is happy, more people want to work with her. People are more willing to work with those individuals who have a relaxed and moderate mood. Happy people are better able to understand and manage their responsibilities. This will ensure career advancement. Also, the chain continues that happiness will spread out to other employees, making the whole workplace a better place.

What could managers do to improve happiness at work?

Managers are the foundational assets who put in efforts and give directions to ensure the business engine is running at the expected rate. So let’s hit the topic of what is der their control that can improve happiness at work.

Team building activities

A dynamic idea to increase the cooperation among the team members and amplify their teamwork is to arrange activities that make them interact. Sharing ideas and moments will leave a positive impact, leading the team towards a healthy working bond. Any team-building action would be welcome. For instance, it could be a simple dinner or lunch with the team members, going for a fun activity like bowling, a movie day, watching a football game, or any sports enjoyed by all.

Additional bonus on satisfactory performance

It is crucial to reward the employees for their commitment adequately. If happiness at work is genuinely cared for in an organization, decent wages should be necessary. Along with this, extra efforts should be rewarded with appropriate bonuses.

Occasional Encouragement

A happy employee makes a business flourish. Occasional encouragement and celebrating the achievements of the business together with the employee will be significant to uplift the mood of workers. The occasional motivation of employees by explicitly highlighting those who performed well will boost their mood and multiply their efforts. Encouragement is a booster for happiness. A sense of pride can make one expert in a field; it triggers the enthusiasm within ourselves to learn and expand more in knowledge.


Happiness at work is only achieved through the combined efforts of all stakeholders in a company. This seems paradoxical since we depend on others to obtain a personal benefit. This is probably why it seems so difficult to achieve, as evidenced by the great resignation. No matter your position in your company, you have your role to play to be happy at work.