When employees are satisfied, the entire business will benefit. Most businesses don’t understand the correlation between employee happiness and their productivity, and even fewer know how to achieve this.
A study by economists at the University of Warwick found that happy employees were 12% more productive, while dissatisfied workers proved 10% less productive. If employees feel bored and undervalued, it will affect their performance.
Many companies still feel that rigid rules and a stern approach is the way to go, but this isn’t the best approach. You can still have happy employees in a structured work environment, as long as you understand how to make your employees happy. Managers and executives might feel that employee incentives are a waste of time and money, but the benefits and results will extend productivity in the long run and serve your company’s bottom line.
Companies that invest in their employees’ happiness will see results
Companies like Google see higher productivity in employees, because they invest in their employees’ wellbeing and happiness. According to the University of Warwick study, organizations that invested in employee support and satisfaction were more likely to succeed in generating happier workers. Employee satisfaction rose 37% as a result of staff incentives at Google. If employees are happier, they’ll feel more focused and motivated and they’ll use their time at work more effectively, which means they’ll get more done without sacrificing quality.
Here’s how contentment in the workplace can affect staff and your business:
Employees want to stay and succeed within the company
Happy employees won’t want to leave and find a new job elsewhere. If they have a job that makes them happy, they’ll want to stick around. The satisfaction and motivation will drive them to be more successful and work harder for your company.
They’ll refer others to your company
If your employees are satisfied, they’ll be eager to refer business or potential employees to the company. They’re more likely to refer high caliber candidates, as they wouldn’t want just anyone to be a part of your company. According to a study done by Stanford, employees hired through referrals have increased productivity, lower turnover and reduced screening costs – so it’s a win-win for your business.
Increased productivity and output
An increase in creativity, productivity, and overall quality have all been linked to employee satisfaction. Happier employees are more efficient and productive, and they also care more about what they’re doing. According to Snack Nation, companies with happy employees outperform the competition by 20%.
Now that you have an understanding of the correlation between employee satisfaction and productivity, you can invest more in employee support. Depending on your workplace setup, there are many things you can do to increase employee satisfaction. FBC Services offer benefits consulting and can help you come up with a solution that will suit all of your employees. If you’d like to know more about how to boost employee satisfaction, download our infographic.