GDP Blog

Happy Workers Are More Productive

Posted by Veronica Barrientes

Aug 12, 2014 4:38:00 PM

In the world of business and economics, companies are increasingly taking action to increase production.  The investment of employees is becoming more and more valuable.  Turnover is a risk not worth investing in this day in age with the current recession and inflation to follow.  It took a certain economics class and to live the experience of unhappy work life for me to figure out the value of a happy employee and the relation it has with productivity and retention.

Our mind and bodies as workers, owners, investors, and even as consumers are on overload.  We spend most of our life in production of something whether it is a homemaker or income producer.  All producers work seven days a week, 365 days a year. 


Yes, every day of our life we are producing not only are we producing at work we are also producing at home, but the highest production period is during work hours where we spend most of our day.  As a worker we are paid to produce but there are days more challenging than others do to redundancy, unorganized procedures and processes, hostile work environments, personal concerns, the list could be quite lengthy as you know. The purpose of any investment is to measure its return, correct?  There are four different scientific studies in the Journal of Labor Economics that prove happy employees are about 12% more productive.

To most 12% may not seem like much but think about it, if you have an employee producing on an average of 80% efficiency, happiness will bring them up to 92% efficiency.  The closer to 100% the better return on your investment, wouldn’t you say?  For workers, a positive trend is valued when employers care about the happiness and wellness of their employees. There is a payoff for the investor or leader within an organization promoting a positive trend will create retention and loyalty.  Employees who have left one job for another has very little to do with how much their compensation is, at least for most workers their decision to leave revolves around the work environment and happiness they sense. To focus on happiness will change the culture that in turn changes the atmosphere.  There are many ways to increase happiness without making huge investments. Such as, a benefits fair to educate the employees on wellness, learning good habits, how to effectively use their health benefits; in turn it becomes part of the benefits package.  The investor will also reap the benefit from this employee perk with a decrease in expenses, but that is a topic for you and you advisor.  Knowledge is valuable and having it makes us feel good about ourselves.  Affirmation is another avenue to happy employees an embedded habit of compliments, encouragement, and direction adds a sense of value. The value brings confidence into their mentality to reflect with a positive attitude and increased quality of production.  After reaping from the benefits of higher production and retention, your investment should include a special fund for increasing happy employees. 

Invest in things like flexible schedules, grazing options, sleeping pods, a TV room, or even a yoga room for some ideas.  Some indicators there maybe something missing in our work life:

1. Stressed or unhappy investors

2. Employee's highlight problems rather than bringing solutions

3. High turnover

4. A business does not evolve. 

I say take a hold of the investment and increase revenue and retention through higher productivity and the happiness of the employees.  The connection between a happy worker, higher productivity, quality of production, and revenue operates like a flow chart.  Just like at home when a loved one does something nice for you in return; they get extra love from you and with something nice done in return; if this becomes a focus it can become a never ending cycle.  Passion for happiness is nothing to be ashamed of; it has become my passion and boy does it pay off.  Good luck with your happy seeking; it's not hard to find.

Topics: Employee Benefits

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