Ideas for creating happy employees
Last updated: June 4, 2025 at 16:15 pm
Happy employees are crucial to the success of any organisation. Studies have shown that happy employees are more productive, more engaged, and more loyal to their employers. For instance, a study by Oxford University’s Saïd Business School found that happy workers are 13% more productive than their unhappy counterparts. This increased productivity can lead to significant improvements in overall business performance.
Moreover, Gallup’s State of the Global Workplace report highlights that organisations with high employee engagement experience 21% higher profitability. This is because engaged and happy employees tend to contribute more effectively to their teams, deliver better customer service, and are more innovative in their work.
Additionally, happy employees are less likely to leave the company, reducing turnover costs. Research from the Society for Human Resource Management (SHRM) suggests that replacing an employee can cost a company 6 to 9 months of that employee’s salary. By fostering a positive work environment, companies can reduce turnover and save on these costs.
Ideas for creating happy employees
Atmosphere: Foster a pleasant workplace atmosphere in which employees feel valued and supported.
Work-Life Balance: Encourage work-life balance by providing flexible work schedules and encouraging employees to take time off when needed.
Employee Recognition: Reward and publicly recognise employees for their hard work and contributions.
Career Development: Provide chances for career development, including as training and mentoring, to encourage employee growth and development.
Celebrates diversity: Foster an inclusive culture that celebrates diversity and promotes open communication and collaboration.
Fair remuneration: Provide competitive remuneration and benefit packages in line with industry standards.
Workplace Safety and Health: Ensure that the workplace is safe and healthy by implementing correct safety protocols and providing access to health and wellness programmes.
Form strong relationships: Encourage team-building activities that help employees form strong relationships and collaborate more successfully.
Employee Feedback: Allow for regular employee feedback and actively listen to employee problems and suggestions.
Employee Empowerment: Empower employees by giving them autonomy and decision-making authority as needed.
Make great leaders: Encourage good leadership practises that foster trust, respect, and support for employees.
Communication: Encourage employee engagement through frequent communication, feedback, and chances for participation in decision-making.
Workforce Diversity: Encourage a varied and inclusive workforce that values different points of view and backgrounds.
Social relations: Create social activities for everyone and between departments. Not just “Friday bar,” but social activities like going for a walk, going out for a coffee, or visiting a business. Play cards together. Competitions.
Work atmosphere: Create a welcoming and comfortable work atmosphere by using adequate lighting, ergonomic furniture, and providing access to natural light and greenery.
Workforce Wellness: Provide wellness programmes and initiatives that promote physical, emotional, and mental well-being among employees.
Related information
The importance of having happy employees is well-supported by research. For example, a study conducted by Oxford University’s Saïd Business School in 2019 found that happier employees are 13% more productive than their less happy counterparts. This study examined the connection between worker happiness and productivity within a large telecoms company. You can find more details here: https://www.sbs.ox.ac.uk/news/happy-workers-13-more-productive.
Additionally, Gallup’s State of the Global Workplace report from 2023 shows that companies with highly engaged employees see 21% higher profitability. The report provides insights into how employee happiness and engagement directly correlate with better business outcomes. The full report is available here: https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx.
Moreover, research from the Society for Human Resource Management (SHRM) in 2020 underscores the financial impact of employee turnover. According to SHRM, replacing an employee can cost a company around 6 to 9 months of that employee’s salary, making it crucial to maintain a positive work environment to reduce turnover. More information can be accessed here: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingforretention.aspx.