Did you know? Happy employees are 12% more productive

Happy business people laughing against white background
Companies and HR professionals have debunked the general perception that higher salaries equate to increased productivity of employees. They have also accepted that happy workers yield better output. But a study by economics professors from the University of Warwick gives scientific support to these assumptions.

The study consisted of randomly selected 700+ employees who went through different experiments. They were shown a 10-minute comedy video or given drinks, chocolates and snacks. After these “happiness shocks,” their output was measured and it showed a 12 % increase in productivity. Another experiment also showed that workers with lowered productivity had recently undergone personal difficulties, such as a death in the family, illness or divorce. This decreased productivity – unhappiness link could last as long as two years.

This research should prod companies to look into work practices that generate employee contentment.  If an increase in work rate and efficiency will benefit their bottom line, it’s only practical to find ways to boost their happiness. Google knows this and has provided its mostly young-ish employees with gyms, sports courts, free food and slides to go from one floor to another, among other perks that cater to employees’ satisfaction. It’s no secret that productivity rose an astonishing 37%, even with their workers who were chosen for being among the best in their field.

But the question on smaller companies’ minds is, what can they do to get a similar effect like Google, at a much lesser budget? Here are some tips that small and medium enterprises can adopt to raise workers’ morale without breaking the budget:

Acknowledge your employees

Everyone appreciates being recognized for their skills and contribution to the achievement of the company’s goals. By using each employee’s unique capabilities and recognizing their talents, you promote their engagement and cultivate their loyalty, all leading to more and better output.

Acknowledgment also means making employees feel that you care for them. Show genuine concern for troubles they may be experiencing. A family law attorney says that marital problems are very stressful and can diminish a person’s abilities and efficiency. A compassionate employer will allow some leeway for employees in difficult situations and give support without sacrificing the company’s goals.

Provide opportunities for professional advancement

Employees who are given the opportunity to enhance their skills and expand their contribution to the company are happier and therefore, more productive. As an employer, you can do this by subsidizing advanced education, sending them on company-paid seminars and trainings and letting them join internal leadership programs.

Adopt a flexible work model

The 21st century has seen the emergence of the work-life fit approach that suits each employee’s needs. Companies that have done away with the nine-to-five culture report an increase in productivity by as much as 30% because they have more satisfied workers. A flexible work model still requires the employee to render a forty-hour workweek, accomplish set tasks and meet deadlines. Technology has made work-from-home possible or there’s the compressed workweek option, giving workers more time for their personal commitments and interests.

Align employees’ goals to business goals

People work harder and better when they know what their goal is. From the lowest rung of the corporate ladder to the top, goal setting is important to give each employee a sense of purpose and meaning to their daily tasks. Set objectives that are clearly defined and achievable within a specified time frame to enable workers to monitor their progress. Finding meaning in one’s work gives the employee a sense of direction and value, and raises efficiency.

Finally, happiness in the workplace is not totally dependent on the company. Shawn Achor of Harvard says that meditation, finding three things to be grateful for everyday and acts of kindness can rewire the brain to be happier and achieve more success at work.