How to Create a Happy Workplace [Complete Guide]

While it would seem like work shouldn’t have anything to do with fun or happiness, studies have shown the correlation between the two. The results have shown that the impact of happiness at work doesn’t just improve employee productivity but it also helps shape a positive company culture. 

However, an international survey conducted by Ipsos showed that 85% of workers are dissatisfied at their work. With this, you can have an idea of just how prevalent unhappy workplaces are. 

Moreover, according to Gallup, just 30% of the American workforce are engaged. This means that most employees are disengaged at work. There are a lot of factors that affect employee engagement but it can be simplified to happiness at work.

Why Having a Happy Workplace Matters

To start, happiness in general has a positive impact on the mental, physical and emotional health of an individual. This extends to the workplace. A lot of benefits can be gained from having a happy workplace. These are but just some of them:

  • Improved productivity
  • Improved performance
  • Encourages creativity
  • Better employee retention
  • Better resilience to stress
  • Better overall employee health
  • Less mistakes
  • Less absenteeism

According to Positive Psychology, happy employees are needed for a company to grow at a constant pace. This is why businesses with happy employees thrive. Since employees are the ones who drive the company to move forward, it is crucial that the leaders make them feel satisfied and happy with their jobs.

While happy and engaged employees are the ones that spark ideal change, disengaged employees are detrimental to an organization. According to the Harvard Business Review Report, disengaged employees are costing companies $450 to $550 billion each year. 

Moreover, disengaged employees are more prone to leaving their jobs and committing errors. In a study conducted by the Queens School of Business and Gallup, these are what they found out about disengaged workers:

  1. Disengaged workers make 60% more errors and defects.
  2. They cause 49% more accidents
  3. They have 37% higher absenteeism 

The importance of employee engagement and happiness shouldn’t be looked over. If it’s not creating a happy workplace that drives you, go for trying not to have disengaged employees. 

How to Create a Happy Workplace

Creating a happy workplace sounds simple but it takes a lot of work and dedication. The leader plays a huge role in transforming the workplace. Before you decide on creating a happier workplace, be sure that you have good leaders in your organization who are capable of the undertaking.

Here are ways on how you can create a happy workplace:

Promote Work-life Balance

Work-life balance has been a hot topic. The younger generation value work-life balance and this has been one of their major determinants when looking for a job. In other words, a lot of people are seeking and are willing to leave their current jobs to work for companies that do promote work-life balance.

Promoting and practicing work-life balance ease off work stress. Moreover, having better work-life balance lets workers be more fulfilled at their job as they get to earn a living while also getting to enjoy their personal lives. 

Here are different ways on how you can promote work-life balance:

  1. Offer flexible work schedules
  2. Support telecommuting
  3. Bringing home the work
  4. Offer remote working
  5. Lead by example

Recognize and Reward Hard Work

One of the main reasons why workers leave their job is because of a lack of recognition. This is according to Gallup. Recognition and lack thereof affects employees in a lot of ways. Here are statistical data concerning employee recognition:

  • 58% of employees mentioned that giving recognition is how leaders can improve employee engagement. – Elwood Staffing
  • 69% of workers said they will worker harder if they were better appreciated. – Socialcast
  • Just 14% of organizations provide managers with tools for recognition and rewards. – Aberdeen
  • Organizations with recognition programs that improve employee engagement have 31% lower voluntary turnover. – Bersin
  • 87% of recognition programs are focused on tenure. – Deloitte
  • 28% of the most memorable recognition are from the manager. – Gallup

According to Gallup, “65% of people received no recognition for good work in their workplaces.” How have you been to your employees? If you want to experience the benefits of a happy workplace, you need to recognize the efforts of your employees.

Listen and Act on Employee Concerns

According to Inc, 1 out of 4 employees report that conflicts happen due to the lack of proper communication. It is important to have good communication with your employees. Having open communication can help make your employees feel that they are valued.

It’s also important to resolve employee conflicts before they spiral out of control. Employee conflicts can be detrimental as it can be poison to productivity and your organization can face expensive legal charges.

You can learn how to change a toxic workplace by listening to your employees and resolving their conflicts. By knowing what their needs are and taking actions, you gain the trust of your workforce and this helps create a positive company culture. 

Creating a happy workplace benefits both the employer and the employees. It’s an effective strategy that top companies practice and it’s what separates businesses that stand the test of time and those that do not. Create a happy workplace and reap the benefits of having a joyous working environment.