Happy Employees are 12% More Productive: Why and How?
Happy Employees are 12% More Productive: Why and How?
April 2023

Several studies have shown that happy employees are more productive and can increase sales by up to 150%. In fact, happy employees are also able to stay in their jobs four times longer than unhappy employees. From this, it becomes increasingly clear that having happy employees is not a bonus, but a necessity for every successful workplace. Productivity, motivation, dedication, and retention all depend on the happiness index of employees.

This time, Mindtera will summarize why and how happy employees can be more productive.

Why and How Happy Employees are More Productive?

1. Happy people are more loyal

Productivity in the workplace depends on how to maintain a low turnover rate in the company. Low turnover means that management doesn't have to recruit and train new employees periodically. If a company can retain its existing employees, it indirectly saves time and cost.

Happy employees do not have the urge to resign from their jobs. If they are happy with their work or work environment, why would they want to resign? That's why turnover will be low when employees are happy.

Low turnover affects workplace productivity in the following ways:

  • Projects will be completed faster.
  • Produce better quality work, with fewer mistakes.
  • Retain experienced employees.
  • Build employee loyalty and morale.
  • Trust and team relationships can be established better.

2. Happy Employees are Better at Seeing Opportunities

Agility is one of the most sought-after qualities in employees responsible for helping organizational success in VUCA (Volatility, Uncertainty, Complexity, Ambiguity) situations. Because happier employees feel supported and more confident, they are more willing to take advantage of any new opportunities.

They generally have a more optimistic view of their work, which enables them to find exploitable opportunities. With a combination of high self-confidence, they are also always ready to seize opportunities and push themselves to achieve new opportunities.

3. Happy Employees Have Stronger Interpersonal Skills

Interacting with happier employees is more pleasant for clients, managers, and co-workers. Their stronger interpersonal skills make them a positive contributing team member in every collaboration. They are also more open to feedback because their positive outlook makes them confident in using constructive feedback for further improvement.

Moreover, when a company creates an environment that encourages employees to be more engaged, they will indirectly represent the company far more authentically and positively than advertising material. Reports from Harvard Business Review state that engaged employees can even increase sales by around 150%. That is, happy employees will make clients happy too.

4. Happy Employees are Healthier

Happier employees feel better mentally and physically. This allows them to perform their best in everything they do and also tends to take fewer sick days.

With most companies today prioritizing mental health, creating a happier work environment can be the best way to maintain employee health and reduce costs associated with recovering from illness.

Now, Achieve a Sustainable Workforce with Mindtera

Mindtera is a workforce analytics and advisory that helps leaders and organizations build a sustainable workforce for 143 million workers in Indonesia. Mindtera is here to #EmpowerPeople with Measurable, ensuring the development of employees, organizations, and future businesses based on effective and impactful insights, Humankind, an adaptive cultural approach that will guide behavioral transformations; both for individuals and organizations, for sustained improvement, and Impactful, providing direct and indirect positive impacts in every activation that inspires employees.

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