It’s highly beneficial for companies to create a happy, healthy work environment for their employees. Losing employees can be very costly. In fact, studies have shown that when a management-level employee quits their job, it can cost the company an equivalent of the employee’s salary for 18 months. The loss covers the time the position is vacant and the expenses involved in hiring and training a replacement.
Employee perks such as benefits and bonuses can add up, but they are usually worth it in helping to foster a satisfied, engaged workforce. Content employees are not only more likely to stay put, but they also tend to perform better on the job.
Here are a few specific benefits of having happy employees:
- Greater creativity – Studies have shown that happy employees have higher levels of creativity than unhappy ones. Being happy can free up the brain, allowing for increased mental flexibility and imagination.
- Better analytical abilities – Happy people often make better judgments. Studies have shown that an elevated mood primes our brains to process information more adeptly.
- Stronger problem solving – Employees are better equipped to handle delicate and tricky situations when they are cheerful. On-the-job difficulties engender some degree of fear and nervousness in most of humanity, but satisfied people are able to return to their original mood faster.
- Reduced costs – Happy employees are more productive and take less sick leave than unhappy employees, thus improving the bottom line.
- More closed deals – Happy employees negotiate better than their unhappy counterparts. The expression of positive emotions can be an effective bargaining tool.
- Better customer service – Research has shown that a retail business manned by cheery employees makes more sales than those manned by glummer associates. When employees’ morale is high, customer interactions reflect it.
As an employer, you can spend time and money on many aspects of your business, but your workforce may be your best investment of all. Consider conducting regular interviews with your employees to give and receive feedback. Take proactive steps to address employees’ concerns and create a fulfilling work environment.