Whistle While You Work: Happy employees are critical to organizational success.
Author: Galia Myron
Date: February 11, 2009
Happy employees make for a successful business, says research out of Kansas State University which examined the relationship between employee well-being and profits. Employee happiness leads to higher levels of job satisfaction, greater productivity, and lower turnover-meaning that the happier the staff, the likelier an organization's success, study author Thomas Wright, professor of management at Kansas State found.
"The benefits of a psychologically well work force are quite consequential to employers, especially so in our highly troubled economic environment," Wright said in a public statement. "Simply put, psychologically well employees are better performers. Since higher employee performance is inextricably tied to an organization's bottom line, employee well-being can play a key role in establishing a competitive advantage."
Joyful employees are not only good for the organization, they also benefit as individuals, the study shows. Psychologically well employees-meaning those who exhibit characteristics like joy and interest over apathy and sadness, according to Wright-are more likely to demonstrate superior decision-making skills and engage in more positive interpersonal behavior, therefore earning higher wages. Wright also found that these employees enjoy better cardiovascular health.
While reports that happy employees bring greater profits is no surprise to organizational experts, in these difficult economic times, such research is notable, as companies are losing profits and people.
The connection between content workers and higher profits is "perfectly logical," says Gail S. Bower, president of Bower and Co. Consulting, LLC, a Philadelphia-based firm specializing in raising the visibility, revenue, and impact of non-profit organizations (www.GailBower.com). She adds that further investigation on how to define several factors of the study would be beneficial to organizations.
"I think the quantification of wellness is what both employers and employees should pay attention to. I'd be curious about some other factors: how to quantify the impact on individuals to be around unwell co-workers; how to quantify the energy and effort generated to work around the unwell co-workers; and how the research proposes to qualify 'well' employees through the interview process," she says.
Liz Bywater, PhD, president of Bywater Consulting Group, LLC, agrees that the study results make "perfect sense." Specializing in behavioral change, Bywater Consulting Group uses creative techniques to help organizations optimize performance (http://www.BywaterConsultingGroup.com).
"Employees are, first and foremost, human beings," Bywater says. "People are complex and there is just no separating emotional well being from work performance."
Bower observes the impact of happiness and unhappiness on group dynamics in her business all the time. Working with non-profit organizations and event and festival planning, the benefits of positive individuals and consequences of negative employees indicate a clear impact on the organization as a whole, she notes.
"Nonprofit organizations tend to be small, lean operations. Everyone contributes a great deal to the overall operation. As you can imagine, when one spoke of the wheel doesn't work properly, it certainly has a negative impact on everyone, especially when that one person is the executive director or president," Bower says.
These dynamics are most apparent in event and festival production, she says. "I see this stress and dysfunction most vividly in the production of events or festivals. Event leaders need to be sharp, quick-thinking, and solution-oriented individuals. Events are stressful and sometimes our most raw or basest knee-jerk responses rise to the surface," she explains.
When an employee enjoys a high level of well being, it makes all the difference. "Well-adjusted people take responsibility for their behavior, have abilities to monitor their responses and emotional levels, and address situations calmly-at least most of the time," Bower says.
Sour colleagues spread bad energy. "People who may be described as 'unhappy' have a very negative impact on the entire operation, adding layers of stress that are just unnecessary and frankly unbearable," she states.
Bower has seen the result of organizations run by positive people. "Those organizations comprising 'happy' and fulfilled individuals are more nimble, overcome challenges more easily, and remain optimistic and enthusiastic about achieving goals and advancing their missions," she tells demo dirt.
To achieve this kind of organizational nirvana and reap greater revenue, what can employers do to facilitate happiness among their employees?
Bywater says there are a number of things employers can do to help. "First of all, they must recognize that the workplace should be a motivating, engaging, rewarding place to be. Employers should foster a culture of inclusion and collaboration," she advises.
"There should be ample opportunity for professional advancement as well as consistent recognition of individual and team contributions," she adds. "Work should be tied into the company's vision and mission, in order to create a sense of meaning and accomplishment. Moreover, wise employers will understand and accommodate employees' needs for work/life balance."
Bower also has tips for facilitating happiness in the workplace. "Make sure that people's job descriptions and responsibilities are clear and achievable," she says. "Cultivate a culture where taking on prudent risk is welcome, where people's ideas matter, and in which people are rewarded for their innovation."
When employees face adversity, or have a negative attitude, employers should empathetic while confronting the issue. "Use empathy and compassion to accommodate employees facing temporary difficult times and be swift in minimizing the negative impact unhappy employees have," Bower advises.
Despite best efforts to achieve happiness in the office, she says, sometimes things don't work out, and then tough decisions must be made to avoid losing good employees. "You can't always know when you've hired someone who isn't the right fit; however, allowing a negative situation to fester will cause talented people to move on," she warns.
Sometimes employers make major mistakes when it comes to employee well-being, the worst of which is to ignore the obvious. "The biggest mistake would be to ignore the relevance of happiness and psychological well-being in the workplace," Bywater says. "People bring their whole selves to work, not just some fraction of who they are. Employers must recognize this fact and do what they can to create a rewarding, positive, meaningful and fulfilling work environment."
Bower adds that other missteps include ignoring problems in order to avoid confrontation, failing to acknowledge that some people's problems won't be solved due to a performance review, and like Bywater, notes that the wrong management style can be counterproductive, such as "taking an officious approach, rather than one that is compassionate and empathic," she notes.
In these difficult economic times, as job losses mount and fear of unemployment increases, employers have specific challenges to face if they want to facilitate harmony and increase profits. As workers witness their co-workers lose their jobs, or watch friends and family struggle, employers may see workers at a greater risk of becoming unhappy.
"Wise employers will recognize the challenges faced by their employees and acknowledge how difficult it is for everyone to feel confident and content in today's environment," Bywater says. "Employers should communicate clearly, consistently, and frequently about the challenges and opportunities that lie ahead. Furthermore, they must provide opportunities for employees to voice their concerns freely and without fear of repercussion."
As employees strive to be productive and keep up their spirits, their supervisors should note their efforts, especially in companies that have already experienced layoffs, she states. "Employers should also be sure to express their appreciation of their employees' loyalty and hard work," Bywater adds. "Many employees are being handed broader responsibilities than ever before, as they take on the work of those who have been laid off. Savvy employers take the time to say 'thanks.'"
Never underestimate the importance of happy employees. "Happier employees are more productive, creative, collaborative, and loyal to their employers," Bywater tells demo dirt. "They are also more likely to go above and beyond the basic requirements of their jobs, thereby adding greater value for their organizations."
News relevant to demographic trends--such as the generational trends of Baby Boomers, Generation X, Generation Y, and Matures--is posted several times a week on www.demodirt.com and demo dirt GOLD. To contact the editor, please email Galia Myron.
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