Last Wednesday was International Happiness Day. The worldwide celebration began in 2013 by the United Nations to acknowledge and emphasize happiness as a fundamental human goal. In the past few years we have recognized happiness as fundamental to good health both in life and in business!


While at times it might be easy to get caught up in the pursuit of productivity and profit at the expense of employee well-being, we now have evidence that employee well-being is indeed the KEY to productivity and profit in all kinds of businesses!


Today research consistently shows that fostering happiness at work isn’t just a feel-good initiative—it’s a strategic imperative that directly impacts productivity and profitability.


Just in case you needed reminding (and I think we all do) – here are seven compelling reasons why you should prioritize happiness in the workplace:


Enhanced Productivity: Numerous studies have demonstrated a strong correlation between employee happiness and productivity.  The largest study ever, done last year, shows that happy employees are up to 14% more productive than their unhappy counterparts. Let’s face it, when employees feel satisfied and engaged, they’re more motivated to perform at their best, and that leads to increased output and efficiency. And work becomes more fun too!


Improved Employee Retention: That’s a no-brainer – when you invest in employee happiness it really pays off in the long run by reducing turnover rates. High turnover disrupts workflow but also includes significant costs associated with recruiting, hiring, and training new employees. A study by Gallup found that organizations with engaged employees experience 59% less turnover, highlighting the importance of creating a positive work environment where employees feel valued and fulfilled.


Enhanced Creativity and Innovation: This is my favorite! Happiness fosters a conducive environment for creativity and innovation to flourish. When employees feel happy and supported, they’re more likely to think outside the box, contribute new ideas, and take calculated risks. When the human brain is in a state of “positivity” a fascinating phenomenon occurs – the right and left hemispheres begin communicating better together causing something called the “Broaden and Build” response. Creativity and innovation soar 3 – 10 times when you practice happiness as a core value. Happy people solve problems quicker!


Better Employee Engagement: Engaged employees are emotionally committed to their work, they enjoy what they do and who they do it with. They demonstrate a willingness to go above and beyond their job requirements – and that “going the extra mile” behavior is loved by customers! By prioritizing happiness, organizations can cultivate a culture of engagement where employees are enthusiastic about their roles and actively contribute to the company’s success.


More Customer Loyalty Happy employees directly contribute to improved customer satisfaction and loyalty. When employees feel valued and motivated, they’re more likely to deliver exceptional customer service, resulting in positive experiences for clients and customers. Research conducted by Harvard Business Review found that companies with happy employees experience 1.3 times higher customer satisfaction rates, emphasizing the ripple effect of employee happiness on overall business performance.


Reduced Absenteeism: A positive work environment promotes employee well-being and reduces absenteeism and presenteeism – “quiet quitting”. This is where employees show up for work but are not fully productive due to physical or mental health issues, can be particularly costly for organizations. According to the World Health Organization, depression and anxiety alone cost the global economy an estimated $1 trillion per year in lost productivity. Prioritizing happiness and supporting employee well-being, is not only the right thing to do it’s the smart thing to do.


Increased Profitability: Ultimately, investing in happiness at work translates into bottom-line results. Happy employees drive revenue growth through their enhanced productivity, creativity, and customer-centric approach. By creating a culture that prioritizes happiness and well-being, organizations can unlock their full potential and achieve sustainable profitability in the long term. But you knew that didn’t you?


Happiness and well-being work aren’t just a lofty ideal—they’ve become a strategic imperative that directly influences productivity, profitability, and overall business success.

By prioritizing employee happiness and creating a positive work environment, you reap the benefits of enhanced productivity, innovation, and customer loyalty (and referrals!) All of that is going to drive sustainable growth and competitive advantage. After all, isn’t that what you want?

Be well, stay happy,


PS Almost of all of our workshops can be done remotely now– check them out!  And we now have a lively series of lunch and learn programs be sure to call 561-279-0027 or write to find out how you can start creating MORE happiness where you work!

If you follow me on Linked In you can see all the posts we made last week to raise awareness of the importance of happiness. (While you’re there be sure to follow me!)




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