Research confirms it: Happy workers are more productive

It should not be surprising, but when people love their jobs, and are empowered to address problems, they are more productive. They may work late, go home exhausted, but are anxious to return the next day. Research confirms they have better, happier lives and that carries over to their families and daily contacts.

That is the focus of the research and writing of Harvard’s Arthur Brooks. He argues “To get the best out of people, treat them as people.” Multiple studies show investing in employee “well-being . . . not only raises employees’ quality of life – it significantly increases productivity and profitability as well.”

An added performance factor is an employer’s purpose. A Harvard Business Impact column reports, “Only 7% of Fortune 500 CEOs believe their company should ‘mainly focus on making profits and not be distracted by social goals.’” “Purpose-oriented companies . . . achieve 30% higher levels of innovation and better performance overall when leaders and employees believe in and act upon its purpose.”

Once the purpose is defined, “The next step is building authentic commitment from leaders at every level of the organization. That requires each leader, down to front line supervisors, to internalize the purpose and find ways to integrate it into the everyday work they and their teams do.” 

“Research supports . . . having a sense of purpose has been linked to better health, increased longevity, and higher overall well-being.” When its shared by leaders and co-workers, it strengthens working relationships, mutual trust, and the team raises performance levels.  

Factors that drive employee happiness at work

A Forbes column, “Happiness At Work: The New Competitive Advantage,” builds on research in the field of positive psychology. As a business journal, the author was writing for business leaders, but the argument is relevant to leaders in every sector. 

A key point from the column is, 

“Leaders have a significant impact on employee happiness. They set the tone for the workplace culture and can either inspire their teams or contribute to a toxic environment. Leaders who are . . . supportive create an atmosphere where employees are more likely to feel safe and valued.”

The drivers of happiness are:

• Purpose and meaning: Employees who feel connected to their company’s mission are more likely to be motivated and satisfied. 
• Recognition and appreciation: “A simple ‘thank you’ can go a long way.” It’s more than a pay increase or bonus. “Creating a culture of appreciation can boost morale and a sense of belonging.”
• Autonomy and flexibility: “Most employees thrive when they have . . . the freedom to manage their time. Autonomy empowers employees to take ownership of their tasks . . .”
• Positive work environment: A supportive work culture that prioritizes respect, inclusivity and collaboration is crucial for employee happiness. Leaders play a pivotal role in setting the tone . . .”
• Growth and development opportunities: “ . . . employees want to feel that they are growing and advancing in their careers.”

A search found a related column in Insurance Journal lists: supportive work environment, fair compensation and benefits, meaningful work, work-life balance and recognition and support. It’s also consistent with the annual Fortune list, “The Best Companies to Work For”.

The Fortune companies highlight a point relevant to government. The top 10 are in very different industries: finance, technology, hotels, consulting and supermarkets. Wegmans is the supermarket and the company has made the list annually for 26 years – and they has also ranked as one of the country’s best supermarkets. Clearly high salaries are not the reason Wegmans is one of the best. 

Mistakes business leaders make

Another Forbes column highlights the mistakes business leaders make that can undermine efforts to build an engaged, high-performing workforce. 

Four mistakes stand out as relevant in large organizations:

• Lack of concern for employee wellbeing: In a survey, 63% of people left an employer “because they didn’t feel a connection with leadership.” Leaders “are not responsible people’s wellbeing” but they “are responsible to create the conditions for wellbeing” and “a culture of respect, appreciation and growth.” 
• Lack of empowerment: “Failing to empower people or failing to provide autonomy, choice or control are mistakes of leadership.” When employees have the “power of choice” [to tackle job-related problems], they “develop greater skills and capabilities.” People want to feel like they are trusted.
• Lack of accountability or follow through: “ . . . failure [of leaders] to admit mistakes or take responsibility for their actions that had a negative effect on the culture.” 
• Lack of attention to employee opinions: By prioritizing employee feedback and demonstrating a commitment to continuous improvement, organizations can cultivate a culture of openness and trust.

Business leaders make mistakes of course as everyone does, but all companies have the common goal of making a profit. Employees understand that. Everyone wants their organization to be successful or at worst to avoid failure. That’s true as well in healthcare, education and not-for-profits. Disregarding the importance of employee engagement guarantees poor results.

Government should have an advantage

Government more than any business is intended to serve a purpose, actually multiple purposes, important to the public. That has been central to the attraction of government careers. It should make government on paper the best of employers.  

The shift to goal-based management under the Government Performance and Results Act and related laws was intended to shift management’s focus to achieving agency purpose. The management “framework” is the subject of Performance.gov. Leaders are “held accountable for establishing organizational routines and management processes for setting performance goals and objectives that deliver results for the American taxpayer.”

Missing from that website is any reference to employees. Government may never become a “high performance organization” – that possibility is never discussed on federal websites – but the silence on practices known to affirm the importance of employee “well-being” or value stands out. 

If hotels and supermarkets see the value in being a “great place to work”, it’s clearly reasonable to think that would benefit government as well. The value of worker satisfaction was documented decades ago. “Happiness” may be a “goal too far” but leaders should focus on what enhances employee performance.