What Are the Employer Benefits of Increased Employee Happiness
12th October 2021
Find out what the employer benefits are of organisations focusing on increased employee happiness as part of their workplace culture.
64% of workers are satisfied with their job. This is a fairly high number, but we’re doing our bit to increase it as we want it to be even closer to 100%. Job satisfaction is just as important for employers as it is for employees.
Employers benefit greatly from having happy employees. This is a topic that we feel isn’t spoken about enough, so we’ve written an article about it.
A happy workforce can have a powerful positive compounding effect on the direction and performance of an organisation overall.
In this article, we’ll explain how employers can benefit from employee happiness, and give you some tips on how you can increase the level of happiness in your organisation.
Increased Employee Wellbeing Leads to Increased Productivity
Happy employees are more productive. This is arguably the most compelling benefit for employers. Productivity is often a key metric with regards to employee and overall company performance. Employers should view productivity as a by-product of the happiness of their employees. Investment in employee happiness produces an ROI that can be measured in productivity.
Higher Retention Rates
Hiring the right people is arguably the most difficult part of running any business. It doesn’t matter how good your strategy or tactics are, competent, motivated people are still required to execute them. Replacing employees, especially the most productive ones, can be a costly process. Consequently, retaining the best employees for a longer period can save employers a lot of money, which can be used elsewhere in the business to achieve a different type of ROI.
A high staff turnover can have a negative impact on morale, which starts a negative compounding effect as that also affects productivity.
A hypothetical example could be that Company A saves £100,000 a year by retaining staff because they are happy where they are.
They could use an employee wellbeing platform such as Trickle to announce this and ask their staff how they think the money could be best invested to make their lives easier, more enjoyable as well as making the company more profitable.
They can now invest that money into improved technology for their staff, which can also increase happiness and productivity. This example shows what we mentioned before: a high level of employee happiness can have a positive compounding effect on an organisation.
A Smoother Recruitment Process
As we mentioned before, hiring is hard — really hard. However, hiring staff to come into a happy workforce is a little easier. Employees that are happy are more inclined to become advocates for their company, meaning that they are more likely to recommend their peers for any vacancies.
This can speed up the recruitment process and increase the effectiveness of the process. These ‘pre-qualified’ incoming candidates are more likely to be better suited to the job and are more likely to have a smoother adjustment period, as they will have their friend or family member as a colleague.
It can also save money on recruitment marketing. If most of the staff have someone to recommend for roles, it creates a pool of candidates that the HR team can use instead of paying for multiple job board placements.
Enhanced Employer Brand
Happy employees are more likely to share their positive employment experiences online, which gives the company’s brand a boost in the eyes of potential candidates. Everyone can’t work for one company, but it’s always good for that one company to have a lot of people who want to work for them.
It gives a halo effect around the company — a sense of prestige and pride of saying I work for Netflix, Github, Google etc.
More Attractive to Customers and Investors
This ‘halo effect’ also extends out to customers. If employees are happy, it will be obvious to customers, improving their customer experience and the chances that they’ll remain loyal to the brand. Loyal customers tend to have a higher LTV and often recommend the brand to their peer group. Retention is more cost-effective than acquisition, so having loyal customers who spend more and who will become an extension of your marketing team is a lucrative competitive advantage.
If you’re planning on attracting external investors to your business, a happy, productive, engaged workforce can be seen as a valuable asset. Investors want to see an existing infrastructure that can be utilised to get a return on their investment. What better way to get them through the door than to show your return on investment in the form of employees who are loving their experience at work.
Increased Business Resilience
Every business, no matter how wildly successful they end up being, goes through hard times. If employees feel appreciated, they are more likely to stick around because they will feel like an integral part of the company and enjoy working there. This makes the business more resilient to adversity. Staff churn in hard times is the last thing a business needs to get out the other end.
Keep Your Staff Happy With Trickle
Now you know the tangible value of employee happiness, you can begin to implement strategies and tactics to increase and/or maintain it by using our platform.
Get real-time staff insights to ensure what you’re doing is contributing to your staff’s wellbeing, empower your employees to use their voice to help drive positive change, celebrate successes, and much more, all in our easy-to-use platform.
Click the link below to get your free demo today.
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By giving your people a place to voice their suggestions & concerns when they need to, you’ll inspire a happier, more productive and loyal workforce.