Happy Employees Are Good For Business

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Jan 10, 2018

Editor’s Note: It’s an annual tradition for TLNT to count down the most popular posts of the previous 12 months. We’re reposting each of the top 30 articles through January 2nd. This is No. 14 of the 800 articles posted in 2018. You can find the complete list here.


It’s highly beneficial for companies to create a happy, healthy work environment for their employees because, let’s face it, losing employees can be costly.  Turnover is a huge loss of time in a variety of respects.

  • Wasted/lost time having trained the (now gone) employee
  • Time needed to post job listings to hire a replacement
  • Significant time interviewing replacement candidates
  • Once you finally find someone, you have to train that position all over again.

In addition to a huge investment in time, there are also financial losses. The Society for Human Resource Management gives the example of a medical facility losing one $75,000 a year nurse translates into a turnover cost of as much as $41,000. And that’s just one employee.


For a different perspective see “A Dozen Good Reasons You Should be Cautious About Employee Happiness.”


Here are 5-more benefits to keeping employees happy:

  1. Better decision-making abilities – People are better equipped to make decisions when they are cheerful. On-the-job difficulties engender some degree of fear and nervousness in most of humanity, but satisfied people can return to their original mood faster after being faced with adversity.
  2. Happy people sell more – A simple search on Google of “happy people, productivity, success, business” are better at business” returns countless articles and several studies showing happy workers are more productive.   The expression of positive emotions can be an effective bargaining tool.
  3. Greater innovation – There’s strong evidence showing a correlation between happiness and creativity. Some 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.
  4. Reduction in lost productivity – Happy people are healthier. When employees take less sick leave, they are more productive, thus improving the bottom line.
  5. Better customer service – This is a no-brainer. People like happy people. And when it comes to customer service, businesses need to be cheery. When employees’ morale is high, customer interactions reflect it. Happy people are the perfect people pleasers for customer service-based roles.

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.

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