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A Happy Workplace Leads to Happy Employees Leads to Happy Clients

some people cultivating a positive work environment

When it comes to business and market competition, every organization is striving to have an edge. Being first to market, tapping into innovation, and offering higher customer value are tried and true strategies… but one of the key ingredients in achieving these measures and promoting productivity is often overlooked. Specifically, organizations cultivating a positive work environment routinely outperform others that don’t. Why? Because these types of settings create happy employees that are more engaged and creative. Of course, these are far from being the only benefits of a happy workplace. And businesses should appreciate just how impactful a happy work setting can be in their pursuit of success.

a dude cultivating a positive work environment
It turns out that cultivating a positive work environment is good for your clients–who knew?

(Company culture doesn’t require an office–read why in this Bold story.)

Repeatedly, statistics have demonstrated that happy workers lead to happy customers and profitable businesses. The benefits of a happy workplace tend to be contagious affecting every aspect of an organization’s activities. However, cultivating a positive work environment takes effort and planning. It goes beyond simply rewarding workers well and having a smile on your face. Companies that excel in this regard embrace specific strategies to achieve this mission. This is why they consistently perform better and attract the best talent. Understanding this, it is important that businesses recognize how to create positivity and a happy workplace culture. With a bit of planning and investment up front, they too can reap the benefits of a happy workplace.

Happiness Stats in Business

Intuitively, it might make sense that cultivating a positive work environment might have beneficial results. But studies have supported this notion as well. Several surveys have shown that there are a number of benefits to a happy workplace. In terms of productivity, happy employees tend to boost their efforts anywhere from 12% to 20%. Naturally, this leads to better profitability for firms in the long run with some studies showing a 200% improvement. Employee retention also improves with happy work settings. Overall, businesses with positive work environments see a 59% drop in turnover. And absenteeism averages a decline of more than 40%. All of this suggests investing in a happy workplace better utilizes resources available.

(Guess who landed on #46 on the Top 100 Global Most-Loved Workplace List? Hint: We did!)

Given these figures, one might assume all companies were cultivating a positive work environment. But surveys actually tell a different story in this regard. While many company employees report a positive work setting, roughly 40% recognize room for improvement. In fact, over a third of all employees say they would take a $5,000 reduction in salary for a happier workplace. One of the reasons for this is because of wellness benefits of a happy workplace. Wellbeing on average increases threefold in positive employment settings. In other words, when employees are happy, they feel better and enjoy better mental and physical health. With current generations of workers, this and work-life balance is becoming increasingly important. And cultivating a positive work environment goes a long way in helping achieve this for employees.

a bunch of people with smiley faces
Look, it seemed pretty obvious to us that a positive work environment yielded positive results down the line.

Where Some Businesses Fall Short

When it comes to cultivating a positive work environment, it requires both planning and effort. Companies that presume paying workers well and providing benefits is enough often fall short. Certainly, these are important things to consider in this regard, but happy workplaces demand more in most cases. Research supports that workers are most happy when they believe they matter to their employer and colleagues. They also want to feel that their effort has a positive impact on the company’s goals. And they personally want to feel that they are making progress and growing along with the company. In order to fully realize the benefits of a happy workplace, addressing these specific issues is required. And in some instances, businesses don’t necessarily do this well.

In examining companies that have shortcomings in these areas, the most common misstep is ignoring the “who” and the “why.” In terms of the “who,” an organization may not do enough to make workers feel appreciated. As a result, they might feel they do not necessarily matter to the organization’s success. Companies may also forget to emphasize “why” a worker’s efforts are needed and valued. Highlighting the impact of a worker’s efforts on company success regularly helps in cultivating a positive work environment. Paying attention to these two very important areas can go a long way in creating happy workers. And likewise, these greatly increase the chances of enjoying the benefits of a happy workplace long-term.

Cultivating a Positive Work Environment

people reaping the benefits of a happy workplace
One of the benefits of a happy workplace is happy clients.

Understanding the benefits of a happy workplace, it’s important that companies be proactive in their efforts. This means investing in worker relationships and creating a framework that invites positivity and discourages the opposite. In this regard, companies need to provide support and encouragement to employees in their efforts. They need to also be inclusive in nature allowing workers to be active participants in various processes. This includes decision-making and problem-solving activities so that workers feel valued. Likewise, victories both individually and collectively should be celebrated regularly. This not only promotes teamwork but also highlights the purpose and mission shared by all. Communicating this well can lead to stronger worker engagement while encouraging creativity and innovation.

In addition to these strategies, there are other activities organizations may want to consider in cultivating a positive work environment. One involves routinely measuring worker happiness through surveys or employee conversations. Some studies have employed a “happiness scale” that measures workplace happiness from 1-10. Companies that regularly score in the 9-10 range are among those that see the best effects. This can offer a guide in assessing areas for improvement in cultivating a positive work environment. Seeking input from workers as well can be quite fruitful in not only improving workplace morale but fostering trust and respect. And ultimately, all of this leads to enhanced customer satisfaction and performance. This is why investing in a happy workplace is well worth from every perspective.


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