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ClayWorks-Spotch

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Too many companies bet on having a cut-throat, high-pressure, take-no-prisoners culture to drive their financial success. A vast body of research on positive organizational psychology shows that not only is a cut-throat environment harmful to productivity over time, but that a happy environment will lead to substantial benefits for employers, employees, and the bottom line. 

In our previous editions, we discussed why employee happiness is important and how we can achieve it. In this edition, we share a few stats to establish that happy employees mean good results for the company! 

  • A study conducted at the University of Warwick showed that productivity among the happy people increased by an average of 12%, and reached as high as 20% above the control group. 
  • Another study published in the Harvard Business Review revealed that keeping your sales team happy can increase sales by up to 37%
  • Another decade of research by HBR proves that happiness raises nearly every business and educational outcome: raising sales by 37%, productivity by 31%, and accuracy on tasks by 19%, as well as a myriad of health and quality of life improvements. 
  • Revenues increased by an average of 22.2 per cent YoY (in 2014) in Fortune 100 Best Companies to Work For, as reported by CNN 
  • In the Gallup study, organizations in the top quartile for employee engagement had 24% lower turnover, 17% higher productivity, and 21% higher profitability compared to organizations in the lowest quartile. 
  • Also, good news for your organization’s stock price, the stock prices of Fortune’s “100 Best Companies to Work for” rose 14% per year from 1998 to 2005, while companies not on the list only reported a 6% increase. 
  • Keeping your employees happy will save you money and time to replace them which can cost between 16% and 213% of their salary

These are some impressive numbers. Just think of what your company could accomplish if your employees were so much more productive.  

This goes to say that employee engagement isn’t just a feel-good-warm-and-fuzzy concept; it’s tied to organizational performance. There’s plenty of hard evidence that shows that happy employees lead directly to better performance and higher profits

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THE MOST IMPORTANT METRIC THAT DEFINES YOUR WORKPLACE.

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