Is Happiness Important Anymore?

As a Fortune 500 consultant, I work with HR Executives and Boards to design systems for optimized performance. For 20 years, I've been studying human performance. Often, the first thing I am asked to evaluate are incentive structures. Sadly, the research on incentive structures (bonuses) is mixed at best. There are even studies that demonstrate that bonus systems can reinforce negative behaviors, especially if targets are not aligned to strategic growth. For example, in consultancies, often boutique firms will outperform the giant firms with exceptional margin, because internal staff collaborate and share their network contacts with one another. In bigger firms, there is often an individual performance bias, and staff do not collaborate at scale. If we reward solo achievement, we miss the power of the hive.

In general, our models of work suggest that the best performers sacrifice the most.??They stay late. They give up family functions to get work done. They do whatever it takes to get the job done.??We promote these folks.

However, if we take away the number of widgets produced and instead look at innovation, network growth, and widening the total addressable market, the research looks different in a way that is counterintuitive. We still have not graduated from the machine model: human beings stay late and, therefore, do more. Research suggests a counterintuitive truth: balance and happiness drive success in the long term. Happy employees spark innovation and dynamic performance.?? Growth is fueled by balanced, happy employees who are capable of innovating, working smarter, not harder, and seeing the signal in the noise.

The conventional wisdom has long posited that grinding away now will pay off in happiness later. ?We work hard to earn more money, get promoted, and then finally, one day, when we arrive in our leadership position, we get to EARN our happiness.?? Research on human performance flips this script, revealing that happiness enhances performance and resilience, making success more attainable. Our brains work better when we are happy. Far from the superficial gloss of “irrational optimism,” this approach—rooted in what Shawn Achor calls "rational optimism"—demands a clear-eyed assessment of our current realities paired with an unwavering belief in a brighter future.? In short, resiliency + optimism = results.

The hunger for forward momentum, even amidst restructuring and the absence of bonuses, underscores a profound truth: a positive and engaged workforce is the ultimate competitive edge.? The data is compelling. Positive brains outperform negative, neutral, or stressed ones across a myriad of metrics: intelligence, energy, resilience, and creativity. For instance, doctors make diagnoses 50% faster with greater accuracy when they're positive, and even four-year-olds solve puzzles more efficiently when they’re in a good mood.

For the skeptics, this isn’t about an unattainable utopia. The “happiness advantage” is within reach for everyone, regardless of their baseline disposition. Achor’s strategies for fostering positivity are deceptively simple yet profoundly effective. One powerful tool is the “Zorro Circle,” where you focus on small, manageable areas you can control, gradually expanding your influence. Gratitude journals and meditation work. Improving your physical body works. Mindset training works. These are simple, highly profitable hacks any organization can implement, and HR organizations still seem scared to touch them. When are we allowed to admit that executives SHOULD be meditating, learning to understand their thoughts, questioning their assumptions, working with their feelings, and speaking from a place of higher wisdom?

Managers can see a 31% boost in productivity just by recognizing one employee daily for 21 days. Simple practices like writing down three things you’re grateful for at the start of each day can rewire your brain, setting a tone of appreciation that ripples through your team and organization.

The transformative potential of these practices was vividly demonstrated in a study with KPMG during a taxing economic period. Tax audit managers who adopted positive habits reported higher job satisfaction and lower stress levels, not just immediately after training but months down the line, underscoring the enduring impact of these changes.

Ultimately, the brain is malleable, and with consistent effort over 21 to 28 days, positivity becomes a self-sustaining habit. As Achor’s work shows, investing in the happiness of your workforce isn’t just a feel-good endeavor—it’s a strategic imperative that pays long-term dividends in performance and well-being.

If you want to learn more about HOW to do this in your team or if you are leader who is BRAVE enough to venture into personal improvement, I am glad to help. I love coaching leaders and helping teams be even better.

Cheers,

Dr. Ryan Pride

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