Workplace Wellbeing Academy News

This week we look at a study published this Summer on how there is a convincing business argument for the promotion of workplace wellbeing.

Prioritising the wellbeing of your workforce isn't just a matter of morality—it's a smart business strategy. A recent study published in Management Science highlights the strong connection between employee happiness and increased productivity. The impact is substantial, with each incremental increase in happiness (rated on a scale of 0-10) resulting in a noteworthy 12% uptick in productivity, measured specifically through the quantifiable metric of sales generated by employees.

While the link between happiness and productivity is widely accepted as intuitive, establishing a direct connection proves challenging due to inconsistent definitions and measurements of both concepts. The elusive task of quantifying employee happiness is a critical piece of information needed to definitively link happiness and productivity.

The study's authors propose several potential explanations for the observed productivity boost associated with happiness. Notably, the study dispels the idea that increased happiness prompts employees to extend their work hours. Instead, the enhanced performance is directly tied to the positive emotional state.

One possible explanation is that happy employees demonstrate superior time management skills, enabling them to efficiently organise their schedules and tasks. Another potential reason is the accelerated pace at which individuals operate when in a positive mood. Additionally, the study suggests that people may be more adept at converting interactions into sales when in a positive state of mind, particularly relevant for sales roles.

While the third reason is specific to sales positions, the broader implications suggest that collaboration improves universally when individuals experience positive moods. Given the well-established negative impact of adverse emotions on collaboration, it logically follows that a joyful employee contributes to a more cooperative and efficient work environment.

For executives, particularly those in Human Resources leadership roles, this study provides crucial quantitative insights to strengthen the business case for investing in employee well-being programs. The starting point for such initiatives lies in measurement. Contrary to common misconceptions about the difficulty of gauging wellbeing, assessing current levels of happiness at work provides a foundational baseline. Armed with this information, organisations can tailor interventions to enhance overall employee wellbeing, transforming the workplace into a source of joy rather than a potential wellspring of dissatisfaction. The study underscores that work, often seen as a potential source of unhappiness, presents a significant opportunity for companies to shape the employee experience into one characterised by joy and fulfilment.

If you want to learn more about mental health and wellbeing and how to promote positive mental health and wellbeing for yourself and the teams you manage then a great starting point is aour e-learning package, Mental Health Essentials. Click here to find out more.