In today’s business landscape, most agree that people are the greatest assets for any company. However, there is a growing realisation that happy people are essential for long-term success. While the “how” of making and keeping employees happy is important, this article will focus on the outcomes of employee happiness—on company sustainability, profitability, and its positive impact on the wider community.
The Impact on Company Success
Happy employees naturally feel more connected to their colleagues. These strong ties lead to mutual support, especially during challenging times when tight deadlines loom, and creative problem-solving is critical. Employee happiness fuels engagement, and high engagement drives success. For example, IBM once cited employee engagement as the driving force behind two-thirds of its positive client experiences.
Moreover, happy employees are less likely to leave—especially not for financial reasons. They rarely entertain offers from competitors and are far less likely to leak sensitive company information. Their loyalty enhances the company’s reputation, encouraging top talent to join. In today’s work environment, where employees prioritise fairness, social responsibility, and purpose over mere financial gain, this reputation is a priceless asset.
It’s important to note, however, that local culture plays a significant role in defining what makes employees happy. What works for employees in one region may not apply in another. Companies must adapt to the unique cultural expectations of different regions if they want to retain a happy workforce. When employees are content, they become organic brand ambassadors, speaking positively about the company outside of work. Happiness is contagious—one happy employee will inspire another.
The Community Connection
Beyond business performance, happy employees contribute meaningfully to their communities. Here are just a few ways their well-being has a broader impact:
- Social Engagement: Happy employees are more likely to participate in local events, volunteer, and get involved in community service initiatives. Their positive mindset fuels a desire to give back.
- Economic Contributions: Trusting in their company and steady income, happy employees are more inclined to invest in homes, boosting the local economy.
- Better Social Well-being: With enhanced mental health and social well-being, happy employees nurture better relationships with their families, friends, and neighbours.
Boosting Employee Commitment
Happiness plays a crucial role in boosting two key types of employee commitment—affective and normative. Affective commitment develops when employees feel emotionally attached to the organisation, driven by a sense of belonging and alignment with company values. Normative commitment grows when employees feel loyal and compelled to reciprocate the care they receive from the organisation.
Happy employees are motivated to work hard and stay with the company, as they feel a sense of ethical duty to perform well. They are less likely to skip work, and happiness leads to lower absenteeism. A positive work environment also fosters creativity and innovation, as employees feel safe sharing new ideas and assessing risks.
Conclusion
In conclusion, businesses must understand that productivity and happiness are two sides of the same coin. By cultivating happiness in the workplace, companies not only improve their performance but also create a ripple effect that positively impacts the community at large. Employee happiness is no longer just a perk—it’s a strategic advantage.
Dr. Youssef Lamaa
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