Today, there are countless articles to explain how company culture is changing the way employees operate. However, until recently, there was little research available to prove the accuracy of these claims. In December 2016, a study conducted by IZA World of Labor proved that happy workers are more productive. Additionally, Surrey Business School released another study that claimed people’s energy toward their colleagues has a major influence on how likely they are to leave their job voluntarily.
Company culture is a must-have for businesses that want to maintain a happy, productive workforce that enjoys coming to work on a daily basis. Especially with the Millennial generation, company culture is a main factor people look for when it comes to finding an ideal job. A focus on the organization’s culture engages workers and keeps them feeling fulfilled and challenged at work. Businesses can help employees shift their mindset from holding a job to establishing a long-term career within the company. Employee loyalty gained by great company culture practices will help businesses thrive and succeed as productivity levels soar.
Keeping Employees Happy Leads to Productivity in the Workplace
IZA World of Labor’s study finds that a rise in workers’ happiness leads to an increase in productivity. In the report, Dr. Eugenio Proto, associate professor in economics at the University of Warwick, reminds businesses that worker well-being should be at the center of any company culture strategy. When workers consistently experience satisfaction, eagerness, and genuine interest, they are more likely to succeed in the workplace.
For this reason, it is beneficial for business leaders to invest in a worker wellness program, flexible job options, and professional development opportunities. Companies also can organize their own volunteer day or support an existing community service program, which provides employees with additional opportunities for personal development. When a company offers programs that help employees better themselves, it motivates them to perform their best in all circumstances.
By demonstrating a true concern for employee happiness and growth, business leaders inspire workers to spend more time on their tasks, producing great results as a whole, as well as coming to the table with more ideas to share.
Positive Energy Is Key to Employee Retention
Keeping retention rates low is a huge goal for an organization, as there is usually a high cost associated with replacing an employee in terms of recruitment fees, training, and loss of organizational performance. It’s estimated that such costs can equal up to 4.5 times the salary of an executive-level employee. To avoid these costs, businesses are eager to find ways to invest in their employees in order to increase loyalty, as well as help their employees feel they are building a career within the company—both of which are highly influenced by the attitudes of their coworkers.
The Surrey Business School study reports that when employees feel high energy among colleagues, they are less likely to leave the organization voluntarily compared to those who experience low energy with workmates. In other words, it’s all about building relationships with employees and encouraging them to foster personal connections with each other.
Businesses can do this by encouraging employees to cross-train and pick up skills from other teams, or planning something outside of work hours such as a team excursion or a happy hour event. Anything that creates lively interactions between leaders and employees can be beneficial. By getting workers away from their computer screens, business leaders can help create a workplace environment that encourages teamwork, innovation, and personal growth.
These two studies highlight that when businesses take the time to improve the workplace environment and employee satisfaction, they are making strides toward increased employee performance and success at work. Ultimately, it is always beneficial for business leaders to think about how they can make employees’ lives better on a daily basis.
David Dourgarian is the president and CEO of TempWorks Software, based in Eagan, MN. His accomplishments within the company include launching the payroll funding and payroll processing divisions, as well as engineering a substantial software partnership with Sterling National Bank.
