Happier employees stay longer:
Happy, satisfied workers are less likely to demonstrate “job withdrawal” through turnover, burnout, and retaliation against the organisation. Instead, they are more likely to go beyond their job requirements, spread goodwill, help others, make constructive contributions, and commit to developing themselves within the organisation.
How much would a 10% reduction in staff turnover save your business?
Calculating happiness ROI
Tony Hsieh, the founder of Zappos and author of Delivering Happiness at Work, famously grew a shoestring start-up to a $2 billion company by creating a business model fueled by happiness.
Here is his ROI calculator if you want to calculate how much your business can benefit by increasing the level of happiness in employees, even to a modest degree.
Researchers such as Fred Luthans and his team at the University of Nebraska are developing financial modelling methods to estimate the value happier employees contribute over time.
For example, micro-interventions that develop psychological resources by increasing hope, optimism, confidence, and resilience have been estimated to reap (conservatively) 2% annual returns, realising $585 million in revenue in the average mid-sized business, and far higher value in retention of A-list employees.
Forward-thinking businesses are increasingly recognising that happiness translates into tangible business outcomes which impact the bottom line.
Positive emotion: The key success factor
Many researchers believe that positive emotions and mood are the prime drivers that bring about success.
Positive emotions lead people to think, feel and act in ways that broaden their thinking patterns, build their personal and social resources, and encourage them to work toward positive goals. When things are going well, and they feel positive, they can relax and expand their resources and relationships, take the opportunity to try out new strategies and skills, set new goals and prepare for challenges ahead.
The flow on effect of positive emotions forms the science behind Barbara Fredrickson’s Broaden-and-Build Theory. She has found that positive emotions reset negative emotions, creating an upward spiral that counters downward spirals of negativity. This positive energy spreads through organisations to enable cooperation during organisational transformation and growth.
Add to this the powerful effect of ‘emotional contagion’ within groups—both positive and negative — and you will see how important positive emotions can be for the climate of an organisation and the wellbeing of the whole business.
It is important to understand that just as positive emotions boost our happiness and improve our thinking, negative emotions also have essential benefits. In some circumstances, they are critical to our survival and can help us evaluate actions and risks.