Learning & Development

How Can Happy Employees Increase Your Bottom Line

Everybody knows stress is responsible for killing creativity. If people are happy, they are likely to have greater energy and creativity levels, but businesses have historically not prioritized employee happiness; instead, they tend to focus on keeping their clients and customers happy. But there is a definite connection between having happy employees and satisfied clients.

Studies have shown that increased happiness leads to an observable rise in employee focus and passion. In such cases, productivity levels rise by around 10%, demonstrating that employee engagement and productivity is a sign of a healthy work environment. If you are looking to improve company profits, keep in mind, however, that it’s not always about money; you should also take small measures to keep employees satisfied, as there is a direct correlation between employee satisfaction and a business’s bottom line.

Here are some tips you can use in your management strategies to increase your employees’ happiness levels.

1. Develop Trust

If you are an experienced businessperson, you know that trust is the foundation of any organization. It is not possible to develop a happy work environment if there isn’t innate trust between you and your employees. Knowing their employer trusts them makes employees feel valuable and motivates them to increase their contributions to the business, so if employees feel their employer trusts them to complete their assigned tasks, they will be more likely to perform creatively and confidently.

2. Give Them Consistent Feedback

All employees want their employer to notice their hard work, but they also expect constructive feedback from management. Therefore, leaders need to be accessible and give employees consistent feedback about their work, strengths, weaknesses, and how their performance can be improved. Keep in mind that having open lines of communication between yourself and your team can be effective only when it is fair and objective, so use this as a tool for instructions rather than a method of handing out punishment.

3. Provide Employees with Growth Opportunities

Talented employees will always try to learn and increase their knowledge levels. Harvard Business Review says that a driving force of employee motivation is the urge to get better at work and make progress. With this in mind, prioritize giving your workers tasks that help them grow professionally rather than an excess of mundane tasks.

4. Appreciate Employees’ Hard Work

Engaged employees will always try to exceed the call of duty, take full responsibility for their assignments, and often complete their tasks before deadlines. However, to keep their motivation levels high, leaders should continuously show their appreciation and give employees due credit, such as a pat on their back or written feedback on a task well done. Establishing a positive feedback loop helps keep engaged employees positive. In case you prefer giving online feedback, you can create individual files for each employee in which you include everything you have to say, starting with what they are doing right and that they are appreciated, then providing constructive criticism. Make sure to deliver the feedback kindly. Let your employees know you will be sharing files, and have workers read your comments in private. 

Many companies offer incentives and bonuses to their employees as a kind of appreciation, but money isn’t everything; public appreciation can also be an effective form of praise. Employees will enjoy the elevated social status and rejoice in the glory of being recognized for their hard work. There are several ways to do this, including calling them up on stage during the next organizational event, mentioning their names in a newsletter, or even introducing an award like employee of the week. Even providing a simple gesture, like a shout-out during office hours, can do wonders.

5. Offer Greater Flexibility

The days of 9–5 office hours are gone, and we’ve entered the era of digital technology in which people are working with greater flexibility and maintaining better work/life balance. Provide your employees with independence within the workday, so long as they are working for 40 hours a week and meeting project deadlines. You can integrate hybrid work methods, as well, and use shared spaces such as the coworking spaces in Chicago. Additionally, the advent of cell phones and Wi-Fi devices has made life easier for employees to work anywhere despite not being present in the office. By allowing employees to work from home, you can ease their stress and contribute to their happiness, ultimately improving productivity.

6. Promote Better Work/Life Balance

Business owners need to understand that their employees have a life outside of work, be it a family or extracurricular activities such as hiking or music. Therefore, leaders should create proper initiatives that can support their workers’ lives, such as providing a lactation room for mothers or catering to the needs of those who like to work out regularly.

7. Give Those Who Achieve Personal Goals a Pat on the Back

Good leaders can encourage a bit of selfish thinking within the workplace by encouraging their staff members to achieve their goals. Let’s say an employee is pursuing higher education. You can support this person’s dream by allowing him or her to take time off from work to prepare for and take an important test. Or, you could consider remodeling options for the office to create a cozy and comfortable space for your workers to focus on various tasks.

Alternatively, say an employee wants to further his or her career and grow professionally. You can allow the employee to study the business, attend significant conferences, and allow him or her to participate in internal mentorship programs. Investing in employee growth not only is beneficial to the business but also helps make workers feel appreciated and seen. This gratitude and satisfaction in being given opportunities can, in turn, propel employees to work harder and to the best of their capabilities to raise the company bottom line.

8. Improve Positivity

Happy people love their work and are constantly looking to perform to the best of their abilities. Leaders can help maintain employee happiness by practicing internal philanthropy and building a positive workplace culture. Employees in your organization spend hours to ensure you stay in business, and employers can give some of this time back, such as by setting time aside for family fun days, holding teambuilding activities, or providing opportunities for employees to do community service. This culture of giving and sharing happiness can make your employees happy to work for your company.

9. Concentrate on Your Employees’ Strengths

Your staff members are your organization’s greatest asset, so find out what makes them awesome. Team managers who concentrate on employees’ strengths and provide opportunities for them to shine in the workplace are successful in boosting employee engagement. For instance, if you have an employee who is good at leading teams, provide him or her with an opportunity to take charge of one of your projects. Employee empowerment via their strengths will, in turn, motivate them to contribute to the workplace more.

10. Set Realistic Goals

Most companies have huge goals that employees can’t be expected to reach overnight. So, create smarter, more obtainable goals to motivate them. For example, if you have a big project or deadline coming up, break tasks up into smaller and smarter goals to keep staff at ease, focused, and engaged.


All leaders agree that employee attitudes play a significant role in the success of a company. To keep your teams happy and engaged, incorporate these tips into your leadership style, execute them every day, and provide employees with a reason to get up every day and be excited about work. After all, happy employees are engaged employees, and engaged employees help raise your bottom line.

Beck Rana is a Guest Contributor for HR Daily Advisor.

Leave a Reply

Your email address will not be published. Required fields are marked *