Keeping employees happy: 12 proven strategies to boost workplace happiness

Happy employees make the world go ‘round. No, really—overlooking its importance can undercut your business success. Gallup’s 2024 State of the Global Workplace Report estimated low employee engagement costs the global economy US$8.9 trillion. Happiness in the workplace is closely tied to employee engagement and plays a huge role in profitability.

Employee happiness is key to a productive workforce, better retention rates, and overall company success. The benefits don’t stop there, either. Companies can reduce turnover, increase innovation, boost employer reputation, and more by improving workplace happiness. This guide will explore why employee happiness matters and provide 12 proven strategies for increasing it.

In simple terms, employee happiness refers to an employee’s positive outlook on their work experience. A healthy and satisfied employee feels fulfilled and engaged in their role. A positive work environment, work-life balance, and growth opportunities help support happiness levels. It also encompasses an employee’s emotional and mental well-being at work.

Other factors that contribute to employee happiness include:

Keeping employees happy is crucial to an organization’s success. Success in the workplace hinges on your team's excitement about producing quality work every day. Team members who enjoy what they do and who they work with serve their company well.

Employers can reap the benefits of increased productivity and creativity by keeping employees happy. Those who feel their work is meaningful are more likely to be productive. Our employee morale research shows that “94% of employees who feel their work is meaningful have not experienced work burnout within the last 6 months.” Burnout stunts creativity and diminishes productivity. Maintaining employee happiness encourages them to do their best work. 

Happiness levels also impact employee engagement at work. Happiness in the workplace requires several aspects to be in place, such as better work-life balance, meaningful responsibilities, and a positive culture. These factors drive employee engagement, which supports better business outcomes. Employee engagement is critical to performance and productivity. The more committed employees feel to a company, the more engaged they should be. 

Happiness is an important factor in boosting retention rates and reducing turnover. An organization will see less turnover when team members are content and satisfied. In a report by SHRM, 61% of respondents listed a lack of career development among the top three causes of turnover. Workers are more likely to be happy when they feel supported by their employer and are given a growth plan. 

Simply stated, happy employees work well with others. Companies see increased collaboration when workers are happy with their work environment and teammates. Employee relations are important to team collaboration, company culture, and happiness. Team members with similar values and thought processes can collaborate to develop innovative ideas. Additionally, satisfied employees are more apt to contribute positively to workplace culture, which can help boost morale.

Customers are also impacted by whether your business has happy employees. Workers who feel proud to come to work daily perform better and support better customer outcomes. Customers who engage with happy employees are likely to have positive interactions and receive better customer service. When a company prioritizes employee happiness, customers benefit from increased innovation, productivity, and pleasant interactions. Customer satisfaction also supports happiness in the workplace, creating a cycle of positive results. 

Recent data has shown that unhappy employees take three times as those who say they are happy at work. This supports the idea that happy employees maintain better health and are more engaged. Work-life balance is critical to promoting happiness and supporting employee well-being. Unhappy employees who lack a sense of balance aren't able to care for themselves to prevent illness or burnout. Fewer sick days and better mental health positively impact a business’s output. 

Happy employees may share positive company reviews, boosting the employer’s reputation. Employees who share positive word-of-mouth or online reviews can significantly boost an employer's reputation. An employer's reputation aids in attracting quality candidates and maintaining a great workplace culture. Companies can ensure positive reviews by prioritizing employee happiness. 

Research by Wills Tower Watson shows that operating margins improved nearly 4% on average in companies with highly engaged workers. This could be due to fewer sick days, higher productivity and creativity, better retention, or improved collaboration. Whatever the cause, higher profits are one reason businesses should invest in employee happiness. By promoting employee engagement and satisfaction, businesses can drive better results. 

Studies show employee happiness at work declined 10 times faster from 2020-2023 than 2016-2019. To avoid further decline, organizations should follow these 12 actionable steps for creating a happier workplace and improving happiness at work.

Open lines of communication are important to ensure team members' voices are heard. Transparent communication supports problem-solving efforts, leading to improved business outcomes. Create a company culture where employees feel heard and comfortable voicing their opinions. Workers shouldn’t be afraid to discuss their concerns in an appropriate manner with management. 

Key considerations include:

Who doesn’t like to be recognized and rewarded for their great work? Team members appreciate it when leadership or HR departments take the time to recognize their achievements. This recognition can boost morale by showing that a company values its contributions at all levels. When employees feel valued for their work, they're more likely to remain engaged and committed to organizational goals.

Key considerations include:

Professional development opportunities give team members the chance to upskill and grow professionally. Businesses can support employee happiness by giving back through professional development opportunities. For example, they can show team members they want to invest in their growth by offering workshops or providing education benefits that promote skill development. 

Key considerations include:

Work-life balance is essential to employee happiness. Team members want to be able to stop thinking about work once they log off or leave the building for the day. Remote work options can significantly enhance this balance by eliminating commute times and allowing more flexibility. A sense of balance allows employees to care for themselves and their families, prevents burnout, and supports a healthy workforce.

Key considerations include:

Organizations can create positive work environments by putting themselves in employees' shoes. Send feedback surveys to learn what your workforce values most. Then, integrate the top responses to foster an inclusive work environment. Team members want to feel safe, appreciated, and comfortable at work, whether in-office or through remote work setups. A strong culture helps them thrive.

Key considerations include: 

According to a study by Lattice, the number one driver of employee turnover was a lack of competitive compensation and benefits. To keep employees happy, offer competitive compensation and a robust employee benefits program. Surveying its workforce gives employers the insights needed to create benefits plans employees love. 

Key considerations include:

Coworkers play a key role in employee happiness. Supportive coworkers improve employee satisfaction and commitment to an organization. Organizations can foster meaningful coworker relationships to improve company morale and dedication. Additionally, work relationships between employees and their managers are an important source of happiness. Leaders should encourage employees to participate in collaborative projects and team-building activities to strengthen these critical relationships.

Key considerations include:

Employees value growth opportunities in the workplace. To facilitate growth, employers should prioritize knowledge exchange between colleagues and promote skill development. Organizations should also establish clear career paths that give workers visibility into their potential progression within the company. Professional development and training opportunities also empower employees to become more autonomous. Workplace autonomy supports higher creativity, accountability, professional growth, and more. 

Key considerations include:

Diversity, equity, and inclusion (DEI) initiatives ensure all team members have the tools and resources to thrive. Diversity in the workplace supports greater innovation, higher employee engagement, improved decision-making, and contributes to overall happiness in the workplace. It also helps create a healthy company culture to support employee happiness. 

Key considerations include: 

10. Listen to employee feedback

Gathering employee feedback is one thing; acting on it is another. Organizations should actively listen to employee feedback and implement changes that support workplace happiness. You should also regularly send surveys to collect and analyze feedback. After making changes based on feedback, reassure employees that their input was valuable and explain how it informed your decisions.

Key considerations include:

Social events allow many employees to connect with one another outside of normal working hours. Organize happy hours, game nights, or other events to encourage employees to get to know each other. When employees feel connected to their colleagues, they're more likely to collaborate effectively and enjoy their work environment. Well-planned events support peer interaction and employee happiness by allowing employees to engage with their co-workers. 

 Key considerations include: 

Organizations that show gratitude for hardworking employees make them feel valued. Workers who feel valued for their hard work and dedication will likely have higher job satisfaction. Employers should communicate their appreciation frequently to support employee happiness.

Key considerations include: 

Measuring employee happiness is critical to improving it over time. Employers should consistently measure happiness levels to gauge employee engagement and satisfaction. Building and maintaining a happy workforce requires regular assessment and adjustment of workplace practices. Several methods exist for measuring workplace happiness, including employee satisfaction surveys, pulse surveys, eNPS, and check-ins. 

Measure employee satisfaction using surveys that ask the right questions. Employee satisfaction surveys are designed to assess burnout, measure engagement, and identify areas for improvement in your business. You can boost employee satisfaction by measuring it to improve retention rates and lower turnover. 

Use our customer satisfaction survey template to gather feedback from employees today.

Organizations should conduct pulse surveys to monitor employee happiness levels at any given time. Pulse surveys are a quick way to collect feedback on employee sentiment regularly. These short internal surveys are sent much more frequently than a comprehensive survey. Use pulse surveys to monitor fluctuations in employee happiness levels over time.  

Conduct pulse surveys with our expert-written pulse survey template.

Employee Net Promoter Score® (eNPS) surveys take traditional NPS and apply it to employees. In these surveys, many employees are asked, “On a scale of zero to ten, how likely is it that you would recommend [Company Name] as a place to work? Measuring eNPS allows companies to assess employee loyalty and satisfaction.

Use our Net Promoter Score survey template to collect feedback on your organization.

Managers should hold regular one-on-one check-ins with their employees to monitor satisfaction and happiness. One-on-one check-ins are a great opportunity for employees to share their workplace concerns or ask questions about their roles. 

Send employee satisfaction surveys after conducting one-on-one check-ins to gather more relevant data.

Leadership teams set the tone for the workplace environment through their actions and attitudes, significantly influencing happiness. Managers and other leaders must understand how their roles broadly impact employee happiness. 

A leader’s positive attitude and enthusiasm rub off on team members. Leading by example is a huge way leadership teams can improve employee happiness. Positive leadership styles, such as inspirational, transformational, authentic, and servant leadership, have been shown to improve workplace happiness. To keep spirits high, avoid inducing too much pressure on your team and maintain a supportive environment.

Proper support and ample resources allow employees to thrive in the workplace. Without supportive leaders, team members may feel stuck or discouraged by their roles. Leaders can impact employee happiness by having an open-door policy, prioritizing their teams' overall well-being, and offering educational resources. Many organizations build educational resource libraries with training materials for employees to reference when needed. 

A company culture built on recognition and respect prioritizes employees. Leadership teams should foster this culture by recognizing employees for their successes. Use an employee recognition platform, achievement awards, or thank you notes to show appreciation. Also, build a culture of respect by speaking kindly to others and listening to their perspectives.

Good leaders are empathetic and strong communicators. Lead your team to success by communicating task assignments effectively and answering employees’ questions. Step into an employee’s shoes when managing difficult situations. Try to understand their points of view and listen to what they have to say.

Our recent workplace trends study reveals nearly half of in-office employees report increased workplace stress over the past five years. Employee happiness matters, from impacting profitability to better retention rates. The 12 tips we shared can help organizations improve workplace happiness and business outcomes. 

One of the most important parts of increasing employee engagement and happiness is acting on feedback. HR professionals can use an employee feedback platform like SurveyMonkey to glean insights and improve workplace happiness. 

These survey templates are critical to increasing employee happiness.

Sign up for SurveyMonkey today to get started.

NPS, Net Promoter & Net Promoter Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld.