Numerous studies and research have indicated that happy employees have a positive impact on a company’s profits and overall success. Here are some statistics that help to highlight the correlation between employee happiness and increased profitability.
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Productivity Boost: Happy employees are more productive, which directly affects the bottom line. According to research by the University of Warwick, happy employees are 12% more productive compared to their unhappy counterparts.
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Reduced Absenteeism: Content and satisfied employees are less likely to take unscheduled leave or sick days. The World Happiness Report suggests that happy employees have 10% fewer absences from work.
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Employee Retention: Companies with higher employee satisfaction rates experience lower turnover rates. The cost of employee turnover can be significant, with estimates suggesting it can range from 30% to 150% of the employee’s annual salary. By fostering happiness and engagement, companies can reduce turnover costs and retain talented employees.
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Customer Satisfaction: Happy employees tend to provide better customer service, leading to increased customer satisfaction and loyalty. Research conducted by Gallup reveals that companies with highly engaged employees outperform their competitors by 147% in earnings per share!
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Innovation and Creativity: A positive work environment that prioritises employee happiness fosters innovation and creativity. According to a study published in the Journal of Applied Psychology, happy employees are more likely to engage in creative problem-solving and generate innovative ideas.
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Enhanced Collaboration: Happy employees are more likely to collaborate and work effectively in teams. Effective collaboration leads to improved decision-making, increased efficiency, and better overall performance, all of which contribute to higher profits.
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Employer Branding: A company known for its happy and satisfied workforce attracts top talent. Positive word-of-mouth from employees can significantly impact a company’s employer brand, making it easier to recruit and hire high-performing individuals.
We know that there are lots of factors which contributes to company profit and success but at FAB HR we believe that these links between how people feel at work and how they behave and perform are strong indicators of a business’s potential success.
If you would like to measure the happiness of your employees and explore how you can help boost this even further, get in touch to find out more because we know that good people make great business!