What is Employee Happiness Worth to Companies

My first impulse: everything. Ok, maybe that’s a bit exaggerated, but by the time you get to the end of this article you should probably understand my initial impulse.

 Some fast facts

1. 40% of employees with low employee engagement scores said they were likely to leave their employers over the next two years, compared to 24 percent of traditionally engaged employees, and just 18 percent of employees with the highest “sustainable Employee engagement” scores, says Tony Schwartz, CEO of The Energy Project.

2. According to Dr. Thomas Wright, at Kansas State University, 100 unhappy employees cost $ 390,000/year in lost productivity.

3. Happy workers are 22% more productive than unhappy workers, says Andrew Oswald, professor at Warwick Business School.

4. Happy employees are also 28, 4% less absent. This means 12.3 days and $619/year per happy employee, according to Kathryn Rost, PhD at the University of Colorado Health Sciences Center.

5. Research by the Corporate Leadership Council found that engagement accounts for 40% of observed performance improvements, while highly committed employees try 57% harder, perform 80% better and are 87% less likely to leave than their disengaged colleagues.

6. A survey by Towers Perrin (2005) of over 85,000 employees working for large and mid-sized organizations in 16 countries found that companies with high employee engagement levels also experienced a higher operating margin (up to 19%), net profit margin, revenue growth and earnings per share (up to 28%) than companies with low employee engagement.

7. A Watson Wyatt (2006, 2008) study of 115 companies asserts that a company with highly engaged employees typically achieves a financial performance four times greater than a company with poor employee attitudes.

There isn’t a big, flashy number to be given here. The actual worth of employee happiness will vary from company to company, industry to industry and country to country. Yap, it may sound untrue, but money isn’t everything.

Employee happiness is worth your best employees. It’s worth not only your talent, but also your brand.

Employee Happiness Is Worth Your Talent

They are the people who made your company. They are the people who, day by day, through their dedication and capabilities, push your revenue numbers and drive profit.

They bring added value and they deserve to be happy at work. That is, if you want them to stay. Employee retention is intrinsically linked to employee happiness.

People want and should be recognized for their efforts and for their talent. Here’s an awesome debate on the subject.

Employee Happiness Is Worth Your Brand

If you are or strive to be a top insert number here company in your field of work, you need to understand employee happiness. Because if you do, you’ll see that it’s one of the most important brand elements that define your company.

Not just from a PR standpoint but also as an employer and as a competitor. If you’re the best, people should want to work for you and to work with you. But if word gets out that people are miserable working for your company, putting more money into advertising won’t fix that image.


Find out if people are happy in your company. What drives that happiness?

Make sure you’re constantly taking the pulse and acting on the feedback you’ve received.

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