In a time where businesses are increasingly judged not just by their profits but by their purpose, creating a thriving workplace has become both an art and a science. Data increasingly shows that workplace happiness is measurable, manageable and, when prioritized, transformational for both individuals and organizations.
What the Data Shows About Workplace Happiness
Research from a wide range of organizations and industries reveals clear, consistent patterns that drive employee satisfaction—and, in turn, company performance. Global employee happiness is currently at 73 percent, meaning that over a quarter of the world’s workforce is unhappy in their current role. If we look at the Wellbeing Risk score, we see that globally, 26 percent of employees have a risk to their wellbeing directly through their job. This could be a physical or mental health risk. Our data at WorkL reveals that reward, recognition and wellbeing directly correlate to happiness in the workplace. If these areas are positive, the happiness score is high. These measurements are part of a bigger guide we have created from years of research and data points to showcase what makes a happy employee.
Six steps to workplace happiness
1. Reward and Recognition
Every member of an organization should benefit from its success. A fair salary is essential—no amount of praise can compensate for underpayment—but research shows that reward and recognition are most effective when authentic, individualized and from the top. Twenty-four percent of employees surveyed by Gallup feel recognition is most memorable when it comes from their organization’s CEO.
2. Information Sharing
Withholding information can make employees feel undervalued and disconnected from the business. Transparency is essential for a team to perform at its best. It strengthens trust, engagement and performance at every level. Companies with knowledge-sharing cultures report improved collaboration and communication, reduced training costs, increased institutional knowledge and greater rates of innovation and solution-finding.
3. Empowerment
Empowering employees means involving them in decision-making, valuing their ideas and integrating their feedback into the company’s strategies. Everyone brings unique experiences and perspectives to the table, and only by considering all views can a team achieve the best possible outcome. Employee empowerment has been shown to encourage the pursuit of new skills, boost creativity and increase organizational commitment.
4. Wellbeing
Employee wellbeing encompasses physical, emotional and financial health. According to MindShare’s Mental Health at Work report, 76 percent of workers report at least one symptom of a mental health condition, and 84 percent of respondents felt their jobs contributed to at least one mental health challenge. A positive workplace culture can reduce absenteeism, as engaged employees tend to be healthier and more committed.
5. Instilling Pride
Employees who take pride in their work and workplace naturally become advocates, sharing their positive experiences with colleagues, potential hires, customers and the community. Their pride will be evident when they talk about where they work. Pride grows in cultures where employees feel authentically connected to the company’s purpose and success. It typically presents in three layers: pride in the work, the team and the company. Proud employees are six times as likely to recommend their company to others and twice as likely to remain with their company for years to come.
6. Job Satisfaction
Many factors influence job satisfaction, but two stand out: opportunities for personal growth and the quality of the employee-manager relationship. Employee engagement is essential for success. Research shows that respectful treatment and trust between employees and leadership are key drivers of satisfaction. Poor relationships with managers are often why employees leave, regardless of the company’s brand strength. Beyond relationships—and more than compensation, retirement programs or healthcare benefits—over 60 percent of employees report that paid time off is the most important factor to job satisfaction.
Each of these steps is measurable, and improvements in any one of them correlate directly with higher productivity, lower absenteeism, better financial performance and happier employees. Data also shows that employees supported in their overall wellbeing are twice as likely to report workplace happiness and are far less likely to experience burnout.
Stress: The Silent Productivity Killer
While short-term stress can be motivating, chronic, unmanaged stress damages both individuals and organizations. WorkL’s data reveals that when employees experience sustained high levels of stress without sufficient support, several alarming patterns emerge:
- Engagement scores plummet
- Employee resignations rise sharply- we call this Flight Risk
- Instances of sickness and absenteeism double
- Customer satisfaction often drops, as unhappy employees are unlikely to deliver exceptional service
A Moral and Commercial Necessity
The science is clear: a happy workplace is not a “nice-to-have.” It is an absolute necessity for those who wish to attract and retain the best talent, serve their customers better and thrive. Leaders must embrace employee happiness and take steps to drive action and positive change in the workplace. Those who do will not only build better businesses but also leave a legacy of workplaces where people can truly flourish.
Lord Mark Price is the founder of WorkL and WorkL for Business, and author of Happy Economics: Why The Happiest Workplaces Are The Most Successful (published by Kogan Page)