How Can Employers Harness the Power of Happiness?

Many studies have shown that employee happiness is linked to their productivity – the most famous of these studies citing that employees are around 13% more productive when they feel happy at work.

Employee happiness seems to be becoming a rising concern to employers; only a few months ago did Chinese company Pang Dong Lai make history by introducing ‘unhappiness leave’, a new form of paid time off where employees could now request an additional 10 days off if they were not feeling happy. Whilst this indicates care for their employees’ mental wellbeing, it doesn’t actually get to the root of the problem…that is, what is making them unhappy in the first place?

This is where having some real-time data around the happiness of your employees would be so beneficial. But how could an employer go about obtaining this? How does one ‘measure’ happiness?

Traditional methods of assessing employee well-being – such as annual surveys or exit interviews – are often outdated by the time they are analyzed. What employers need is real-time tracking which will allow them to gain insights into the current mood and morale of the workforce, enabling proactive interventions before issues escalate – and foregoing the need for unhappiness leave in the first place.

One of the most effective ways to track employee happiness in real time is by leveraging technology-driven tools that are specifically designed for this. For example, let’s take a look at a platform pioneered by Matt Phelan – the Happiness Index.

The Happiness Index measures employee sentiment by focusing on two key areas: Happiness (emotional wellbeing) and Engagement (purpose and motivation). Employees provide regular feedback through simple pulse surveys, and the system aggregates and analyzes this data to identify trends and areas for improvement.

By utilizing AI-powered sentiment analysis, the Happiness Index provides real-time insights, allowing HR teams and leaders to track fluctuations in employee wellbeing. In a nutshell, it helps businesses understand what’s working and what’s not, based on genuine employee sentiment rather than blind guesswork.

There are then multiple ways that this data on employee happiness can be used for the betterment of your business:

• Enhancing Workplace Culture – data on employee happiness helps businesses identify what contributes to a positive workplace culture. If employees report feeling stressed or disengaged, initiatives can be implemented like wellness programs, flexible work arrangements, or leadership training to improve workplace dynamics.
• Reducing Turnover – real-time happiness tracking allows organizations to spot signs of disengagement or dissatisfaction early. When employees consistently report low happiness scores, the underlying issues of this can be investigated and corrected to avoid the loss of top talent.
• Boosting Productivity and Innovation – as evidenced above,employees who feel happy and engaged are more likely to be productive and innovative. By continuously monitoring happiness levels, organizations can adjust their work environment to encourage peak performance (for example, redesigning office spaces to make them more complimentary to hybrid working).
• Personalizing Employee Experience – just as businesses personalize customer experiences based on data, real-time employee happiness tracking allows employers to tailor experiences for their workforce. Whether through customized learning and development opportunities or individual wellbeing support, organizations can create a more employee-centric workplace.
• Strengthening Leadership Effectiveness – leadership plays a crucial role in shaping employee happiness. By using real-time feedback, managers can gain insights into how their leadership style affects their teams and use this to adapt their management techniques.

Ultimately, investing in employee happiness isn’t just about making work enjoyable – it’s about fostering a sustainable and high-performing organization. Tools like The Happiness Index provide employers with the insights they need to make data-driven decisions that help to ensure sustainability, as well as improve the livelihoods of their teams.

If you would like to discuss how we can help unlock employee happiness in your organization, please get in touch with me at andy@orgshakers.com