How Happy Employees can lead to a more profitable business

Posted 28 Nov '22

This blog has been prepared by one of our team who really wanted to share her experience from working at Empire and how she can see firsthand a happy employee translates to a happy workplace and ultimately better performance for the business. Big thanks to Aiko for the time spent to prepare this!

We’ve all had those jobs. You know, the jobs that make you watch the clock the entire day. The ones where you dread showing up to work, whether it be because of the negative culture, sour boss, unnecessary pressures or unrealistic goals.

We are sure no business owner sets out to create an unbearable work environment, so the question is how does a negative workplace environment develop? Over time, ineffective management, focusing on the wrong priorities and setting unrealistic productivity demands can create a heavy and toxic space. This space can lead to an unhappy workplace and ultimately unhappy employees.

Studies have shown that hosting a positive work environment can work wonders on a business’s productivity and employee retention rates. Having happy employees is the first step to establishing a business capable of growing and thriving.

Importance of Positive Workplace Culture

We spend more time with our colleagues than our families. Let me say that again; We spend more time with our colleagues than our families just to make sure it sinks in (unless you marry your business partner of course 😉).

It is up to management and business owners to serve as a liaison between staff and a healthy workplace. In a study analysed by Oxford, it was discovered that “workers are 13% more productive when happy.”

Pressuring, stressing, and degrading employees to try and force productivity isn’t the route. In fact, this can lead to unhappiness and have detrimental impacts on your staff’s productivity. Instead, try to encourage the following behaviours to promote a stress-free workplace.

Characteristics of a Positive Workplace Culture:

• Caring: Management showing interest in employee lives, hobbies, etc. and encouraging the same for each other
• Support: Showing kindness, compassion, and empathy during tough times and also celebrating each other’s successes
• Forgiveness: Understanding that mistakes happen and avoiding blame
• Inspire: Drawing inspiration from each other’s accomplishments and using it as fuel to work harder
• Respect: Showing integrity and respect while communicating to and about colleagues and showing gratitude for the hard work they perform

Happy Staff Perform Better

People who feel content and safe in their roles are happier. Employees thrive when they know their colleagues and boss are there to support them. Therefore, they’re more willing to go above and beyond for the company when they feel celebrated and cherished.

Happy people are more creative and better communicators. This is because happy people are more inclined to express their ideas and communicate what they think, knowing their ideas are always valued.

Improves Staff Retention

Did you know that “it takes from five to eight months for a newly hired employee to reach full productivity” (Human Panel)? That’s a long time to pay someone as they are being trained to perform their job to perfection.

Now, imagine scaring off new employees before they reach their 1-2 year mark with the company. Shockingly, Enrich reported that, “on average it costs a company 6 to 9 months of an employee’s salary to replace him or her.”

The key to saving the company money through employee retention is to hire quality staff and make an effort to build a positive workplace culture. More so now than ever, employees are checking on company retention rates before they apply as this is a great indicator of how well the company treats its staff.

Walk The Talk

Establishing a positive workplace culture is one thing. However, it is essential for owners to encourage cultural engagement amongst their staff. This means that all colleagues are accepted and enticed to form professional relationships with their colleagues.

According to EHS Today, “disengaged workers had 37% higher absenteeism, 49% more accidents, and 60% more errors and defects.” Keep your employees engaged by paying them the wages they deserve, providing flexibility, and ensuring they receive the time off they need to recuperate and refresh their minds.

As a business owner, it’s time to walk the talk. If you claim to have a flexible, friendly, and supportive workplace environment, make sure that’s the reality for your staff. Check out these additional ways to show your employees that they are valued:

Staff Appreciation Methods:

• Regular Training Opportunities
• Team Bonding Activities
• Staff Outings
• Office Drinks, Snacks, Celebrations
• Fun and Lighthearted Office Environment
• Open Communication
• Competitive Pay
• Regular Praise

Get to know your employees on a whole different level by having them take the 16 Personalities Test. Employers often use this test to create teams and place staff in roles where they will thrive as professionals. It is also useful to get to know your team on a deeper level and understand the most effective way to communicate, know who would work well together in a team or know what not to do if you want to get the most out of your employee.

Here at Empire Accountants, we are committed to helping you achieve the successful business you’ve always dreamed of. This does extend further than just the numbers, and we are big believers in fostering a positive work culture to lead to ultimate business success.  If you want help in this space, we can recommend some referral partners to help support you if you are not sure where to start in building a happy workplace!