Want more sales? Have happy employees02 Oct 2017
Happy, productive employees
There’s plenty of evidence around relating to the link between employee engagement and productivity. A study from the University of Warwick suggested that happy employees were 12% more productive. The research was carried out by Professor Andrew Oswald, Dr Eugenio Proto and Dr Daniel Sgroi from the Department of Economics at the University of Warwick. Professor Oswald said: “Companies like Google have invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37%, they know what they are talking about. Under scientifically controlled conditions, making workers happier really pays off.” Dr Sgroi added: “The driving force seems to be that happier workers use the time they have more effectively, increasing the pace at which they can work without sacrificing quality.”
Happiness and your bottom line
When it comes to the impact of employee happiness on sales, research by the Hay Group found that organisations scoring within the top 25% for employee engagement achieve 2.5 times the revenue growth of organisations in the bottom 25%. The Hay Group reported more evidence of the positive impact of employee engagement, finding that high engagement levels can reduce employee turnover by 4%, which reduces recruitment costs. It also found a direct link between employee engagement and customer satisfaction, suggesting that employees who are happy at work will often go the extra mile when it comes to customer service (backing up the theory behind the title of this blog!).
Valuing your people
The key to employee happiness is balancing the value that you place on your employees with the value that they get out of working for your organisation. If your business plan includes a strategy for valuing people and ensuring the happiness of employees, the benefits could be huge. For example, more ideas, greater commitment, improved customer service and, ultimately, better productivity that will help to gain a competitive advantage.
If working for your organisation creates a valuable experience for your employees, they are more likely to remain loyal and put in extra effort. The result of that extra effort is an employee whose value to your organisation far outweighs their cost.
This may sound like the holy grail of employee relations, but it really doesn’t require complex or expensive investment in new ways of working. What it does rely on is wholehearted support from your senior leadership team, through their vision, leadership and communication.
Team up with INSPIRING
INSPIRING provides valuable, practical advice for organisations who want to improve employee engagement or look more generally at achieving performance improvements. Take a look at our employee surveys, leadership programmes or find out more about BS 76000 – the British Standard for Valuing People. Get in touch using the form on the left, email us or call us free on 0800 612 3098.