Why Workplace Happiness is Becoming an Essential KPI in the UK

Priorities are changing, and now that more people are comfortable talking about their wellbeing at work, employees are simply not hanging around if they feel their employer is not providing the work environment that they need.

People between the ages of 24 and 44 are twice as likely to prioritise a good work-life balance over salary, so if businesses want to retain top talent, changes are going to have to be made.

What Does Workplace Happiness Look Like?

Workplace happiness goes much deeper than somebody liking their job. It is a reflection of how employees feel they are treated at work, how much opportunity they have to grow, and how much purpose they feel every day.

With only 51% of employees saying they often feel happy at work, it is clear that there is still a long way to go for businesses across the country.

If an employee spends every day turning up to work, carrying out the same routine tasks, and feeling as if they are invisible at work, it is bound to have a big impact on their happiness. Everybody should have an opportunity to get involved and grow within their role, allowing them to become part of a team that works together to achieve results.

The more employees interact with their colleagues and collaborate on projects, the more they are going to build strong working relationships. This is a huge contributor towards workplace happiness as it creates a sense of belonging and gives people a support system at work.

Another key part of workplace happiness is a strong work-life balance. If people are able to switch off after work and then spend the rest of the day unwinding by spending time with loved ones or getting stuck into their hobbies, they are naturally going to feel more refreshed and ready to get stuck back into work the next day.

How a Happy Workforce Can Benefit a Business

Having happy employees benefits more than the employees themselves. Many business owners fail to realise just how much impact it can have on the business as a whole.

Let us discuss some of the key business benefits of workplace happiness.

Lower staff turnover. If losing and replacing employees is a common occurrence within a business, it can be an incredibly costly process and creates a lot of disruption within a team. Focusing on retention instead of replacement is a mutually beneficial approach and helps build a stronger team dynamic. If employees want to stay longer, businesses are able to spend the money they save investing back into the development of their team.

Better company culture. If a workplace has positive energy and a good community feel, it is naturally going to be a much more enjoyable place to be. As relationships build and colleagues support each other, employees are going to feel more motivated to go above and beyond and maximise their productivity for the benefit of their team.

Improved customer service. Workplace happiness is also visible outside of business walls. A happy employee is much more likely to deliver a better customer experience to clients, adopting a more engaging approach and being more pleasant to have a conversation with. This can help build a strong brand reputation and encourage repeat custom.

More creativity. Having a supportive work environment that encourages everyone to get stuck in means employees are bound to feel more comfortable coming forward with new ideas. If employees feel comfortable and valued at work, they are more likely to discuss unique ideas that they otherwise would keep to themselves. These creative risks are often a great way for businesses to stand out from the crowd and get noticed.

Measuring Employee Happiness as a KPI

Employee happiness may initially seem like an impossible thing to quantify, but in reality, it is something that businesses are definitely able to keep a measure of.

One of the first metrics to keep an eye on is absences. Nowadays, 35% of workers say they have needed time off work due to stress, so if a business is seeing a rise in their absence rates, it could be a big sign that employees are being overworked.

Another good metric to look at is productivity. Many HR and project management tools generate automated reports that show how long tasks are taking, where holdups are coming from, and how individual employees are progressing. Keeping a lookout for any downward trends can identify any potential problems before they have time to worsen.

Not many businesses consider that measuring workplace happiness can be as simple as asking employees directly. Whether this be through one-on-one appraisal meetings, employee satisfaction surveys, or anonymous feedback forms, the responses can provide invaluable insights straight from the employees themselves.

Making Workplace Happiness a Priority

Businesses have always wanted to keep their employees happy, but now more than ever, they are beginning to realise that this requires some core changes.

Employees are striving to find workplaces that support their growth, listen to their thoughts, and understand the importance of a good work-life balance, and if they are not finding it, the search continues.

For businesses, keeping an eye on the metrics can help them know where they are going wrong. Monitoring any trends and seeking feedback directly from employees will reveal any deeper issues that can be addressed to improve workplace happiness going forward.