Improving Company's Performance by Starting a Happiness Unit: Analytical Essay

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As per Deloitte’s 2017 Global Human Capital Trends “a productive, positive employee experience has emerged as the new contract between employer and employee.”

Research studies have shown that productivity and happiness are integral part of company’s success. According to a research, The stock prices of Fortune’s “100 Best Companies to Work for” increase by 14% per year from 1998 to 2005, on the other hand the companies not on the list only reported a 6% increase. Survey showed that this tremendous difference in stock price happens because the companies actually perform better.

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Happiness and Productivity

Happiness increase productivity as it leads to higher engagement that is, higher attendance of employees daily. More the presence, more is the attention given to the needs of customers/clients. It also results in being more alert of the company’s processes and systems. All these factors come together to bring organisations increased productivity and profitability.

Happiness increase loyalty and decraese the turnover ratio

Happy employees are more resilient. They stay with their employers for a longer term. A lowered turnover saves time and money that could have been spent on hiring and training new employees other wise. A recent survey from Boston Consulting Group has found; ‘most people want just one simple thing from their jobs: appreciation for their work. Who bothers looking for another job when they enjoy the one they have and are appreciated there?’. Thus, when operations of the business continues without any slow down or breaks, productivity ultimately increases.

Happiness increase quality of work

Happy employees make it a point to show up to work and do not feel reluctant to do even more work. It is easier for them to go above and beyond what is expected of them and put in those precious overtime hours that increases both quality and quantity of the work done.

Happiness encourage learning

Happy employees create a supportive environment in the workplace. Such environment encourages everyone to learn from their mistakes rather than fear them. As mistakes are one of the most powerful learning tools that can open the door to unforeseen success. Employees who are afraid to make mistakes miss out the important learning opportunities.

More the Happy Employees; More the Money Business makes

Dr. Noelle Nelson, a psychologist and author of ‘Make More Money by Making Your Employees Happy’ said ‘When employees feel that the company takes their interest to heart, then the employees will take company interests to heart,’

Happiness results in better customer service

People for sure, like happy people. Specially, when it comes to customer services, business has to be cheery. If the employees’ morale is high, customer interactions reflect it. For customer service-based roles happy people are the perfect people.

‘Developing a Happiness Unit’

The significance of having happy employees, though, is not completely encompassed, still for sure it can be stated that in order to improve company’s performance it is indeapensible to have a mechanism of keeping the employees happy. For this purpose developing a Happiness Unit is the best way to go.


The goals of the ‘Happiness Unit’ are:

  • Increasing job satisfaction by listening and resolving the employees’ job related and work ethics related issues
  • giving ‘on the job training’ sessions to increase workers confidence and keep them motivated
  • monitoring employees’ performance and giving appraisals
  • celebrating achievements
  • recognizing and encouraging innovation
  • Equipping the employees with all necessary tools and systems that can make their job easier and hence improve job effeciency.


The above mentioned goals of the Happiness Unit can be achieved in the following ways:

-Assigning company values

Based on a peer-voting process, every month one of the company’s value can be assigned to the person who best represented that value. He can be set as an example and be publicly acknowledged and appreciated for his actions. It will motivate the employees to abide by the rules of the company and work selflessly.

-Having themed office days

Once in a week having a themed day bring a lot of fun and increase employee loyalty. It also boosts up employee morale and kills monotony at work.

-Having photos of the High Acheivers

It is a cultural element that encourages and foster work relationships and employee engagement.

-Celebrating achievements and people

Recognition and celebrating thehard work of the employees is a proof that the work people are putting in has meaning as no one can go through tasks and assignments without burning out. Celebrating Birthdays, promotions, retirements, newcomers welcoming can refill thier energy tanks.

-Giving and receiving feedback

A system can be devised that employees can use with confidence and honesty. With the help of this system it can be conveyed that company value their opinion and, most importantly, act on that feedback.

-Being receptive to the employee preference

Asking staff their advice while shifting the business or if any area seems to need more help or attention. Moreover, askinb them if they’d like to learn something new or improve their skills in a designated area will motivate them to work harder and do the job well.

-Allowing workplace flexibility

It is important for employees to be on time and to complete all tasks in a timely manner to keep the business flowing. Yet it is equally important to show respect at work, employers should respect that their employees have a life outside of work as well.


Happiness is no longer a personal matter; rather, it is a workplace issue where employers and the corporate environment plays an important role in specifying how productive or unproductive the employees can be.

Strong company culture is important in helping productivity and creating a happy workforce.

Happy employees raise work productivity and create happy, satisfied customers.

When employees are not happy they put in minimum effort to avoid being fired and sometimes they can even sabotage the entire company.


  1. Ainimugisha, Gerald. 5 Great Reasons Why Happiness Increases Productivity.
  2. Clapton, Paula. 25 Employee Engagement Ideas.
  3. Team Local wise. 21 Effective Ways to Keep Employees Happy and Productive.
  4. Heathfield M, Susan. (2019, March 06). How Happy Employees Make Your Business More Productive.
  5. Preston, Camille. Ph. D. PCC. (2017, December 13). Promoting Employee Happiness Benefits Everyone. Promoting Employee Happiness Benefits Everyone
  6. Irwin, Paula. (2018, January 24). Does Productivity Affect Happiness?.
  7. Burton, Damon. (2018, January 10). Happy Employees are good for business.


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