Happy employees are 12% more productive than unhappy ones

Worker recruitment and retention continue to be top of mind for many employers in the new year. Although employees value competitive salaries and benefits, the things that matter most often can’t be measured in dollars and cents.

Human connection and physical and emotional wellbeing are top priorities for happiness in 2024, according to a new survey conducted by Wondr Health, which works with health plans and employers to improve clinical outcomes and reduce health care costs. The survey asked nearly 500 people around the world what brings them the most happiness. The top responses are:

• Close relationships and human connection, including spending time with family, 30%;
• Physical and emotional health and wellbeing, 21.5%;
• Engaging in activities that spark joy, 17%;
• Financial freedom, 12%;
• Helping others in need, 11%;
• Career satisfaction and fulfillment, 8%; and
• Other, 0.6%.

The survey findings are consistent with an 85-year-old study from Harvard University that found that close relationships are the key to happiness and health. And when workers are happy, their employers share in the benefits.

A growing body of research shows that happy employees are more likely to be productive. One study from the University of Oxford found that happy employees are 12% more productive than unhappy ones. In addition, happy employees are more likely to be engaged in their work and feel a sense of purpose. This leads to higher levels of focus, concentration and ultimately, productivity.

“This survey points to the need for a comprehensive benefits strategy for overall health,” said Dr. Tim Church, chief medical officer for Wondr Health. “By providing employees with skills and tools that improve their quality of life and physical and emotional health, employers can help cultivate happiness among their population to ultimately engage employees, boost performance and enhance job satisfaction and retention.”

As organizations face the challenge of retaining a satisfied and engaged workforce in the new year, they must prioritize their employees’ needs more than ever, Isaac Kohen, founder of the behavior analytics company Teramind, wrote in Forbes.

Related: Remote workers report being happier, healthier, and more productive

“By adopting a holistic approach to employee welfare that includes optimizing work-life balance through data analytics, investing in skill development in the face of technological advances and creating a culture of appreciation, businesses can foster a thriving environment,” he wrote. “These steps are not just beneficial for the employees. They are essential for the sustainability and growth of the organizations themselves as we move forward into 2024.”