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We’ve all heard the adage saying that a happy employee is a productive employee. But did you know that happy employees tend to be 20% more productive than unhappy workers? Many employers may take this for granted. But keeping your employees comfortable is one of the best ways to ensure that they are motivated to work.

Here, we’ll discuss the reason why a happy employee is a productive employee. Keep reading, as we’ll also share reasons why employee productivity matters. It doesn’t end there – you’ll also learn how to make your employees happy. 

Why Does Employee Productivity Matter?

Employee productivity is the backbone of any workplace. It is the engine on which the business thrives. Productive workers focus on the right things at the right time. They don’t waste their time or effort doing things that don’t matter. Instead, they tend to focus on things that will help generate the desired results.

The more resourceful your employees are, the more chances your company will succeed. But one of the fundamental factors that increase employee productivity is happiness. Since happiness fosters productivity, companies must find ways to keep their workers driven.

One importance of this is that it improves customer service. There is no doubt that top-notch customer service is among the success drivers of a firm or company. The happy staff offers the best customer service when necessary. Interestingly, this leaves a positive impression in your client’s mind and make them return for your products and services. 

Happy employees are more productive as they maintain a positive gesture regardless of customers’ attitudes. Also, they perform their duties without excess buying pressure on customers. In addition, productive employees do post-sales follow-up with customers.

10 Key Reasons Why a Happy Employee Is a Productive Employee

successful company with happy employees in modern office


  • Keeping the employees engaged

Happy employees tend to be more engaged in their workplace. They are known to be more energetic, passionate, and innovative. Also, they display a rather high level of engagement. Additionally, such employees take ownership of their careers and focus more on growth. This is because they are passionate about excelling.

Since many CEOs know that a happy employee is productive, they ensure a pleasant workspace. One way in which they achieve this is by maintaining open communication lines. As a result, employees feel more comfortable at work. And this leads to better company outcomes.

  • A higher rate of retention

Employees who are happy with their jobs and work environment are likely to perform well. This leads to a higher retention rate than sectors that fail to provide a pleasant arena. Also, to keep employees, HR should work towards increasing an employee’s scope of work.

This should be further augmented by periodic training or coaching. It will help employees carry out their work in the best possible manner. Happy employees can then train new staff who are getting started to maximize their value.

  • Boosting creativity

Organizations with an innovative or creativity-driven culture will always look for innovative employees. Being happy with your existing work environment will help employees be creative. As a result, employees end up freeing space in their brains to develop more ideas. Happiness also raises employees’ mental flexibility, increasing their chances of creating something new. 

Generally, happy employees are more likely to contribute to the organization’s success. This is because while unhappy staff loves to play safe, the happy ones take risks. However, their risks are calculated and geared towards boosting the business. Happy employees may even sit with the rest of the team and work on the company’s long-term goals to see the company flourish.

  • Promotes employees’ mental and physical health

According to the occupational safety and health administration, employees who are required to work long hours or are asked to work irregular shifts often end up stressed, tired, or even burned out. This leads to unexpected illnesses and injuries. Many studies today show how work stress and fatigue contribute to health issues. A few include sleeping disorders, heart diseases, and even depression.

On the contrary, employees who are happy at work are physically fit. Also, they are more energetic with mental clarity, allowing them to perform and display their best version. This leads to employees taking fewer sick days and reduces absenteeism. 

  • Improved decision-making skills

An employee that is unhappy at work will most likely be in a constant state of tension. This reduces their focus leading them to make mistakes and even incorrect decisions. But happy employees portray better decision-making skills. This is because they are well-informed about the company’s vision and goals. Also, they work under strong leadership. 

As a result, these employees strive in the same direction in which the company’s goals are planned. They are not overwhelmed when important decisions need to be made. Instead, they are optimistic and embrace responsibility.

  • Encourages honesty

Happy employees are also not afraid of honesty. They express their opinion and agree or disagree with their leaders when sharing their opinion on a product or an idea. Such employees enjoy an environment where they aren’t hesitant to voice their concerns. This is because they know that their boss trusts them to reconsider the proposed strategy or idea. 

Honesty and transparency give the employee the satisfaction of voicing their opinion. This helps keep everything at the workplace in perspective.

  • Strong-armed to handle adversity

Every individual tends to go through some form of adversity at their workplace. But like in any other area of life, happy employees are not afraid to learn from their mistakes. They try not to repeat them. Every business goes through ups and downs. Likewise, happy employees are not afraid to face difficulties and stressful situations. They can also deal with problems that may seem beyond their control.

  • Boosting sales

According to reports, unhappy employees can cost American businesses over $300 billion yearly. However, if an organization consists of happy employees, it boosts sales. This is because of the positive outlook towards work which develops in employees when they are satisfied. Hence watching out for whether your employees are always smiling, engaged, and productive helps greatly. It identifies an employee’s job satisfaction and how happy he is at his current job.

  • Endorsing opportunistic mindset 

One of the key reasons a happy employee is a productive employee is that they feel supported and reassured. As a result, they start believing in themselves. Hence, when these employees face new opportunities, they aren’t hesitant to grab them. Their optimistic outlook allows them to spot opportunities in unexpected areas. 

Also, their self-confidence keeps them motivated. As a result, they are driven to push themselves to reach new heights in their career. This increases their job satisfaction and happiness. Such an air of optimism is usually found in organizations that promote creativity and innovation. It also endorses transparency and diversity.

  • Helps in inspiring others

When provided with the right working arena, happiness can spread across a team. The happier employees are in a company, the more productive they are likely to be. This also results in happier bosses. New employees will also sense this positivity in an organization’s culture. As a result, they will be inclined to follow the lead of old workers.

Employees who find joy in their work become role models for others. They can inspire and encourage colleagues to find the same pleasure and passion. Moreover, happy employees can think big and start treating their co-workers right. This way, they set an excellent example for other co-workers.

How to Make Your Employees Happy?

happy employee

Whether you are the CEO of a company or the HR manager, there are several ways to make employees happy. Below are a few techniques that you can use to ensure that employees remain happy and productive.

  • Steering clear of bullying

Bullying can often get out of hand before you even realize it. It damages employee happiness and can be detrimental to a workplace environment. Also, it causes strain on employee productivity and well-being. So, to ensure that your employees remain productive, look for possible bullying signs. Get rid of it right away before it causes any severe damage to your company’s environment.

  • Evaluate your staff salaries

Another critical area to focus on is your company’s pay structure or care package. Identify whether the pay structure is market competitive enough to motivate your employees. Since we all work to earn a livelihood for our families, poor payment can often demotivate employees or make them unhappy. 

So, if you have control over your department’s budget, exercise that power to do right. Also, you can speak to someone with authority so that your company’s employees are paid well.

  • Harnessing the power of adequate feedback

Many managers and team leaders don’t provide negative feedback to their employees. This is because they are hesitant and worried about making employees unhappy. These team heads don’t realize that failure to provide feedback can be detrimental. It can only result in building doubt and frustration among them. 

Whether you are part of the top management or a team leader, it is crucial to provide regular feedback. You can also support your employees with constructive advice. This advice will help your employees learn what they are doing wrong. It also equips them with the knowledge to improve themselves.

  • Remembering to reward employees when they excel

Often, team leaders and managers tend to be so focused on worrying about their career growth. This makes them overlook their employees. Good leaders look forward to seeing their employees perform well and break all records. To do so, leaders must strive to encourage their employees who outshine others.

They must help hardworking, dedicated workers get the right promotions they deserve. This, in turn, will help the employee work harder than before and set an example for others. As a result, your other employees will be motivated to strive for future promotions.

  • Remain courteous and pleasant

We’ve often heard motivational speakers stressing the importance of remaining courteous and pleasant. But many of us, even those at the top management level, take this for granted. As basic as this may seem, maintaining a courteous and pleasant demeanor with your employees can foster happiness.

A happy employee is productive, so a simple tweak in your outlook can increase your business. So, try to remain friendly and approachable with your employees. Also, ensure they are comfortable enough to share anything with you without hesitance.

  • Flexible working hours

Employees have other activities asides from work, and this is normal. These activities range from checking on their kids to medical checkups and even lunch. They are basic needs that one must give attention to. Therefore, you must structure your employees’ working hours to be flexible to meet these needs. If it is possible for your staff to work remotely, then give room for it. This will help reduce stress and save time. 

  • Play and fun

While it is vital to get the office work done, it is also crucial for employees to unwind. Therefore, create time for fun and community building. It is a good way for workers to relax and facilitates healthy bonding among them.

Another way to make your employees happy is to celebrate their birthdays. Everyone knows how special their date of birth is. Hence, you can choose such a day to make your employees happy. 


Retaining productive employees is crucial to the success of any organization. But employees don’t become productive on their own. Businesses must find ways to promote productivity in the workplace. One sure way of doing so is by promoting happiness.

The path to happiness is never a straight line. Every organization must create a unique plan focusing on employee health and happiness. This is because a happy employee is a productive employee.