The management of corporate happiness

The pursuit of happiness has been a constant throughout human history. However, the priorities of each generation and the concept of happiness have changed over time. During the Industrial Revolution, workers placed survival at the top of their priorities, often working endless hours. In the Technological Revolution, we saw a generation that prioritized having a “good job,” a “good house,” and a “good car.”

Now, we’ve reached a new generation that brings with it a different dynamic. We are all looking for something more… Seeking a sense of purpose, a greater meaning, HAPPINESS. This means that, just as we search for happiness in other areas of our lives, we also look for it in the workplace—a safe space where it makes sense to spend eight precious hours of our lives. After all, 30% of our day is spent working, so we should strive to be as happy as possible during that time!

Recently, at Happiness Camp, Europe’s largest conference on corporate happiness, we had the chance to hear Sunaina Kohli from Asos speak about the concept “discover the why”: Understanding our “why” allows us to get closer to understanding our own motivations and actions. It helps us align our life choices, values, and goals, which eventually brings us closer to happiness and success.

On the other hand, when we distance ourselves from those same choices, values, and goals, we feel more stressed and anxious. Although stress is normal, healthy, and adaptive, extreme and recurring stress can become incapacitating and have an overwhelming impact on our well-being. “Stress is like fire. Burnout is a house on fire” (Subira Jones, at Happiness Camp).

Why should companies invest in employee happiness?

The positive impact of happiness at work, both for employees and companies, has been extensively studied in scientific literature. Research shows that happy workers tend to experience greater emotional well-being, lower stress levels, and a better quality of life. This leads to better mental health and, consequently, reduced absenteeism and lower employee turnover, resulting in substantial savings for companies.

Workplace happiness is also closely tied to employee motivation, commitment, and productivity. When employees feel valued and satisfied with their work environment, they tend to be more productive, efficient, creative, and innovative. Moreover, happy employees are more likely to collaborate effectively, fostering a positive work climate.

From a business perspective, investing in employee happiness is not just an ethical decision but a strategic one. Companies that promote a positive work environment and care about their employees’ well-being are more likely to attract and retain high-quality talent.

How can a company promote corporate happiness?

Emotional salary has become an increasingly relevant concept in the corporate environment and is closely linked to workplace happiness. As the name suggests, emotional salary refers to non-financial benefits that can include products or services employees value, alongside financial compensation.

According to recent studies, these non-financial benefits can create a positive and fulfilling work environment. Some examples of “emotional salary” highlighted in the literature include:

  1. Positive recognition and feedback;
  2. Opportunities for personal and career development (training, workshops, promotions);
  3. Work-life balance (flexible schedules, remote work);
  4. Positive work environment and healthy organizational culture;
  5. Social and well-being benefits (health plans, wellness programs, psychological support).

These and other benefits are essential for promoting employee satisfaction and building a positive organizational culture.

The relationship between emotional salary and workplace happiness is complex, but empirical evidence points to a direct connection. The “Happiness Works” study suggests that employees who receive emotional benefits tend to miss work less often (24%), are less likely to want to leave the company (38%), and show more productivity and commitment to the organization’s goals (18%). Similarly, a Harvard University study found that companies investing in emotional well-being programs experience a significant reduction in stress and burnout levels, as well as an overall improvement in workplace morale. Additionally, emotional salary plays a crucial role in talent retention, as employees who feel valued are more loyal to the company, reducing turnover.

What is the role of leaders in promoting organizational happiness?

A leader can significantly influence their employees’ happiness and motivation. Here are a few key principles to keep in mind:

1 – People support what they help create

Whenever a leader wants to motivate someone to develop a project, it’s important to actively involve the person in its creation. How often do we see employees enthusiastically sharing ideas? “I thought of this!”, “This could work too!”, “What if we try it this way?”—This is the best tool to generate commitment and motivation in employees: involve them and make them part of the project’s creation. There is no motivation without participation.

2- Empower with skills

Sometimes, employees are actively involved in projects but feel they lack the skills to carry them out. If we empower them by providing training, the tools they need, and the technologies they must master, it will be easier to have motivated and confident employees. Here, the leader’s role is fundamental in identifying and addressing the training needs of their team members.

3 – The leader as a role model

For employees to feel truly motivated and engaged, it is essential that they see their leader as someone who is also highly motivated and committed. A demotivated, dissatisfied, and uninvolved leader will hardly inspire the opposite behavior in their teams.
It is also crucial for leaders to share their own journey and learnings with their employees. “Reinventing the wheel” can be demotivating, especially for younger generations who want speed, results, and to make a difference. Therefore, it is essential to share knowledge, experiences, and the challenges leaders have faced along their path. Inspirational leaders create successful employees!

Although several stakeholders contribute to building the path to corporate happiness, some companies are already hiring Happiness Managers to design and lead this process.

Happiness Manager… What’s that?!

Although the role of Happiness Manager is not yet regulated, their presence in organizations is growing and is highly valuable. They are responsible for promoting a positive culture aligned with the organization’s values and goals, to maximize overall team satisfaction. Their role involves understanding what contributes to employees’ happiness and well-being, thus promoting greater engagement with their roles and the organization. At Neotalent Conclusion, this mission is inherent to the People area, with a focus on the primary goal of ensuring that employees are happy and fulfilled in their workplace.

Ready to get started?

These and other pieces of evidence converge on an irrefutable conclusion: workplace happiness is a critical factor for employee performance and productivity, and therefore, for a company’s success. It is urgent to develop skills that turn us into agents of positive change in the corporate world. Only then can we create workplaces with greater meaning and careers with even more purpose.
Are you with us on this mission? 🙂

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