The Link Between Employee Happiness and Revenue

Updated: Oct 8



Did you know that there is a link between employee happiness and revenue? Studies have shown that happy employees lead to high levels of productivity and, in turn, increased revenue for their companies.


It may seem like common sense, but many businesses don't invest in their team members the way they should. In this blog post, we will discuss the benefits of investing in your employees and some ways you can go about doing it.


Statistics showing happy employees mean higher revenue

While it seems like common sense that happy employees lead to more revenue, there is also plenty of data to back this up. According to a study featured in Forbes, happy employees are up to 50% more productive than unhappy employees. Happiness has an even bigger influence on salespeople, increasing sales by up to 37%.

So what does this all mean for your business? Investing in your team members pays off, both in terms of their happiness and in terms of your bottom line. It's pretty clear that doing what you can within your power to ensure employee happiness is a smart business move. So, what are some ways you can make your employees happy?


How to increase employee happiness


Pay salaries on time

Simply paying your employees on time is essential, and can even be more important to employees than having a higher salary. Your workforce relies on their salaries to pay bills, support their families, and live their lives.


When you don't pay them on time, it creates a lot of financial stress and anxiety which can even lead employees to accumulate debt due to not having the money to cover their expenses.


This can quickly lead to unhappiness and resentment towards the company which can also lead to drastically decreased productivity. To avoid this, make sure you are paying your employees on time, every time.


Have non-punitive and open door policies

Your employees should feel like they can come to you with any concerns or problems they have, without fear of retribution. Creating a non-punitive environment is essential for employee happiness. Not only will this make your employees feel more comfortable coming to you with issues, but it will also help you to identify and solve problems more quickly.


In addition, having an open door policy shows that you are approachable and willing to listen to your team members. This can go a long way in building trust and rapport with your employees. One simple way to do this is to allow employees to book a time with you to discuss concerns or feedback while ensuring conversations are confidential.


Encourage open conversation

Make sure you are encouraging open conversation among your employees. For example, arrange town hall meetings encouraging questions and feedback from front-line staff. By having these meetings frequently, such as once per quarter, you can increase the accountability of your front life staff as well as responsibility and morale.


Clearly communicate action plans

Employees who are in the dark about what is expected of them or where the company is headed are more likely to be unhappy and unengaged. Make sure you are communicating action plans clearly to your team. Be clear about what can be provided and what isn't in the best interest of the company.


Also, be sure to encourage employees to be realistic about their expectations from the company and communicate improvement action plans to your employees. This can easily be done via email to ensure everyone is on the same page.


Don't require too many hours

One of the quickest ways to decrease employee happiness is requiring them to work too many hours. While it may seem like working longer hours will get more work done, it's actually counter-productive. Instead, try to encourage a work-life balance for your employees. Overworked employees are more likely to be stressed, which can lead to a host of health problems and decreased productivity.

It's a proven fact that more than 8 hours of work is not productive and can cause your employees to have a poor work-life balance. In fact, new research is suggesting even shorter days for better productivity and work-life balance.


If your employees work in shifts, ensure that the shifts are as undisruptive to the human body as possible such as a 4 am to 4 pm morning shift and a 4 pm to 4 am night shift. In addition, listening to employees' concerns about their hours and working to create a schedule that meets both the needs of the business while also taking into account the employees' needs will go a long way in keeping them happy.

Investing in your team's happiness is an essential part of running a successful business. By paying attention to your employee's happiness, you can increase productivity, decrease stress levels, and create a more positive work environment. All of these factors will lead to increased revenue for your business.

Maintaining happy employees is your job as a manager and helps to prove your worth in your company. In our next blog post, you'll learn how to use contracts to your advantage & secure the very deals. Click here for all the details.