Happy Employees are Good for Business!

According to "Entrepreneur" magazine's April 2003 issue, over 40% of employees feel very negatively about their present jobs. An estimated 20 million people are in jobs they don't like and, according to Tony Robbins; job dissatisfaction is the # 1 risk factor of heart attack in people less than 50 years of age. A separate study done by Sears found when employee attitudes increased by 5% throughout their 800 stores, revenues increased by .5%. This is a clear indication to them that it pays to increase employee morale.

The Radclyffe Group surveyed 16 major United States companies and determined satisfied employees resulted in satisfied customers. The research group pointed out that employees who are happy with their employer project a positive image to the customer. Customers decide whether or not to make future purchases with an organization, or to refer others to the business, based on their experiences with the company. Since front-line employees handle the majority of customer contact, it makes sense to keep these people in high spirits.

Why are employees so unhappy? Fred Herzberg, Professor of Psychology at Case Western University released the results of a study, published by the Harvard Business Review in 1968 and again in 1991. It is still considered "classic" by Harvard Business Review. The report cited the following 5 factors as the major contributors to extreme dissatisfaction among staff. They are listed in order of importance.

1. Company and Policy Administration

2. Supervision/ Relationships with Supervisors

3. Work Conditions

4. Salary

5. Relationships with Co-Workers


In a time of economic challenge for companies, if there is a direct-link between employee unhappiness and company profitability, perhaps it is safe to say that improving job satisfaction is good for business. So, how do we make people happy when we have small budgets?

1. Hire people who want the job. It sounds simple but many people have been downsized and are out in the job market with the concept of taking a job to have a job. Their plan is to just keep the paychecks coming in until the job market swings around again and then look for what they really want. Will these people project happiness to their co-workers and your clients? Will they be excited to go to work and be productive while they are there? Or will they be among the 70% of the workforce that is actually looking, or thinking about looking, for a job?

Many people with hiring authority aren't experienced in hiring. During an interview they may do a great job at describing the company, the position, and the requirements of the position before asking the prospective employee what they are looking for. The applicant today is savvier on interviewing than the interviewer. They have gone through training with the Unemployment Office, read books on the subject, and have a number of recent interviews under their belt.

It's time for the interviewer to get up to speed. Ask probing questions from the applicant such as "Out of all the positions you have worked in, which one did you like the most and why?" "What is your ideal position?", "What did you like about your working relationship with your most recent supervisor?" Then decide if this fits in with your company.

2. Help employees achieve their professional goals. Help staff individually outline goals that mesh with those of the organization and draw up a road map to help them get there. Provide them with clear expectations and empower them to get the job done.

Employee education and training should be focused in that direction as well. Develop the employee professionally and align them for advancement opportunity. When the company is ready for growth, the employee will be too.

3. Give credit where credit is due. A pat-on-the-back goes a long way and costs nothing. Recognition and appreciation means so much to staff. Employees want to feel that they contribute to the team and that their efforts are appreciated. Especially during a time where companies are cutting positions and employees don't feel they have job stability. Recognition and praise offer some security.

Not feeling appreciated is the number one reason people look for other jobs, according to Emory Mulling author of The Mulling Factor. He adds that in 2/3 of Job Dissatisfaction, the boss is cited.

4. Be Flexible. Today's dual income families are challenged daily with balancing work and home life. Employees need stress reduced so they can concentrate on the job. Some companies have added the following "perks" to make employees lives easier, with very little cost to the company.

Flex-time, allowing employee teams to be in charge of determining their schedules and the schedules for their department, assuring only that the department is adequately staffed at all times and employees work their full-time hours.

Adding Concierge service, to run employees errands during the day.

Allotting employees a certain number of hours off to attend school events.

Combining sick and vacation time into paid time off so employees don't have to lie, or feel as though they are using vacation time, for appointments or sick children.

Offering neck massages by bringing a professional into the company for a half day.

Many companies are unable to offer high, if any, pay increases right now. Salary, however, ranked low at number 4 on the top 5 lists of reasons for dissatisfaction among staff. It is the little things that go a long way in keeping your employees happy. A happy employee means staff retention and projects a positive image to the customers, which is good for business!