Why happy employees are essential for your business

Why happy employees are essential for your business

Your company’s success relies heavily on the satisfaction and well-being of your workforce — the idea that happy employees are necessary for your business cannot be overstated. 

What keeps employees happy? While the thought may seem overwhelming, you might be surprised to hear how easy it is to satisfy your workers. The truth is, there are so many benefits of keeping employees happy, you’ll have a hard time not wanting to try after reading this.

The importance of employee happiness

Happy employees, happy business — nobody is surprised to learn that employee happiness is a crucial factor in the success and growth of a company or brand. Studies emphatically show that people will work harder when they’re happy.1 

Why happiness matters  

Happy workers perform better and are more productive, creating an atmosphere that encourages imagination, originality, and teamwork. This can lead to a thriving organization with increased talent retention from lower turnover rates. One study found that after investing in support that prioritizes employee happiness, Google saw a whopping 37% increase in employee satisfaction.1

The role that mental health plays

According to research, mental health plays a huge role in job satisfaction.2 Employees who feel supported and are happier in their job have fewer stress-related issues (like employee burnout or anxiety). In short, investing in resources focused on improving mental health can effectively create happier workplaces.

Benefits of keeping employees happy

Focusing on employee happiness isn’t just a “nice-to-have.” Today, it’s an essential component of any successful business plan. Fostering supportive workplace cultures where people feel valued, respected, and happy can result in improvements that span all areas of an organization, including: 

  • Increased productivity levels
  • Enhanced retention rates
  • Improved collaboration efforts between teams/departments
  • Strengthened company reputation

Economic payoff

Maintaining a happy workforce has many benefits — but one of the most obvious (and convincing) is the financial reward. 

A study — that was 6 years long and studied 42,000 employees — found that happy employees do more than just work harder and perform better. They also cost their company less to employ.3 Financial rewards of happy workers include:

  • Increased productivity: Happy employees are motivated to perform better, leading to higher output rates.
  • Reduced absenteeism: Employees with access to mental health and other support take less time off work due to stress- or health-related issues, resulting in lower costs associated with sick leave.4
  • Ability to attract and retain top talent: Companies that prioritize employee well-being and workplace happiness can attract top talent and maintain higher retention rates.
  • Positive brand image that promotes loyalty: Organizations emphasizing employee happiness have a positive image with customers, partners, and stakeholders. Healthy brand images can build loyalty, ultimately resulting in higher revenue and earnings. 

Increased productivity

Research shows that happy employees are 13% more productive than their unhappy counterparts.5 When workers are happy at their jobs, they’ll be more likely to produce exceptional outcomes consistently.

Employee retention

High turnover rates cost organizations a lot. There’s incredible expense involved in recruiting, hiring, and training. Employee satisfaction directly correlates to reduced turnover — people stay longer because they’re happy.

Enhanced collaboration and teamwork

Happiness can build trust in your organization, improving collaboration and teamwork. Colleagues with good rapport work together more effectively, turning out superior results.

Fewer sick days and absenteeism

Research suggests happy employees who are engaged at work are less likely to take sick days.6 This can save your company money on lost productivity and the costs of covering employees when they call in sick.

Innovation, creativity boost, and trust

Workplace happiness boosts creativity, innovation, and camaraderie among employees. When people are comfortable sharing ideas, they’re more likely to be vocal. Offering solutions to problems or ideas for new products and services can set you apart from your competitors.

How to keep employees happy

Having a content staff is vital to your success. Here are 5 practical ways to ensure you have happy workers.

1. Create a supportive work culture

A supportive work culture encourages organization-wide collaboration, communication, and respect. Improve dialogue to enhance support and boost morale and motivation by:

  • Creating feedback channels 
  • Addressing concerns right away
  • Recognizing achievements regularly
  • Establishing employee recognition programs

2. Promote professional development opportunities

Employees value growth opportunities. Invest in training programs to help them gain or enhance their skills to grow in their roles or advance in your company. You can also offer mentorship initiatives where experienced professionals and leaders in the company help guide newer team members.

3. Enforce a healthy work-life balance

A good work-life balance is critical to maintaining a happy workplace and preventing burnout.7 Implement flexible working hours to allow staff to manage personal commitments alongside their job responsibilities more effectively when possible.

4. Incorporate mental health support as a benefit

Mental well-being plays an essential role in employee satisfaction. Providing resources that support mental health in the workplace is vital. 

One way to accomplish this is through Employee Assistance Programs (EAP) that make things like Talkspace services more affordable and accessible. This gives employees access to licensed therapists and counselors who can help them navigate personal or work-related challenges.

5. Show appreciation and reward hard work

Take the time to recognize the efforts of your team members — it goes a long way toward motivating and keeping them happy. Regularly express appreciation for contributions and consider implementing performance-based incentives, like bonuses or promotions.

Invest in employee happiness with Talkspace

Your success depends on the satisfaction and health of your employees. Investing in their mental well-being by offering resources can be the first step in creating a happy, healthy workforce. Talkspace, a leading provider of online therapy for employees, can be an excellent addition to your company’s benefits package.

Talkspace offers:

  • Convenience: With Talkspace, employees can conveniently access therapy anytime, anywhere, through secure video calls and/or asynchronous messaging. The flexibility lets them get the help they need without disrupting their own schedule.
  • Affordability: Online therapy can be more cost-effective than traditional face-to-face counseling. By partnering with Talkspace, you can provide valuable mental health support without breaking the bank.
  • Anonymity: Many people hesitate to seek help because they have privacy concerns, and there’s still a stigma associated with mental health today. With Talkspace, privacy is easy and guaranteed, so opening up and getting the assistance they need isn’t as intimidating.
  • Variety of professionals: Talkspace offers access to a vast network of licensed mental health professionals who specialize in areas like stress management, anxiety disorders, depression treatment, and more. Every Talkspace member receives tailored care based on their unique needs.

A happy work culture leads to increased employee engagement and productivity, reduced turnover rates, improved morale and job satisfaction, and so much more. Investing in the happiness of your employees will pay you back dividends. Reach out today to learn more about how Talkspace provides confidential counseling services and supports the mental health needs of your organization. 


1. News & events. New study shows we work harder when we are happy. Accessed June 7, 2023.  

2. Cao X, Zhang H, Li P, Huang X. The influence of mental health on job satisfaction: Mediating effect of psychological capital and social capital. Frontiers in Public Health. 2022;10. doi:10.3389/fpubh.2022.797274. Accessed June 7, 2023. 

3. Happy employees are healthier (and cheaper). The Guardian. June 18, 2014. Accessed June 7, 2023.  

4. Bryan ML, Bryce AM, Roberts J. The effect of mental and physical health problems on sickness absence. The European Journal of Health Economics. 2021;22(9):1519-1533. doi:10.1007/s10198-021-01379-w. Accessed June 7, 2023.

5. Bellet C, De Neve J-E, Ward G. Does employee happiness have an impact on productivity? SSRN Electronic Journal. Published online 2019. doi:10.2139/ssrn.3470734. Accessed June 7, 2023. 

6. Harter J. Employee engagement vs. employee satisfaction and organizational culture. April 19, 2023. Accessed June 13, 2023.

7. How to improve your work-life balance. Business News Daily. Accessed June 7, 2023.  

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