The numbers don’t lie; lost productivity due to disengaged employees costs the economy over $300 billion every year. In fact, companies that have unhappy employees have three percent lower earnings per share than the norm.
Nearly 46% of new hires fail within the first 18 months of employment and 89% of those failures are attributed to poor culture fit. This loss ends up costing the company turnover costs of between 100%-300% of what used to be the employee’s base salary.
Most companies today try to assess whether candidates will fit the culture of the company before hiring. This is not to exclude those who don’t “fit in;” it’s an attempt to ensure the company will be able to provide the environment the candidate needs for maximal satisfaction. Some companies believe that happiness doesn’t immediately pay the bills and therefore isn’t worth investing in. What management must realize is how much a happy employee can net their business.
So let’s consider the returns that employee happiness brings to businesses that choose to invest in human capital.
Companies that have engaged employees outpace their competition by up to 202%. Happy employees have 37% higher sales numbers; are 31% more productive; and clock in with three times the creative thinking than their unhappy counterparts. Those are numbers that management can’t afford to ignore.
The concept of happiness is far more abstract than the bottom line depicts in quarterly reports. So what are some ways that employees can find happiness at work? What are some ways that businesses can incorporate employee well-being into everyday culture?
We have several easy tips for boosting employee happiness at your company. Download our free eBook: Employee Happiness 101 to learn them today!