Why it pays to have happy employees

Why does Google have the happiest employees? Google studies its employees to find out how to make them happy. Its studies have ranged from the optimal size of lunch room tables (employees like long tables so they can talk to a variety of people), to how to encourage employees to save more for their retirement. One issue Google solved was the high rate of turn over amongst female staff. By extending paid maternity leave to 5 months the company saved more on staff recruitment costs than it spent on the increased benefits. Much of Google’s research is available to human resources departments in other companies.

Most companies aren’t as profitable as Google, and sadly many don’t seem to care what makes their employees happy, however, what the Google example shows is that increased staff happiness can lead to increased profits. All employers could take something from the Google example. Take employee happiness seriously and not only will you have fewer personal grievance claims, but profitability will also benefit. A win/win solution for everyone.