How to Create Happiness in Your Workplace, Encourage Trust and Build Thriving Employees - Without Sacrificing Your Mission.

The pursuit of happiness is a timeless human desire, and the modern workplace is no exception. Happiness in the workplace is not just a lofty goal or a feel-good buzzword; it is essential for the well-being and success of both employees and companies.

There is a growing body of research demonstrating that happy employees are more engaged, productive, creative, and less likely to leave their jobs. Happy employees also have lower rates of absenteeism and presenteeism, which can translate to significant cost savings for companies. In short, happiness in the workplace is a win-win situation for everyone involved.

The Psychological Evidence for Workplace Happiness

Psychologists have been studying the link between happiness and the workplace for decades. In the mid-20th century, Abraham Maslow developed his famous hierarchy of needs, which placed self-actualization at the top. Maslow believed that individuals could only achieve self-actualization if their more basic needs (such as safety and belonging) were met. This idea was later adapted to the workplace, where researchers found that employees were more likely to be happy and engaged if their basic needs (such as fair pay and a safe work environment) were met.

More recent research has focused on the role of positive psychology in the workplace. Positive psychology is the scientific study of human flourishing, and it emphasizes the importance of positive emotions, relationships, and meaning in life. Positive psychology interventions (such as gratitude exercises and mindfulness practices) have been found to increase happiness, well-being, and productivity in the workplace.

Real-World Examples of Happiness in the Workplace

Many companies have already started to prioritize happiness in the workplace. One well-known example is Zappos, the online shoe retailer known for its unique culture and emphasis on employee happiness. Zappos offers a number of benefits to its employees, including free food, on-site wellness services, and a fun and inclusive work environment. Zappos also has a unique hiring process that screens for cultural fit and values, which helps to ensure that new employees will thrive in the company's culture of happiness and customer service.

Another example is Google, which has consistently been ranked as one of the best companies to work for. Google offers a number of perks to its employees, including free food, on-site gyms, and nap pods. Google also provides its employees with opportunities for personal and professional development, such as career coaching and leadership training. These benefits help to create a culture of happiness and fulfillment at Google, which in turn leads to more engaged and productive employees.

How Companies Can Prioritize Happiness in the Workplace

If you're a company leader or manager, you might be wondering how you can prioritize happiness in your own workplace. Here are a few suggestions:

1.    Foster a positive work environment: Creating a positive work environment can be as simple as saying "thank you" and "great job" to your employees. You can also encourage a positive work environment by promoting open communication, creating opportunities for social connection, and promoting work-life balance.

2.    Provide opportunities for personal and professional development: Offering opportunities for personal and professional growth can help your employees feel valued and fulfilled. This can include offering training programs, mentorship opportunities, and career advancement opportunities.

3.    Offer perks and benefits: Perks and benefits can help to create a culture of happiness and well-being at your workplace. These can include things like flexible work schedules, on-site wellness services, and fun team-building activities.

4.    Listen to your employees: Finally, it's important to listen to your employees and take their feedback seriously. Conducting employee surveys and focus groups can help you understand what your employees need and want from their workplace, and can help you make meaningful changes to improve happiness and engagement.

There are a number of ways to institute best practices such as listening to your employees for creative and productive feedback. Here are a few examples:

1.    Conduct regular employee surveys: Employee surveys can be a valuable tool for gathering feedback on everything from workplace culture to specific policies and procedures. For example, software company HubSpot conducts regular employee surveys to gauge satisfaction and identify areas for improvement. The company has used survey feedback to implement new employee benefits, improve management training programs, and enhance the employee onboarding process.

2.    Hold regular focus groups or town hall meetings: In addition to surveys, companies can hold focus groups or town hall meetings to gather employee feedback. This allows for more in-depth discussions and can help build a sense of community and transparency in the workplace. For example, cosmetics company Lush holds regular town hall meetings where employees can ask questions and give feedback on company policies and practices. The company has used this feedback to improve employee benefits, such as increasing paid time off and offering flexible schedules.

3.    Encourage open communication: Creating a culture of open communication can help employees feel heard and valued. This can involve everything from holding regular one-on-one meetings with employees to setting up anonymous feedback channels. For example, tech company Buffer has an "Open Salaries" policy where all employee salaries are publicly available to the rest of the company. This creates a sense of transparency and openness around pay and helps employees feel more engaged and invested in the company's success.

4.    Act on employee feedback: Finally, it's important for companies to act on the feedback they receive from employees. This can involve making concrete changes to company policies and practices or simply enacting consistent practices to demonstrate care and concern on behalf of the company.  

Let's discuss employee feedback for a minute. In more depth, here are some ways employee feedback could be initiated: 

1.     Acting on employee feedback is crucial for creating a happy and engaged workforce. When employees feel like their feedback is being heard and acted upon, they are more likely to feel valued and invested in the success of the company.

2.    One example of a company that has successfully acted on employee feedback is the retail giant Costco. The company has a reputation for treating its employees well, offering competitive wages and benefits, and promoting from within. In a 2017 interview with CNBC, CEO Craig Jelinek attributed the company's success to its focus on employee happiness: "I think the morale of the company is very important. And I think the employees' morale is very important. And if they're happy, they're going to be much more productive. And if they're more productive, that's going to benefit the company."

3.    Costco has a number of programs in place to support employee happiness and engagement. For example, the company offers a generous employee stock purchase plan, which allows employees to buy company stock at a discounted rate. This not only helps employees build wealth but also gives them a sense of ownership and investment in the company's success.

4.    Costco also has a program called "The Voice of the Employee," which allows employees to provide feedback on everything from company policies to product offerings. The company uses this feedback to make changes and improvements, such as adjusting staffing levels or adding new products to the shelves.

5.    Another example of a company that has successfully acted on employee feedback is once again, online retailer Zappos. One way that Zappos listens to its employees is through a program called "Zappos Insights," which offers training and consulting services to other companies looking to improve their company culture.

6.    Zappos also has a "Culture Book," which is a collection of employee testimonials about the company's culture and values. The book is updated annually and is available to the public on the company's website. This transparency and openness helps employees feel heard and valued, and also helps attract new talent to the company.

Getting back to implementing open communication practices, there are a number of ways to engage and implement these practices and it’s important because it creates a culture of transparency and trust in the workplace. Let’s dive in!

1.    Establish clear channels of communication: One of the first steps in encouraging open communication is to establish clear channels for employees to share their thoughts and ideas. This might include regular one-on-one meetings between employees and their managers, suggestion boxes, or anonymous feedback channels.

2.    Train managers on effective communication: Managers play a key role in fostering open communication in the workplace. It's important to provide managers with training on effective communication skills, such as active listening and giving constructive feedback. More on this in a bit.

3.    Encourage feedback and suggestions: Employees are more likely to share their thoughts and ideas when they feel that their feedback is valued and will be acted upon. Companies can encourage feedback and suggestions by regularly soliciting input from employees and taking action on their feedback.

4.    Provide regular updates and information: Keeping employees informed about company news and updates can help build trust and transparency. This might include regular company-wide meetings or email newsletters that highlight recent accomplishments or upcoming initiatives.

5.    Create a culture of respect and openness: Finally, creating a culture of respect and openness is essential for encouraging open communication. This means fostering an environment where all voices are heard and employees feel comfortable sharing their thoughts and ideas without fear of reprisal.

 Training managers can be tricky based on their emotional intelligence and willingness to buy into the "happiness is important in the workplace" belief.

Here are some basic examples of companies instituting their own programs upon recognizing the needs and benefits emanating from this type of training and development.

1.    Provide training on active listening: Active listening is an important skill for effective communication. Managers can be trained on how to listen actively, which involves paying attention, clarifying misunderstandings, and providing feedback. One example of a company that has implemented active listening training is Disney, which has a training program called "Disney Institute Leadership Excellence."

2.    Teach managers how to give constructive feedback: Giving constructive feedback is another important communication skill for managers. This involves providing feedback in a way that is clear, specific, and actionable. One example of a company that has implemented constructive feedback training is IBM, which has a program called "Leadership Fundamentals" that includes modules on giving and receiving feedback.

3.    Encourage managers to be transparent: Managers should lead by example when it comes to open communication. Encouraging managers to be transparent and honest can help create a culture of openness and trust. One example of a company that has prioritized transparency is Buffer, a social media management company that publishes all employee salaries and encourages open discussions about compensation.

4.    Provide training on conflict resolution: Conflict is a natural part of any workplace, but managers can be trained on how to effectively resolve conflicts in a way that is respectful and productive. One example of a company that has implemented conflict resolution training is General Electric, which has a program called "GE Leadership Essentials" that includes modules on conflict resolution and negotiation.

5.    Foster a culture of open communication: Finally, it's important to create a culture of open communication in the workplace. This means encouraging employees to share their thoughts and ideas, and fostering an environment where all voices are heard. One example of a company that has prioritized open communication is Patagonia, an outdoor clothing and gear company that encourages employees to share their ideas and provides regular opportunities for feedback.

Training managers on effective open communication practices requires a deliberate effort on the part of company leaders. By providing training on active listening, constructive feedback, transparency, conflict resolution, and fostering a culture of open communication, companies can create an environment where employees feel valued and heard. Other examples of companies that have successfully implemented these practices include Disney, IBM, Buffer, General Electric, and Patagonia.

 Acting on employee feedback is one of the keys to creating a happy and engaged workforce.

Companies that prioritize employee happiness and engagement are more likely to see increased productivity, lower turnover rates, and higher profits. By listening to their employees and making concrete changes based on their feedback, companies can create a workplace culture that fosters happiness, fulfillment, and success.

Learn and appreciate the opportunities in creating workplaces where your people thrive. Be the catalyst for an extraordinary experience in your mission and in your leadership practices. Best of all know you can effectively institute a place of trust and happiness within yourself and your people!

And always aim to see yourself not as you are, but who you can become!

Eddie Petrie, MBA