Happy employees are more productive

Happy employees are more productive … it’s common sense, right? This assumption that “happy = productive” underpins so many current working strategies, so it is hoped that it is correct. Companies around the world invest millions in their working environment to optimize conditions and promote employee well-being, convinced that this will help achieve the great business goal of improved productivity.
Which data is this assumption actually based on? When one goes deeper, very few studies clearly show the direct link between the employee’s happiness and productivity. Although there is evidence that better performing companies have happier employees, much less research has been done into whether satisfied employees actually contribute to better business performance. It is true that they may be more motivated and perhaps more loyal to their benevolent employer, but that does not automatically translate into improved performance and productivity.
That is why this article by Eugenio Proto is so interesting. Several previous studies in the field of psychology, social sciences, economics and management sciences are studied and draws a number of useful conclusions. Proto’s own research shows that a positive mood, an increase in happiness, leads to a marked increase in productivity in a task with paid piecework for both men and women. The study also showed that the effect works through a change in work output rather than in work quality.
The report concludes: “These findings have different implications for business operations and for research: first, if happiness in the workplace involves a return in terms of increased productivity, there are huge implications for the promotion policy of companies and for the way they structure their internal labor markets, for example, managers can be rewarded on the basis of employee satisfaction and employees can participate more actively in decision-making, which in general increases job satisfaction. “