Boost profit & employee retention with a happy team

Are you seeking tangible strategies to enhance your organisation’s profitability? Perhaps your CTO or HR director has highlighted the importance of truly understanding your people. It’s time to examine the compelling connection between employee happiness, engagement, and a key metric for you: your bottom line.

We often talk about engagement. But picture this: it’s part of a bigger, beautiful system – the engagement-retention flywheel. Happy, engaged people simply don’t leave. And guess what that means? More cash savings and a stable, productive team. Ka-ching!

The tangible return on investment of employee happiness

As a strategic people leader, you’re all about the numbers and ROI… am I right? Good news: the impact of happy, engaged employees isn’t some fluffy, whimsical concept. Our data at The Happiness Index offers persuasive, tangible evidence to the contrary:

For a company of 1,000 employees, even a modest 1-point increase in employee engagement and happiness scores (on our 10-point scale) can reduce annual turnover by up to 18 employees. This seemingly incremental improvement can generate annual cost savings ranging from £25,800 to £57,000. To explore the potential ROI for your organisation, please utilise our ROI calculator. Imagine the impact of a more substantial uplift in your culture…

Plus, our figures show happy employees are a whopping 16% less likely to jump ship. That’s not just saved recruitment fees. It’s keeping your top talent, their know-how, and their experience right where you need them. Explore our services and see how we make this happen.

Relationships: The employee retention superglue

What are the key factors influencing your employee’s decision to stay or go?

Our analysis is crystal clear: workplace relationships are the most significant driver of employee churn. Employees scoring less than 4 out of 10 for relationships were 23% more likely to leave within a year, compared to those with stronger bonds.

Now for a surprise: meaning & purpose, while important, isn’t the biggest driver of retention! It had the least direct impact on an employee’s likelihood to leave… Strong relationships? That’s the real superglue. Building a connected, supportive culture isn’t a ‘nice-to-have’; it’s a powerful lever in fostering retention. And guess what? Solid, academic research into the significance of social connections in the workplace supports this. You can learn more about how our platform helps measure these vital elements.

Driving organisational performance through an engaged workforce

The advantages of a happy and engaged workforce extend beyond improved retention rates. Consider the impact on productivity and efficiency. Engaged employees are more motivated, focused, and committed to their responsibilities. This can directly address those “deficiencies in the working day” that impact overall output.

Numerous studies have demonstrated a positive correlation between employee engagement and key business outcomes, including customer satisfaction, productivity, and profitability. When your people are engaged and thriving, your organisation is primed to achieve its strategic objectives. For a deeper understanding of the difference between employee engagement and happiness, we invite you to check out our popular webinar.

And when your people feel heard and valued – a natural outcome of a happy, engaged culture – trust in management goes through the roof. This creates a virtuous cycle: open communication, continuous improvement, and a workplace where everyone feels invested. This enables a positive feedback loop, encouraging open communication.

Building your organisation’s engagement-retention flywheel

So, how can you initiate and sustain this powerful flywheel within your organisation? It starts with truly understanding your people. Do you have metrics on their happiness levels, engagement drivers, and those crucial relationship dynamics? Traditional surveys often provide a superficial view, lacking nuanced insights into the underlying emotional factors – AKA the heartbeat of your organisation!

That’s where The Happiness Index comes in. We deliver neuroscience-backed insights and real, tangible measures of how your people feel. We go beyond basic data to give you actionable insights that solve problems, boost engagement, and deliver a significant return on your investment in your people.

Ready to see how a truly engaged and happy workforce can supercharge your bottom line? Interested in learning more about building your engagement-retention flywheel?

Let’s connect.

Tony Latter, The Happiness Index

References:

• Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71(3), 500–507.  

• Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268–279. 

• Rhoades, L., & Eisenberger, R. (2002). Perceived organizational support: A review of the literature. Journal of Applied Psychology, 87(4), 698–714.