In today’s competitive job market, companies are increasingly recognizing the importance of prioritizing employee happiness. It’s no secret that happy employees are more productive, engaged and likely to stay with their employers for the long term.

But what exactly makes employees happy, and how can companies foster a positive work environment that cultivates happiness among their staff?

A Supportive Work Environment

A supportive, respectful and positive workplace culture is fundamental to employee happiness. Employees who feel valued and appreciated for their contributions are more likely to feel motivated and engaged in their work. Companies can foster a supportive environment by promoting open communication, providing opportunities for collaboration, and actively addressing issues that create dissatisfaction, a lack of trust and indifference.

There is so much to be said about a great working environment. From good teamwork to management’s emphasis on a good work-life balance, all these things are important.

A supportive and flexible environment where people know they are looked after, respected and cared for is very important. Management needs to be positive and encouraging. Good energy should start at the top, and employees will then be enthusiastic and develop healthy relationships among colleagues.

Fair Compensation and Benefits

Fair compensation and comprehensive benefits packages demonstrate that the company values its employees’ contributions and cares about their well-being. Competitive salaries, bonuses, health insurance, retirement plans and other perks can significantly impact employees’ overall satisfaction and morale.

Often, people will look to change jobs if they do not feel their compensation is fair in relation to the efforts they make in the position. If they are not told how to improve and make more money or move up in the organization in performance reviews, they can often get discouraged.

Management should be aware of what the market rates are for pay in the industry by position.

Advancement Opportunities and Purpose

Employees are happiest when they feel challenged and stimulated and have opportunities to grow and advance in their careers. Offering training programs, mentorship opportunities and clear paths for career progression can demonstrate a commitment to employees’ professional development and enhance their job satisfaction.

Employees need to know how they can grow in their jobs. Growth will be obvious if the performance review is well done and people are encouraged to discuss their desires for advancement.

Employees also need to feel that their work has a purpose and positively impacts others or contributes to something meaningful. Companies can foster a sense of purpose by aligning employees’ roles with the organization’s mission and values and highlighting the impact of their contributions on the company’s success. Create a work environment that brings meaning to the employee’s job.

A Healthy Work-Life Balance

Providing flexibility in work hours, remote work options and manageable workloads can help employees maintain a healthy balance between their professional and personal lives. When employees feel empowered to prioritize their well-being outside of work, they are likely to be more productive and engaged during working hours.

Since COVID, life has been forever altered in the workplace. Because so many people have had to work from home, some have become much more comfortable with that flexibility, especially if they are good workers and figure out how to maximize their work-life situation. It has been hard, however, for employers and managers to manage the work-from-home situation, and many have put their foot down and will no longer accept 100 percent remote workers.

If management has flexibility in this regard, it is much easier to find new employees and keep existing employees. At least a hybrid environment should be offered if employees do perform, which is often a split of three days at home and two in the office. It also fosters better communication when employees can work together face to face, especially with producers and customer service representatives.

Individual Recognition and Appreciation

Acknowledging employees’ efforts and achievements through praise, rewards and opportunities for advancement is essential for boosting morale and job satisfaction. Simple gestures of recognition, such as a thank you note or public acknowledgment of a job well done, can make employees feel valued and appreciated.

Most employees don’t appreciate a group fixed raise or feel like their efforts don’t make a difference. Those who work the hardest are often rewarded with more work because they are good, don’t often complain and get it done. When they sit in a department with others that don’t pull their weight and don’t see a difference in how they are treated, it does not encourage exemplary performance. Annual performance reviews are very important so people aren’t just guessing about how they are viewed and appreciated and what they can do to move up in the organization.

Related story: Put Motivation Back Into Performance Reviews

Open and Honest Communication

Transparent communication about company goals, expectations and changes fosters trust and helps employees feel more engaged and connected to their work. When employees feel informed and involved in decision-making processes, they are more likely to be invested in the company’s success.

It is important that management let their team know the company’s goals. That communication should include how management wants to grow, what the firm’s goals are for the coming year, and how people will be able to move up in the organization and be incentivized. An annual planning meeting with the appropriate attendees can be helpful, and when the plan is committed to writing, it should be shared with all staff. Annual employee reviews are also important, so people know where they stand with their superiors.

Measured Workloads

Employees will dread going to work if they are constantly overwhelmed with their workload and feel unsupported. This is often the result of managers who don’t monitor workloads. Without a clear understanding of each employee’s workload, managers may underestimate the amount of work being assigned and fail to provide necessary assistance.

When employees understand what is expected of them and managers are aware of their employees’ productivity compared to industry standards, adjustments can be made, such as redistributing work or hiring new staff. Management can also offer more money to employees to handle more work. This leads to a greater sense of fairness among staff and mitigates feelings of inequity.

Summary

Employee happiness is influenced by a combination of factors. Each company and employee mix is different, and no single formula exists for success. Find the best blend of the factors described above for the organization and staff. Discuss them with the staff and revise the approach as needed. Leaders can create a workplace where employees feel fulfilled, motivated and happy, ultimately leading to increased productivity, retention and overall success.

*This article was originally published in Insurance Journal, CM’s sister publication.