Are your employees happy at work? If so, congrats. You’re in rarified air.
For the majority of companies, employee happiness is getting worse. A study by BambooHR showed that employee satisfaction continues to decline. It’s the lowest it’s been in four years and lower than at the height of the COVID pandemic. The survey of more than 57,000 in 1,600 companies showed that nearly a drop off in every sector and only one industry (construction) even approached the 50% mark.
That’s likely why a 2024 report from the Society for Human Resource Management (SHRM) found that 44% of all employees feel burned out and 51% say they feel “used up” at the end of each workday. Gallup surveys show similar results. An August 2024 poll showed that just 33% of U.S. employees are engaged — five points lower than in 2020.
Yet, employee happiness and engagement are directly linked to productivity and performance. Companies with happy, engaged employees outperform their peers by a significant margin — 21% more profitable and grow profits three times faster than competitors.
In short, happy employees improve your bottom line.
What Do Employees Want at Work?
Answering that question gets you one step closer to employee happiness. Here are a few things that top most survey lists.
Positive Work Environment
While every employer wants to provide a positive work environment, there’s plenty of evidence about toxic environments and bad bosses. Building a company culture that respects employees, provides clear expectations, and pays fairly helps build a positive environment. Having fun from time to time doesn’t hurt either.
Employee Recognition and Rewards
One of the most important things you can do for your employees is recognize them. A simple thank you, handwritten note, or celebration can go a long way.
More formal rewards or employee incentive programs provide even greater benefits. Motivosity reports that when employees feel seen and heard, companies see 5X higher performance and a 50% reduction in turnover.
Scott Johnson, Founder and CEO of Motivosity, shares, “Recognition is not just a nice-to-have — it’s a critical component of a thriving workplace culture. When employees feel valued, their engagement and performance skyrocket. Our platform makes it easy for companies to recognize contributions in real-time, creating an environment where employees are not only motivated but also more connected to the company’s mission. This connection is directly tied to top-line success, as engaged employees are more productive, more loyal, and ultimately, drive better business outcomes.”
Flexibility
Employees today want a bit more flexibility. This could mean flexibility in schedules, remote or hybrid work arrangements, or in how they get their job done. By focusing more on outcomes rather than processes, you can often improve employee satisfaction.
If you can offer flexible work arrangements, it’s highly valued. Despite the return-to-office (RTO) push, employees want greater flexibility. 70% of those surveyed said they want companies to reconsider the 40-hour workweek altogether.
Effective Leadership
Want to improve your bottom line? Find the right leaders and train them well. LinkedIn’s Workforce Confidence Survey said that about 70% of employees would quit a job with a bad manager and it’s even higher for Gen Z and Millennials.
Employees want to work for bosses who:
- Are excellent communicators and provide clear direction
- Are open, honest, and transparent
- Do the right thing with integrity
- Solicit feedback and really listen
- Provide coaching and career development
- Recognize employees and teams
Meaningful Work
Employees also want to make an important contribution to their workplace and know that their work has meaning. When you connect the work team members do every day to important goals, it helps create a more positive environment.
Meaning provides several key benefits, including a sense of worth. Appreciation and recognition convey trust and build self-worth. It also fosters innovation. When employees know the company’s goals and believe in the mission, they are more likely to be invested in success. This, in turn, spurs innovative thinking for improvements.
Supportive Environment
Employees also need to know they’re being supported. This means competitive compensation packages, benefit programs that help them stay healthy, and security where possible. A nurturing environment that has built-in support systems and help when needed leads to stronger employee satisfaction.
Growth Opportunities
A lack of growth opportunities is another reason employees leave jobs. The 2024 Work in America survey by the American Psychological Association (APA) showed that nearly a quarter of employees surveyed cited a lack of opportunity for growth and development at work.
Providing coaching, teaching, and learning opportunities is so important today with concerns about emerging technology. Many employees already feel like they are falling behind and worry about their skill sets becoming obsolete.
Improving Employee Satisfaction
It can’t be all fun and games at work, but you can make an effort to provide employees with the things they need to stay engaged and happy. When you consider the alternative, it’s worth the investment in employee satisfaction and the ROI it generates for your bottom line.
