Ever wondered why some companies seem to effortlessly outperform others? The answer might be found in the smiles of their employees. The Happiness Effect is a powerful phenomenon that links employee happiness to profitability. In this article, we’ll explore this connection and the transformative role of corporate benefits in fostering a happy, profitable workplace
What you’ll read here:
Employee happiness: why is it important?
Improved Productivity
Talent retention
Better customer service
Positive workplace culture
How does it correlate with corporate benefits?
Learn the impact of affordable benefits
3 other benefits a lifestyle spending account could bring to your company
Reduced healthcare costs
Talent attraction
Flexible and convenient
A closer look at our LSA
Employee happiness: why is it important?
Employee happiness is a huge factor in business success, and it can be an overlooked area for many companies. If you want to turn your business around, it’s important to focus on employee happiness. Here’s how you can do that.
Improved Productivity
Happy employees are more productive. A study by the University of Warwick found that happiness led to a 12% productivity increase, while unhappy workers were 10% less productive.
When employees are satisfied and engaged, they’re more likely to put in the extra effort and go the extra mile. They’re more motivated, more committed, and more likely to take pride in their work.
Talent retention
An aspect that goes hand in hand with employee happiness is talent retention. The steep costs associated with employee turnover make this a critical consideration. Notably, when employees are content, they’re less prone to seek opportunities elsewhere.
According to Zippia’s research in 2022, the cost of voluntary employee turnover exceeded a staggering $1 trillion. Moreover, 31% of employees quit within the first six months of starting a new job. These statistics show that employee happiness is important for talent retention.
Better customer service
Having happy, motivated employees who care about the company’s success is key to providing good customer service. This results in better customer experiences and increased satisfaction.
According to a 2022 white paper sponsored by Emplifi, 77% of brands consider customer experience to be a key differentiator, and 86% of consumers would abandon a brand after only two subpar experiences. By fostering employee happiness, companies can significantly enhance their customer service and strengthen brand loyalty.
Positive workplace culture
Employee happiness is a powerful catalyst for fostering a positive workplace culture. It encourages collaboration, boosts morale, and creates a more harmonious work environment. CNBC’s psoll of 8,664 workers showed that 15% attributed their job satisfaction to autonomy, 11% to opportunities, and 17% to meaning, albeit with variation by age.
Also, a Society for Human Resource Management survey found that 65% of respondents viewed respectful treatment as the most crucial factor contributing to job satisfaction. Hence, prioritizing employee happiness not only benefits the employees themselves but also aids in building a positive corporate culture that drives business success.
Read more:
- Employee benefits survey: uncovering what your workforce really wants
- Does happiness in the workplace matter?
How does it correlate with corporate benefits?
Employee happiness and well-being are closely tied to corporate benefits. Benefits like paid vacations, an active lifestyle, and entertainment show employees that the company values their happiness and is willing to invest in it. This, in turn, significantly enhances employee satisfaction and engagement. Moreover, a study conducted by IBM has found a positive correlation between employee benefits and company performance, further supporting the notion that investing in employee well-being yields positive results.
The impact of affordable benefits
Do you want to make your employees happy? Provide a range of affordable benefits options.
A lifestyle spending account, also called a wellness account, can be a powerful solution. LSAs offer personalized accounts funded by employers, covering various expenses like gym memberships, child care costs, and more. This flexible approach empowers employees to tailor their benefits to their specific needs, resulting in higher satisfaction and engagement levels.
↑ Employee Happiness Factors:
✓ Financial savings on eligible expenses
✓ Ability to prioritize personal well-being
✓ Increased work-life balance
✓ Enhanced sense of belonging and purpose
✓ Improved overall happiness and vigor at work
But LSAs are just one of the many affordable benefits that can make a significant impact. Workplace culture and employee well-being can be enhanced with a wide range of benefits, from commuter benefits to micromobility options. Consider these effective perks that can significantly improve workplace satisfaction:
- Commuter benefits: Provide pre-tax deductions or employer subsidies for transportation expenses such as public transit passes, parking fees, and vanpooling costs.
↑ Employee Happiness Factors:
✓ Save Money
✓ Save Time
✓ Reduced Stress during commute
- Micromobility options: Offer reimbursements or subsidies for bike-sharing, scooter rentals, or other forms of alternative transportation.
↑ Employee Happiness Factors:
✓ Healthier Commute Option
✓ Environmental Sustainability
✓ Increased Physical Activity
- Payment services: Facilitate convenient payment options for employees, such as prepaid cards or mobile payment apps, to cover various expenses outside the LSA coverage.
↑ Employee Happiness Factors:
✓ Easy and Convenient Expense Management
✓ Streamlined Payment Processes
- Ticket Restaurant: Offer subsidies or meal allowances to help cover the cost of employee meals during working hours or provide meal vouchers for use at local restaurants or cafes.
↑ Employee Happiness Factors:
✓ Save Money on Meals
✓ Enjoy Varied and Delicious Dining Options
✓ Improved Work-Life Balance
- Mental health benefits: Offer resources like counseling services, therapy sessions, or mental wellness apps to support employees’ emotional well-being.
↑ Employee Happiness Factors:
✓ Improved Emotional Well-being
✓ Enhanced Work-Life Balance
✓ Increased Job Satisfaction
Prioritizing these elements that contribute to employee happiness can help organizations create a work atmosphere where employees thrive, leading to improved financial performance, higher levels of engagement, and a lasting competitive edge.
3 other benefits a lifestyle spending account could bring to your company
Reduced healthcare costs
LSAs can reduce company healthcare costs by allowing employees to fund wellness expenses. This is particularly important considering that 22.8% of U.S. adults experienced mental illness in 2021, according to the National Alliance on Mental Illness. By providing employees with the means to take care of their mental health, companies can potentially reduce healthcare costs and improve overall employee well-being.
Talent attraction
Offering unique and flexible benefits like LSAs can help attract top talent. It shows potential employees that the company values their well-being and is willing to provide benefits that meet their individual needs.
Flexible and convenient
LSAs offer flexibility and convenience. Employees can choose how to allocate their funds, and they can easily access their account online or through a mobile app.
Read more:
- Employee retention: strategies for retaining top talent
- What can lifestyle spending accounts do for you?
A closer look at Edenred’s LSA
Corporate benefits like Lifestyle Spending Accounts are not just about employee satisfaction. They’re about leveraging The Happiness Effect to boost morale, attract talent, and enhance productivity.
With mental health becoming a growing concern – 50% of all lifetime mental illnesses start by age 14 and 75% by age 24 – LSAs can provide crucial access to mental health resources, enhancing overall well-being.
But remember, benefits are just part of the happiness equation. Work-life balance, job satisfaction, and a positive workplace culture also play key roles. So, while LSAs are important, they should be part of a comprehensive strategy to boost employee happiness.
Would you like to learn more about how LSAs can transform a company’s happiness? Edenred helps employers and employees find benefits that fit their needs. Click below to learn more.
