Updated: June 23, 2023

Happy Employee Statistics & Facts [Free to Cite]

You found our list of helpful happy employees statistics.

Happy employee statistics are figures and facts used to determine workplace happiness. These reports come from sources like case studies, surveys, and experiments. Knowing these facts can give organizations and team leaders better insights into how employees feel about their working conditions and what areas or processes team leaders need to improve. This data relates to employee engagement, and much of this information is available in books on employee satisfaction and engagement.

​Happy employee statistics are similar to job satisfaction statistics, employee mental health statistics, and employee engagement statistics. Reading this list can help you learn the benefits of happy employees and ways to improve employee satisfaction.

​We will continue to keep these statistics on happy employees updated as a valuable resource for you and your audience.

Happy employee statistics [free to cite]

You can use this data in any content, including blog articles, social media, formal presentations, and internal communications. Please cite the source as Team Building and link to https://teambuilding.com/blog/happy-employee-statistics.

1. Happy employees are 12% more productive than unhappy employees on average

According to research by Social Market Foundation on Happiness and Productivity: Understanding The Happy-Productive Worker, happier employees showed approximately 12% greater productivity than those who were unhappy. Employees are likely to be more engaged and improve work output only in a positive work environment where they feel heard and valued.

Happy employees are productive and tend to benefit team leaders and the organization in the following ways:

  • A low turnover rate saves management time and funds in training new employees.
  • Happy employees also aim to treat customers well, resulting in happier customers.
  • Companies with satisfied staff see a significant increase in cost and time efficiency among employees.
  • Having happy employees means fewer sick days or work breaks.
  • Increased productivity equals higher profits for the company.
  • Happy employees also help promote your company by showcasing a positive work culture.

Hence, management and team leaders should always ensure they satisfy their valuable talents to avoid the consequences of higher turnovers or burnout.

2. Three in four adults consider a company’s culture before applying for a job

Glassdoor survey on the importance of work culture over salary showed that 77% of adults would consider a company’s organizational’s culture before applying for a job there. Since mental health is a top priority for every employee, no one wants to be in a company with a hostile work culture, especially since they spend the bulk of their time there. One of the benefits of having a great work culture is that you spend less time dealing with burned-out or depressed employees.

Besides, a positive work environment makes your team eager to be at work every day. This joy extends to their dedication to work and the quality of service they provide customers since you have successfully earned their loyalty. Another benefit of having a great work culture is a lesser turnover rate and higher engagement since the employee satisfaction ratio is higher. Therefore, you should utilize the importance of investing in your employees’ happiness since it holds more benefits for your company.

3. 36% of employees would willingly give up $5,000 a year in salary to be happier at work

Contrary to popular belief, the primary motivation for most employees is not how much they hope to receive at the end of the month. Although a salary determines whether or not an employee remains at or quits their job, money is not necessarily what ensures employee happiness. An infographic by Visually shows that 36% of employees are more than willing to give up $5,000 in salary annually to be happier at work.

​Employees nowadays pay more attention to the work culture and value of an organization, with particular attention to how companies handle the mental health of their employees, not necessarily how much they pay. Most employees would likely quit a job quicker if they discovered the leadership is poor, partisan, or the role gives zero room for career growth or opportunities. Therefore, you should focus on more than just putting out attractive salaries to get recruits faster. If your company lacks the right organizational culture, value, and proper leadership, then a good salary will not reduce the employee turnover rate. Instead, the emphasis should be on creating a positive work environment where you understand what makes your team happy and work toward ensuring they remain satisfied.

4. Employees who feel respected are more satisfied with their jobs

Like in everyday life, respect is essential. Harvard Business Review states that 63% of employees are satisfied at jobs where they feel respected. More often than not, job roles reflect employees, and when leaders disrespect them, it is almost synonymous with insulting their identities. A toxic workplace ridden with disrespect for employees negatively impacts their productivity, affecting the company. According to the survey, 80% of employees who experienced disrespect spend significant work time reflecting on the act, thus reducing their productivity. Another 48% of employees deliberately reduce their work output, and in most cases, this resentment spilled onto unsuspecting colleagues and even customers. On the other hand, employees who feel respected are happier, more engaged, loyal, and easily motivated to produce only the best results.

5. Appreciation boosts employees’ productivity by 50%

A study by the Journal of Personality and Social Psychology states that a bit of gratitude makes employees 50% more productive, especially when it comes from their manager or supervisor. As a team leader, one of your biggest tasks is ensuring that your team stays motivated to ensure maximum productivity. One of the most effective ways to guarantee efficiency is to appreciate and recognize your employees as often as possible. No matter how great or little, appreciating an employee’s contribution to the team keeps them happy and boosts their morale.

​If employee engagement is also your goal, then showing gratitude is a great way to achieve this. When your team feels valued, it becomes easier for them to communicate with you, especially when they feel unsatisfied with their role. A great relationship with teams and their leaders is also one of the most significant ways to ensure a positive work culture and increase efficiency. Besides, one of the best ways to promote your company is having your employees as your brand advocates, and this can only happen when they feel acknowledged.

6. Happy salespeople produce 37% more profit

Many organizations are now emphasizing employee happiness for many reasons, and one is that employees’ mental health ultimately affects the company. With several studies and surveys showing how happy employees contributes to a company’s growth, there is no reason why you should not aim to make your team happy. A paper published by Social Market Foundation showed that when it comes to salespeople, happiness has an even more significant impact, raising sales by up to 37%. The mistake many companies make is prioritizing making profits over the mental state of their employees, forgetting that without employees, there is no business.

If your team feels unhappy with their role, then your turnover rate will likely go higher, leading to a halt in production and spending valuable time and cash replacing them. On the other hand, happy employees are productive and are willing to put more effort toward the company’s growth through increased profits. Also, a study shows companies with happier employees tend to outperform their competitors by 20%, and such teams will aim to accomplish more compared to unhappy teams. Hence, ensuring your team stays satisfied with their role is imperative.

7. 30% of employees feel they cannot talk about their mental health in the workplace

According to the 2023 State of Workplace Empathy Report by Business Solver,  30% of employees feel they cannot talk about their mental health. This assertion is quite understandable, considering the same report states that 43% of employees do not feel their employers discuss the importance of mental health in the workplace. Since employees spend most of their time and days in the workplace, a decline in their mental health significantly impacts work quality. Sometimes, a decline in the mental health of your employees may not stem from personal experiences. Excessive workload, disrespect, discrimination, and poor work facilities or conditions are some of the many factors that can negatively affect your teams’ mental health.

If your employees feel that they cannot talk about their mental health in the workplace due to a lack of support on the part of the management, then there will likely be an increase in turnover. One of the ways to ensure your employees are free to talk about their mental health is by promoting mental health discussions. You can set up discussion groups or take a survey to provide insight into the mental health state of your employees. These activities are essential because they show you are empathetic. You also get valuable feedback to help you create the appropriate support for those struggling with mental health, reducing the risk of losing valuable talent.

8. 9 in 10 workers who have a career mentor say they are happy in their jobs

Many companies are starting to consider the benefits of mentorship in the workplace, and the SurveyMonkey Workplace Happiness Survey corroborates the importance. According to the survey, 91% of employees with a mentor claim they are satisfied with their jobs. Mentorship in companies greatly benefits all parties involved. One of the most important purposes of workplace mentorship is to ensure employee satisfaction, especially when they get opportunities to grow within their role. When your employees feel satisfied, productivity increases.

When you offer mentorship to your team, you also build a company culture that supports growth, innovation, and knowledge. Mentorship is also an excellent opportunity for team leaders and employees to share valuable knowledge, reducing the cost of training staff if they ever advance to senior levels within the organization. Finally, providing mentorship for your team is one of the best ways to ensure better communication and teamwork.

9. 67% of employees with access to free food at work are happy with their job

According to UCreative, a survey of 1,000 American full-time office workers found that 67% of employees with free access to food are extremely happy with their job. From this survey, it is easy to deduce that offering meals to your employees might be a great way to keep them productive and satisfied with their roles. Although providing free meals may have additional costs, several benefits come with this gesture. Employees feel appreciated since you are willing to invest in their physical well-being. Another benefit is that meals make your employees more productive since they do not have to take unnecessarily long breaks for lunch or leave the office. These long breaks mean less time for work. Free meals are also a great way to encourage relationships between employees and their colleagues. A discussion over lunch may be all some employees need to get in a better mood and perform optimally for the rest of the day.

10. Actively disengaged workers cost the U.S. upwards of $550 billion in lost productivity per year

Disengaged employees have a substantial negative impact on a company. According to a Gallup report, actively disengaged employees cost the U.S. $450 to $550 billion in lost productivity annually. In several ways, disengaged employees spell bad news for any company, with the biggest disadvantage being a decline in productivity. Disengaged employees are likely to work less or make more errors since they are mentally and physically unmotivated to do better. The effect of this situation is a high turnover rate, as more than half of disengaged employees are more likely to quit. Another issue that might arise is an increase in dissatisfied customers since employee disengagement will probably lead to poor customer service. Hence, it would be best if you adopted strategies to increase employee engagement in the workplace.

11. 72% of professionals believe having more work benefits would increase their job satisfaction

According to a survey by Zoro.com, 72% of professionals believe that having more work benefits would increase their job satisfaction. Most employees are likely to stay at a company offering more work benefits besides an attractive salary. These work benefits include mentorship programs, access to free food and transportation, remote working options, health insurance, travel perks, and even student loan reimbursements. These benefits show employees that you are concerned about what they have to offer and care about their well-being. With these perks, it is easy to increase employee engagement, retain valuable staff, and attract new talent.

12. 60% of employees believe their colleagues have the greatest impact on job satisfaction

According to Statista’s 2019 Survey on Contributors to Employee Satisfaction in the U.S., 60% of employees believe their colleagues make the biggest contribution to job happiness.

Social interaction among employees has several benefits, and some of these include:

  • Positive social interactions are among the best ways to boost employee engagement, as they would be eager to be at work every day.
  • Having great colleagues at work also allows teams to share essential knowledge or information, leading to improved performance.
  • Social interactions at work provide the right morale boost and contribute to an increase in employee satisfaction.
  • Great relationships among colleagues lead to better communication.
  • Positive social interaction among employees builds a great work culture.

As a team leader, you should encourage face-to-face interactions among employees. Promoting interactions among your team creates an inclusive workplace where the whole staff feels like part of a work family.

13. Employee recognition programs reduce turnover rates among employees by over 50%

Many organizations realize the positive impact of appreciating their employees, hence adopting programs recognizing their efforts. A 2022 Gallup and Workhuman study survey revealed that employees were three times more likely to feel loyal to their companies when duly recognized, and 56% were less likely to look for new job opportunities. This survey only indicates that happy employees are critical to a profitable business, and you can incorporate several employee recognition programs to appreciate your team.

Some of these programs include:

  • cash incentives
  • gift cards
  • corporate swag
  • gift baskets
  • paid time off
  • yearly salary increase
  • celebrating their special days

If you aim to increase employee happiness, engagement, and retention, then offering employee recognition programs is a great option.

How to cite these statistics

If you reuse this data or the accompanying infographic, then please include a link to https://teambuilding.com/blog/happy-employee-statistics. We will continue updating this resource with useful manager statistics and facts for your work.

Final Thoughts

Employee happiness should be a priority for team leaders, and this list of happy employee statistics only reiterates its importance. In conclusion, the statistics on happy employees present a compelling case for organizations to prioritize employee satisfaction and well-being as a strategic imperative. The data unequivocally demonstrate that a happy workforce is a desirable outcome and a powerful catalyst for productivity, engagement, and success. When your employees are happy with what they do, there is less turnover rate, and productivity will be significantly higher.

​For more useful facts and figures, check out this list of teambuilding statistics.

​For more information on employee happiness, check out these articles on quiet quitting statistics and the benefits of employee engagement.

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People & Culture Director at teambuilding.com.
Grace is the Director of People & Culture at TeamBuilding. She studied Industrial and Labor Relations at Cornell University, Information Science at East China Normal University and earned an MBA at Washington State University.

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