If you like to make your employees happy, you’re doing good stuff for your business. According to a recent Gallup study, organizations with high employee engagement enjoy 20% more productivity and 20% higher profitability.
But making employees happy isn’t always easy. In fact, 7 out of 10 employees in North America aren’t engaged at work. So, today we thought we’d share some expert advice on employee happiness.
There are some surprising insights in the links below, like why massages and free lunches and other Google-like perks aren’t what your employees really want.
Why Employee Engagement Is the Real Profit Lever
Employee happiness and engagement are tightly linked, but engagement is the real force multiplier for business results. Gallup’s latest research finds that only 32% of U.S. employees report being engaged, and global engagement is even lower, at just 21%. This means most workers are just “showing up”—missing the energy, focus, or sense of purpose that drives results. In fact, 70–80% of engagement is shaped by an employee’s direct manager.
The Manager Effect: Unlocking 20% (or More) Better Results
Manager impact is the “hidden ingredient” most leaders overlook. Managers account for up to 80% of the variance in team engagement—and when they are disengaged or overwhelmed, performance suffers. Leadership that listens, recognizes effort, and sets clear expectations directly correlates with teams achieving 18–23% higher productivity and profitability, according to multiple studies.
1) Only 27% of managers themselves are engaged, which drags down entire teams.
2) Organizations focusing on manager support, training, and empowerment saw engagement rise by 24%, and retention and productivity jump over 20%.
Beyond Perks: What Really Fuels Employee Happiness
Perks like massages or free lunches don’t move the engagement needle if deeper needs go unmet. Today’s workforce values:
1) Purpose-driven roles: Employees want to feel connected to the impact they make every day.
2) Regular, meaningful feedback (not just annual reviews).
3) Opportunities to learn and advance.
4) Autonomy and flexibility in how and where they work.
5) Authentic recognition—for results, effort, and improvement.
Companies shifting their strategy from surface-level perks to meaningful daily experiences consistently outperform the competition on productivity and profit.
The Rising Cost of Disengagement
Lost productivity linked to disengagement now costs U.S. businesses up to $2 trillion each year. Notably, disengaged teams have turnover rates that are up to 43% higher, and report higher rates of burnout, absenteeism, and error rates compared to highly engaged groups. This makes a business case for engagement initiatives not just about “soft” culture—but bottom-line performance.
How to Boost Employee Engagement—Starting Now
Equip managers with the tools, training, and bandwidth to lead, coach, and communicate with their teams regularly.
Build a culture of listening—use pulse surveys, suggestion boxes, and regular check-ins to uncover what holds employees back.
1) Set clear, actionable expectations that tie personal goals to company purpose.
2) Recognize and reward both big wins and incremental progress, publicly and privately.
3) Foster flexibility: Remote and hybrid workers report engagement rates 9% higher than office-only peers
- Forbes: 7 Ways to Keep Your Employees Happy and Working Really Hard
- American Express Open Forum: 7 Secrets to Keeping Your Employees Happy
- Mashable: 8 Ways to Keep Your Employees Happy
