Happiness and well-being as performance indicators in companies

Photo from the LongVision collection, where there are some people together, smiling, all standing next to each other. All around there are trees and grass.

Happiness and well-being are increasingly recognized as important performance indicators in companies.

While traditional measures of success have focused on financial performance and productivity, there is a growing understanding that employee happiness and well-being are crucial to organizational sustainability, social responsibility and achieving collective goals and results.

Happiness and well-being at work

Happiness and well-being are subjective measures of success that reflect how individuals feel about their lives and their work.

In other words, even though it is difficult to measure, measuring happiness and well-being in companies is fundamental, because it can provide information about people's involvement, productivity and retention in work environments.

For example, a study by Gallup - Workplace Consulting and Global Research - found that engaged employees are 21% more productive than their disengaged colleagues.

Additionally, companies with high people engagement have lower turnover rates and are more likely to attract top talent.

With all this in hand, the company's revenue - a leading indicator of organizational health - can increase considerably.

So, promoting happiness and well-being at work is not only beneficial for employees, but also for the organization as a whole.

The scientific evidence behind this analysis

It is no coincidence that people's well-being and health are part of the popular and current acronym ESG - Environmental, Social, and Corporate Governance.

Among the goals proposed by the UN, decent work, health and well-being make up 11 of the 17 SDGs - Sustainable Development Goals.

According to studies carried out by Harvard Business Review, happy teams are approximately 85% more efficient, 30% more productive and 300% more innovative, surprisingly.

Of course, this is already recognized in some way. However, for some time, companies and leaders thought that investing in games, foosball tables, video games and drinks would increase employee happiness and reduce stress.

However, the solution is not that simple. Leaders need to understand that happiness depends on very deep pillars of human behavior.

That is, people want to trust, they want to belong, they want to feel included, safe, part of a greater purpose.

They want development, appreciation, success and respect in the work environment.

So, how can you implement happiness and well-being at work?

There is no single answer to this question. But there are methodologies that help in this process.

According to The Five Dysfunctions of a Team, written by Patrick Lencioni, author of the bestselling The 5 challenges of teams: A story about leadership, it is possible to evaluate the five behaviors of cohesive teams, to reduce stress and increase happiness at work.

To achieve this, leaders need to be open to the approach, which is based on trust through vulnerability.

In other words, it is by admitting our vulnerabilities - which, for a long time, were seen as weaknesses - that we build safe and transparent environments, and cement the basis of trust so that relationships become healthy and committed to a greater good - in this case, the purpose or result of the organization.

In fact, admitting vulnerability is being human. It is, above all, an act of great courage!

As a result, people start to trust each other. Conflicts are no longer scary or unproductive. Quite the contrary, they are productive in search of the best solutions.

People commit themselves that way. They feel like they belong, are included and are owners of the processes.

And happiness and well-being are there!

To learn more about these processes, read:

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