Happy Employees Mean Greater Profits

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A number of studies have found a direct correlation between workplace morale and corporate results, so how can you improve employee morale – and, by extension, your bottom line?

Start by measuring how happy your employees are. Fred Reichheld’s Net Promoter feedback system was designed to measure customer service quality, but Apple uses it to measure employee engagement at its retail stores and to gauge what needs to be done to address the concerns of “internal customers.”

Greet employees at the start of each day with a gesture of appreciation, like a handshake or a hearty “good morning.” Free bagels and coffee wouldn’t hurt either, and could be the springboard for informal morning meetings to rally the troops and ease the transition from commute to work.

Use your employees’ skills appropriately. Don’t “reward” high performers by piling on extra responsibilities that pull them away from their favorite skills. At the same time, make sure they have time for personal and professional development. Reichheld recommends developing systems that help employees earn their own happiness.

And make sure you’re happy and involved in development and training too. Employees are more likely to follow leaders who walk the walk and are there in the trenches with them.

Adapted from Happy Offices Make More Money by Joe Taylor Jr. at Small Business Computing.


i suggest that the top management take the complaints of their employees into consideration.  when more than one employee brings a manager's incompetence to their attention, the bosses should get rid of the incompetent person sooner rather than later, and not excuse the incompetence or just move the thorn to a different position.  that person will not do "better".  the old axiom of shuffling someone into a position where they can do the least amount of harm is widely known and clearly damaging to the morale of all.


It's not so simple. Companies that that quickly begin to make healthy profits can quickly put programs in place to enhance morale. Airlines prior to de-regulation had very happy employees because the companies had money to put in place for many pro-employee programs. When airlines all went into bankruptcy, the budgets dried up and so did the employee programs so today in this industry we have a lot of sour employees. It's really a matter of which comes first, the chicken or the egg? Companies in viciously price competitive environments don't have the budgets for employee extras. And spending more to get them does not change the profitability of the company. In fact it reduces it. While people complain about airline service, deep down they don't care. They only care about the price of the ticket. Even after the most miserable of flights, with the rudest staff, consumers will on the next purchase choose their airline based on price. The airlines know this and as a result don't spend the money for employee morale.