Until recently scientific evidence for a link between employee well-being and company performance has been scarce. In the new IZA World of Labor report, Dr. Eugenio Proto, of the University of Warwick's Department of Economics, gives some proof. Finding causal relations between employee well-being and company performance is important for firms to justify spending corporate resources to provide a happier work environment for their employees.
Dr. Proto cites a number of researches that uncovered evidence that happiness leads to greater creativity, and that job satisfaction is positively related with worker productivity. These can be defined as people who frequently experience positive emotions like joy, satisfaction, contentment, enthusiasm, and interest. For example, adolescent Americans who are "happier"end up with higher incomes several years later in life.
First, if happiness in a workplace carries with it a return in terms of enhanced productivity, there are enormous implications for firms' promotion policies and for the way they structure their internal labour markets. For example, managers could be rewarded on the basis of employees' job satisfaction. Second, Proto suggests a win-win situation for everyone. The effect running from happiness to productivity raises the possibility of self-reinforcing spirals——ones that might even operate at a macroeconomic level. Happiness might lead to greater productivity in an economy.
A. The conclusions are contrary to what most people think.
B. However, few companies are willing to invest in this aspect.
C. In turn, greater well-being in the population can be expected.
D. These findings have some implications for company practice.
E. Therefore, policies can be introduced to boost staff happiness.
F. Other studies show happy people are more likely to succeed in their career.
G. He notes there is a positive connection between happiness and productivity.
