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Thought Leadership

Empowering employee happiness leads to more productive employees.

A happy employee is a productive employee – a phrase that every business executive is familiar with. But how can your organisation cultivate employee happiness to enhance their productivity and engagement?

Kristina Singleton

09-01-2025

Lots of people holding their phones up with their torches on

Is there a link between happiness and productivity?

With more and more research showing that a happy employee is a productive employee, organisations are having to ensure that their office culture and overall company policies promote a happy working environment. For example, according to the Social Market Foundation, employee happiness results in a highly significant increase of almost 20% in productivity. 

The Employee Happiness Index 2018 reports that HR leaders' primary responsibility is to boost employee performance through their corporate responsibilities and benefits schemes, a topic we’ll revisit later.

In order for your company to succeed, it’s vital that your employees genuinely care about their position and are keen to drive results. But, this can only be achieved when employees feel appreciated, respected, and generally positive in the workplace.

How to improve employee happiness and productivity?

As we’ve mentioned, there’s an undeniable connection between productivity and happiness, so it’s essential to ensure that your employees' moods are in top form to achieve the results you’re looking for. A bad mood acts as a clear mental block from reaching peak performance, so how can you keep your employees happy?

Improve office culture.

There's nothing positive about a stressful environment. You wouldn't want to work in one, and neither do your employees. Stressful environments only put a bigger strain on employee pressures and responsibilities. These pressures can cause even the most productive employees to feel overwhelmed, unproductive, and ultimately, unhappy. 

But there are a few things organisations can do to reduce the negative effects of a busy office environment and improve the company culture:

  • Encourage employees to take breaks away from the desk

  • Offering healthy snacks, smoothies and refreshments

  • Having office gym/yoga sessions

  • Organising company socials/ activities.

Encourage a healthy work-life balance.

With the likes of Teams, Zoom, Slack and everything in between, employees are finding it more and more tricky to switch off from work and spend time with their families and friends outside the office. 

Almost half (48%) of employees surveyed as part of the Modern Families Index reported that working hours often make it challenging to spend time with their children, with around two-thirds stating that they regularly failed to leave work on time every day.

It’s easy to understand how employee happiness may decline due to an always-on office environment. But there are ways in which organisations can make changes to their policies to better suit their employees. These involve:

  • Remote working

  • Flexible working hours

  • Time limits on emails

Offer employee perks and benefits.

An excellent way to boost employee engagement and truly make them feel recognised for their efforts is by offering an employee benefits scheme. These platforms work to reward employees with endless discounts and savings to ease financial burdens and make the most of their time with loved ones outside of work. 

Here at Ello Group, we support companies by setting up loyalty and reward platforms tailored to their employees. We can offer a selection of dining rewardscoffee shop rewardsentertainment benefits, and cinema rewards

These rewards platforms are well worth considering for your organisation if you're wondering how to improve employee happiness and are keen to boost employee engagement. 

Improve employee happiness with Ello Group.

Hopefully, we’ve helped you work out how to improve employee happiness. If you’re intrigued by the sound of our benefits scheme, feel free to get in touch with our brilliant team of customer engagement specialists to put a new business strategy in place.

Join 3,000+ businesses already partnering with Ello.