Demonstrating value for employees

New study shows we work harder when we are happy

Tony Latter blog, People Analytics

Happiness makes people more productive at work, according to the latest research from the University of Warwick.

Economists carried out a number of experiments to test the idea that happy employees work harder. In the laboratory, they found happiness made people around 12% more productive.

Professor Andrew Oswald, Dr Eugenio Proto and Dr Daniel Sgroi from the Department of Economics at the University of Warwick led the research.

This is the first causal evidence using randomized trials and piece-rate working. The study, to be published in the Journal of Labor Economics, included four different experiments with more than 700 participants.

During the experiments a number of the participants were either shown a comedy movie clip or treated to free chocolate, drinks and fruit. Others were questioned about recent family tragedies, such as bereavements, to assess whether lower levels of happiness were later associated with lower levels of productivity.

Professor Oswald said: “Companies like Google have invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37%, they know what they are talking about. Under scientifically controlled conditions, making workers happier really pays off.”

Dr Sgroi added: “The driving force seems to be that happier workers use the time they have more effectively, increasing the pace at which they can work without sacrificing quality.”

Dr Proto said the research had implications for employers and promotion policies.

He said: “We have shown that happier subjects are more productive, the same pattern appears in four different experiments. This research will provide some guidance for management in all kinds of organizations, they should strive to make their workplaces emotionally healthy for their workforce.”

Tony Latter

CEO and Co-Founder of The Happiness Index – Tony is passionate about helping organisations utilise technology to revolutionise the way they use feedback. With 15 years’ experience of growing companies, Tony has a wealth of experience. His insights were recently featured in The Sunday Times for an article on what drives engagement in today’s workplaces, he regularly speaks at HR events, such as the CIPD’s annual conference and sits on judging panels for various business awards. His expertise in the world of business, HR and technology recently led to The Happiness Index being awarded the title of “Best New Business” at the European Business Awards 2018.

Like this post? Help us by sharing it with your networks...