In my three decades of working in business and academia, I’ve studied, spoke, and written about the transformative power of employee wellbeing. It’s not just about creating a pleasant work environment – it’s about driving business performance and fostering a culture of success. I’ve seen researched a great deal how incorporating the measurement of employee wellbeing as a management performance metric can significantly enhance organizational outcomes and feel there is a case to be made that a portion of a managers performance evaluation should take into consideration the emotional wellbeing of their team.

The shift towards this holistic approach to employee wellbeing is not just a trend, but a necessity in today’s dynamic business landscape. I believe wellbeing measures are a key to long-term success and the companies that understand and implement this are setting themselves up to lead the way in the future of work.

The Power of Wellbeing in the Workplace

The concept of wellbeing in the workplace extends beyond mere job satisfaction. It’s about the overall physical, emotional, and mental health of employees. It’s about their engagement levels, their sense of purpose, and their sense of accomplishment at work. This holistic view of wellbeing is encapsulated in the PERMA model, developed by positive psychology pioneer Martin Seligman. The model outlines five key elements of wellbeing: Positive Emotion, Engagement, Relationships, Meaning, and Accomplishment.

These elements are not standalone – they are interconnected. Positive emotions can foster better relationships, which in turn can enhance engagement and meaning at work. This comprehensive approach to wellbeing is what sets successful organizations apart.

Why Measure Employee Wellbeing?

The measurement of employee wellbeing is not just a feel-good initiative. It’s a strategic imperative that directly impacts business performance. According to a study by the University of Warwick, happy employees are 12% more productive. Furthermore, Gallup found that engaged and happy employees outperform their less engaged peers by 21% in terms of productivity.

These numbers are not just statistics – they translate into real business outcomes. Higher productivity means better business performance, and happier employees mean lower turnover rates. The bottom line is clear: investing in employee wellbeing is good for business.

The Role of Leadership and HR in Promoting Wellbeing

Leadership style, communication, and relationship with the team significantly influence workplace happiness. For instance, transformational leadership, characterized by inspirational motivation, intellectual stimulation, and individualized consideration, has been linked to higher levels of employee wellbeing.

On the other hand, HR policies, culture initiatives, and employee support play a crucial role in fostering workplace happiness. Companies like Zappos and Salesforce have set remarkable examples in this regard. Zappos, for instance, has a unique culture book that is updated annually with unedited employee inputs about the company culture. Salesforce, on the other hand, has integrated philanthropy into its business model, providing employees with seven days of paid volunteer time off annually.

Challenges to Creating a Happy Workplace

Creating a happy workplace is not without its challenges. Resistance to change, lack of management support, and inadequate resources are some of the common obstacles. For instance, the failure of Yahoo’s remote work policy in 2013 serves as a cautionary tale about the importance of considering organizational culture and communication practices when implementing wellbeing initiatives.

However, these challenges are not insurmountable. With the right approach and commitment, organizations can overcome these hurdles and create a work environment that fosters happiness and wellbeing.

Measuring Workplace Happiness

Organizations can measure workplace happiness through various methods, including employee surveys, feedback sessions, and wellbeing assessments. Tools like the Utrecht Work Engagement Scale (UWES) and the Job Satisfaction Survey (JSS) can provide valuable insights into employee wellbeing.

Commercial tools like Limeade, Virgin Pulse, and LifeDojo are also available, which offer comprehensive solutions for measuring and improving employee wellbeing. These platforms provide features like health assessments, personalized wellbeing plans, social recognition, and analytics.

Prioritizing and measuring employee wellbeing is not just beneficial—it’s a business imperative. As leaders and HR managers, it’s our responsibility to create an environment where employees can thrive. By doing so, we’re not just enhancing the lives of our employees, but also driving our organizations towards greater success.

The journey towards creating a happy workplace is a continuous one, filled with learning and growth. But the rewards – in terms of business performance, employee satisfaction, and organizational success – are well worth the effort.

Interested In Learning More?

If employee wellbeing and PERMA are topics you would like to explore further, I would recommend checking out the following:

Books:

• Flourish: A Visionary New Understanding of Happiness and Well-being by Martin Seligman
• Your Strengths Blueprint: How to be Engaged, Energized, and Happy at Work by Michelle McQuaid and Erin Lawn
• Drive: The Surprising Truth About What Motivates Us by Daniel H. Pink
• The Happiness Advantage: The Seven Principles of Positive Psychology That Fuel Success and Performance at Work by Shawn Achor
• Flow: The Psychology of Optimal Experience by Mihaly Csikszentmihalyi
• The Happiness Hypothesis by Jonathan Haidt 
• Authentic Happiness: Using the New Positive Psychology to Realize Your Potential for Lasting Fulfillment by Martin Seligman
• The How of Happiness: A New Approach to Getting the Life You Want by Sonja Lyubomirsky

Podcasts:

• The Psychology Podcast with Scott Barry Kaufman: Exploring all things related to the human mind, including work by positive psychologists like Martin Seligman and Mihaly Csikszentmihalyi.
• WorkLife with Adam Grant: Go inside the minds of some of the world’s most unusual professionals to discover the keys to a better work life.
• The Science of Happiness by the Greater Good Science Center: Research-tested strategies for a happier, more meaningful life.
• The Happiness Lab with Dr. Laurie Santos: Examine the latest scientific research and the surprising and inspiring stories that will alter the way you think about happiness.
• Making Positive Psychology Work with Michelle McQuaid: Uncovering tested, practical ways to help people move from functioning to flourishing at work to better navigate the challenges and opportunities our world faces.