Featured Research

from universities, journals, and other organizations

Happy Employees Are Critical For An Organization's Success, Study Shows

Date:
February 4, 2009
Source:
Kansas State University
Summary:
When employees have high levels of psychological well-being and job satisfaction, they perform better and are less likely to leave their job -- making happiness a valuable tool for maximizing organizational outcomes.

One's happiness might seem like a personal subject, but a Kansas State University researcher says employers should be concerned about the well-being of their employees because it could be the underlying factor to success.

Thomas Wright, Jon Wefald Leadership Chair in Business Administration and professor of management at K-State, has found that when employees have high levels of psychological well-being and job satisfaction, they perform better and are less likely to leave their job -- making happiness a valuable tool for maximizing organizational outcomes.

"The benefits of a psychologically well work force are quite consequential to employers, especially so in our highly troubled economic environment," Wright said. "Simply put, psychologically well employees are better performers. Since higher employee performance is inextricably tied to an organization's bottom line, employee well-being can play a key role in establishing a competitive advantage."

Happiness is a broad and subjective word, but a person's well-being includes the presence of positive emotions, like joy and interest, and the absence of negative emotions, like apathy and sadness, Wright said.

An excessive negative focus in the workplace could be harmful, such as in performance evaluations where negatives like what an employee failed to do are the focus of concentration, he said. When properly implemented in the workplace environment, positive emotions can enhance employee perceptions of finding meaning in their work.

In addition, studies have shown that being psychologically well has many benefits for the individual, Wright said. Employees with high well-being tend to be superior decision makers, demonstrate better interpersonal behaviors and receive higher pay, he said. His recent research also indicates that psychologically well individuals are more likely to demonstrate better cardiovascular health.

Wright said happiness is not only a responsibility to ourselves, but also to our co-workers, who often rely on us to be steadfast and supportive. In addition, Employee well-being affects the organization overall. Studies have shown that after controlling for age, gender, ethnicity, job tenure and educational attainment level, psychological well-being still is significantly related to job performance, according to Wright.

Wright said psychologically well employees consistently exhibit higher job performance, with significant correlations in the 0.30 to 0.50 range. Not only are these findings statistically significant, they are practically relevant as well, he said. A correlation of 0.30 between well-being and performance indicates that roughly 10 percent of the variance in job performance is associated with differences in well-being, while a correlation of 0.50 points to a substantial 25 percent of the variance.

In some of Wright's academic and consulting work, he has used a form of utility analysis to determine the level of actual savings tied to employee well-being. For example, in a sample of management personnel with average salaries in the $65,000 range, he found that being psychologically distressed could cost the organization roughly $75 a week per person in lost productivity. With 10 employees that translates to $750 per week in performance variance; for 100 employees the numbers are $7,500 per week or $390,000 per year.

When employees have low levels of well-being and job satisfaction, they are more likely to quit their job. Wright said employee turnover could be extremely costly for an organization losing a disproportionate share of its better employees. In one study, Wright found that the possibility of turnover was 0.57 times smaller for any one-unit increase in well-being. As with job performance, the knowledge of an employee's well-being can be highly useful in helping human resource personnel determine cost-effective employee retention strategies, he said.

Well-being has shown to be stable over time, though it can be influenced by situational circumstances through psychological-based interventions, Wright said. Methods to improve well-being include assisting workers so they fit their jobs more closely, providing social support to help reduce the negative impact of stressful jobs, and teaching optimism to emphasize positive thought patterns.

Wright said one controversial approach to improving well-being in the workplace is by seeking and hiring employees who have high levels of well-being.

Wright's findings on psychological well-being and job satisfaction have appeared in several publications, including the Journal of Management, Organizational Dynamics, the Journal of Occupational Health Psychology, the Journal of Applied Psychology and the Journal of Organizational Behavior.


Story Source:

The above story is based on materials provided by Kansas State University. Note: Materials may be edited for content and length.


Cite This Page:

Kansas State University. "Happy Employees Are Critical For An Organization's Success, Study Shows." ScienceDaily. ScienceDaily, 4 February 2009. <www.sciencedaily.com/releases/2009/02/090203142512.htm>.
Kansas State University. (2009, February 4). Happy Employees Are Critical For An Organization's Success, Study Shows. ScienceDaily. Retrieved September 20, 2014 from www.sciencedaily.com/releases/2009/02/090203142512.htm
Kansas State University. "Happy Employees Are Critical For An Organization's Success, Study Shows." ScienceDaily. www.sciencedaily.com/releases/2009/02/090203142512.htm (accessed September 20, 2014).

Share This



More Science & Society News

Saturday, September 20, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

The Cost of Ebola

The Cost of Ebola

Reuters - Business Video Online (Sep. 18, 2014) As Sierra Leone prepares for a three-day "lockdown" in its latest bid to stem the spread of Ebola, Ciara Lee looks at the financial implications of fighting the largest ever outbreak of the disease. Video provided by Reuters
Powered by NewsLook.com
U.S. Food Makers Surpass Calorie-Cutting Pledge

U.S. Food Makers Surpass Calorie-Cutting Pledge

Newsy (Sep. 18, 2014) Sixteen large food and beverage companies in the United States that committed to cut calories in their products far surpassed their target. Video provided by Newsy
Powered by NewsLook.com
Stocks Hit All-Time High as Fed Holds Steady

Stocks Hit All-Time High as Fed Holds Steady

AP (Sep. 17, 2014) The Federal Reserve signaled Wednesday that it plans to keep a key interest rate at a record low because a broad range of U.S. economic measures remain subpar. Stocks hit an all-time high on the news. (Sept. 17) Video provided by AP
Powered by NewsLook.com
Some Tobacco Farmers Thrive Amid Challenges

Some Tobacco Farmers Thrive Amid Challenges

AP (Sep. 16, 2014) The South's tobacco country is surviving, and even thriving in some cases, as demand overseas keeps growers in the fields of one of America's oldest cash crops. (Sept. 16) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins