It’s not easy to put together a great team. It’s especially challenging when you’re a small business and don’t have the glitzy perks — free cafeteria, on-site gym and daycare, 24/7 massages — that tend to attract talent.
But as difficult as it is to hire top candidates, retaining them may prove even harder.
In a recent Robert Half survey, 42 percent of workers interviewed said they’re likely to look for a new job in the next year. Among respondents under 35, that number jumps to 68 percent. Losing employees, particularly your top performers, can be disastrous for business. And given Minnesota’s low unemployment rate, which was 3.8 percent as of August 2017, replacing them wouldn’t be easy.
Retaining talent begins by asking the question: Are your people happy?
The importance of happiness
The office isn’t Disney World, and a business owner’s primary concern is profitability. However, workplace happiness is an integral part of the equation for a healthy company. When employees enjoy their job and feel engaged, they are more productive than those who are just working for a paycheck.
The Robert Half report, “It’s Time We All Work Happy,” outlines the three elements of on-the-job satisfaction:
- Enthusiasm — a high-energy state that leads workers to create and seize opportunities.
- Interest — a state of deep focus brought on by stimulating and challenging work.
- Contentment — a state of calm satisfaction that arises after doing excellent work, coupled with appreciation from peers and management.
Over the long term, happy workers are less likely to look for a new job and more likely to recommend their employer to friends and family. In other words, what’s good for employees is good for your business.
How to add more happiness to the workplace
Does this mean you should install nap pods or stock the break room fridge with gourmet snacks? Employees might appreciate such gestures, but flashy new perks aren’t necessarily the answer. Job satisfaction is more intrinsic, and it’s not exclusive to big companies. In fact, our research found that the happiest workers are in businesses with fewer than 10 employees.
Making employees happy can cost little and has a high return on investment. With smart, motivated leadership, any company can boost job satisfaction. Here are five ways to raise your workers’ happiness quotient:
1. Keep your workplace culture in mind when hiring.
Do your company, current employees and future new hires a favor by bringing in people who will fit with the work environment. Someone who doesn’t mesh well with the corporate culture or their colleagues will not last long on the job, leading to wasted effort and all-around poor morale. Avoid a new hire nightmare by taking into account not only potential employees’ technical abilities, but also their personality and people skills. You might even consider having your staff meet with short-listed candidates and weigh in with their opinions.
2. Make work challenging and satisfying.
When handing out assignments, aim for that Goldilocks sweet spot: Tasks shouldn’t be so easy that an employee could do it on autopilot, nor should they be so complex that you set workers up for frustration or worse, failure. People are happy when they are able to do something well, but they also want to feel like they’re learning and progressing. If an employee is losing interest because the work has become routine, ask him to lead a business initiative or brainstorm a new product. On the flip side, if an otherwise talented employee has trouble with a task, provide professional development training.
3. Define career paths.
Talented workers are constantly thinking about their long-term future. They want to gain experience, learn new skills and move up the ladder. If they believe their professional prospects are at a dead end within the company, they’ll seek advancement elsewhere. The challenge for you is to show that even though a small business doesn’t have as many layers of hierarchy as in a larger company, there is still ample room for career progression. To keep ambitious employees happy, meet with them quarterly or semi-annually to discuss how they can achieve their goals. Perhaps they should work toward a certification or another degree, or undergo management training. Such discussions are especially important for members of Generation Z, who are typically eager to rise professionally.
4. Show appreciation.
Not every accomplishment needs to be praised. In fact, too many compliments can be counterproductive. But you should acknowledge the big wins and the above-and-beyond efforts. If not, employees may wonder why they’re giving it their all when their efforts aren’t recognized or rewarded.
When it comes to thanking workers, the keys are sincerity, and giving quick and specific praise — and when appropriate, making some noise. Let’s say the local newspaper covered your organization’s event because your marketing coordinator came up with an interesting story angle to pitch to a reporter, and the result was invaluable word of mouth advertising that led to additional business. When recognizing that employee, let the entire staff know immediately what she did, how she did it and why it is commendable. Lead the group in applauding her efforts, and then perhaps present her with a gift card and a handwritten note of appreciation.
5. Promote collegiality.
Remember how our study found that the happiest employees work in small companies? The reason could be their office’s family-like atmosphere, where people truly care for one another’s wellbeing. Management plays a large role in fostering positive workplace friendships. Your efforts could be as simple as planning monthly potluck lunches and celebrating birthdays with cake and coffee. Don’t forget to be an active participant and to get to know your workers better. One of the greatest sources of employee unhappiness is a strained relationship with the boss.
Workplace happiness isn’t a pie-in-the-sky concept, nor is it optional — not if your goal is a thriving business. When employees enjoy their work, feel respected and receive competitive salaries, they will continue to give their employer their best work for many years to come.
Elizabeth Hang is a human resources division leader in the Twin Cities-offices of Robert Half Management Resources, a division of Robert Half Inc.: 952.831.7240; elizabeth.hang@rhmr.com; www.rhmr.com.
