Researchers from the University of Warwick in the UK found that people who are happy at work are about 12% more productive. Shawn Anchor, author of The Happiness Advantage, has quantified the benefits of a happy company – sales increase by 37%, productivity 31%, and accuracy on tasks improves by 19%, not to mention the health and quality of life improvements for staff.
You might think providing perks such as free food, massages in the office, on-site medical services and gym facilities, would ensure a happy workforce. Google has led the way in perks for some time, even ensuring its building designs are fun.
But the equation is not that simple – it’s not just a case of perks in, happiness out. While such benefits are helpful in attracting people to work at your firm, they are not that effective at improving company performance. No wonder Google is keen to stress that it’s passion not perks that are the biggest contributor to its success.