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The Alternative Board Blog

Want to Keep Employees Happy and Productive? Here's How

Jul. 23, 2025 | Posted by Lee Polevoi

“Employee happiness” isn’t something that gets itemized on balance sheets or accounting spreadsheets. Nonetheless, it can be a crucial factor in determining successful employee recruitment and retention, which in turn can be essential to the bottom line.

Why is employee happiness or high morale so vital? Numerous studies indicate that when employees are happy (or, in other words, engaged), this translates into increased productivity, a drop in absenteeism and turnover, and a higher degree of creativity and willingness to take on new responsibilities. And what business doesn’t profit from these benefits? 

Here are tips on boosting your team’s satisfaction with their workplace environment:

 

Let people know what’s expected of them. 

Employees fare well when they clearly understand the expectations and duties of their position. Rather than making them try to figure things out on their own, savvy managers make sure their team members fully grasp the tasks and deadlines involved in a project. It also helps to set specific goals or milestones for a project, such as 30-day, 60-day, or 90-day targets.

 

Strive for transparency and offer empowerment.

Employees who don’t get all the information needed for their job duties can get frustrated when their work is deemed “insufficient.” As much as possible, practice transparency in the workplace so people understand the goals and strategies involved.

Equally important is empowering team members to come forward with ideas and suggestions on improving their jobs and the workplace environment. “Everyone brings unique experiences to perspectives to the table,” notes The CFO, “and only by considering all views can a team achieve the best possible outcome.”

 

Sponsor “feel good” team-building activities.

People usually feel better about their jobs when they have strong relationships with their co-workers. To promote this valuable sense of connection, look at teamwork activities that promote engagement and collaboration. This can take the form of monthly team lunches (where both on-site and remote employees are invited), or some other group activity. 

Why not also celebrate employee birthdays and other key life events? Again, this helps solidify the sense that “we’re all in this together.”

 

Let employees share their thoughts.

It may seem old-fashioned, but employees may respond favorably to having a place to air their complaints or offer helpful suggestions. These days, this can take the form of an actual suggestion box, or you can offer a similar service online. 

Some comments will require immediate action, while at other times business owners may note long-term themes. In any case, “by receiving and recording these suggestions, you have a great glimpse at both singular and recurring issues.”

Be sure to offer the option for employees to remain anonymous when contributing to the suggestion box. This can help promote greater participation.

 

Make sure you maintain an upbeat attitude.

Remember, employees look to their leaders for guidance and attitude. “A smile is contagious,” notes Business.com. When a CEO, business owner, and/or department manager present themselves in an upbeat manner, “employees are more likely to support one another, communicate freely, and engage in productive conversations, all of which contribute to a happier and more collaborative work environment.”

 

Recognize and reward employee achievements and their efforts.

We’ve said it many times before: Your hard-working employees deserve praise and recognition and will likely remain with an organization that excels in this area. Look for opportunities to offer specific praise to an employee and consider doing so in both a private and public venue. 

Recognize those individuals who contribute to helping the company achieve its goals. Salute both their achievements and the work they put in to reaching an objective. But as the Better Business Bureau observes, “Even if an initiative doesn’t yield the desired results, praise the effort, dedication, and creative problem-solving” involved. This promotes employee efforts “to keep innovating without fear of failure.”

“Happy employees” doesn’t seem like a concept with much downside. Remember, happy employees are most inclined to shine at their jobs and remain a part of your business.

Want to learn more? Register for our free TAB Boss webinar, “Employee Motivation that Works.” 




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Written by Lee Polevoi

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