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The Importance of Keeping Employees Happy

Importance of Keeping Employees Happy

As a business owner, you probably think about how to keep your customers happy. It’s the secret to staying successful, right? You’re not wrong, but the whole picture doesn’t stop there. It’s true that keeping your customers happy is a necessity, but keeping your employees happy is also part of the equation. 

We all know that good employees are hard to find. Once you do find the right team for your business, it is important to keep them happy and engaged. The importance of employee happiness cannot be understated. Employee happiness is directly connected to customer happiness.

Don’t believe me? Let’s break it down a little further. Here’s what you get when you’re committed to keeping your employees happy.

Better Customer Service

There’s a major difference between how happy and unhappy customers treat their customers. Attitude is contagious. 

Think about your own experiences. Has a cashier at a store ever been indifferent or rude to you? What about at a restaurant or a coffee shop – has the host, server, or barista ever given you the impression that you were a burden to them? These bad customer service experiences stand out, and your business may not get a second chance to make a better impression. 

On the other hand, happy employees strive to treat every customer in a friendly manner. They do their best to complete their tasks at a top level, even if they need to ask for help at times. Happy employees know that their job is to do their best at all times. 

Positive Team Morale

Have you ever been part of a team where you felt like you just didn’t belong? Perhaps there was an undercurrent of tension, or some members were bullied or excluded. Team members that are happy and positive want to bring this positive attitude to their workplace. As a business owner, it’s important for you to encourage and develop this positive team morale. It can be a game-changer in the workplace.

Employees who aren’t happy at work may not feel empowered to do more than the minimum. Perhaps they are overburdened, overscheduled, and they simply don’t have the time to take on exciting challenges. As the leader of the business, it is important for you to be proactive about spotting challenges that might dampen team morale. 

You can ensure that all new employees are appropriately trained for their jobs. Promote a work environment where all team members are welcomed and where harassment is not tolerated. This will boost team morale and where people will be most empowered to perform at a high level.

Increased Profits and Productivity

Depending on the industry or job position, happy employees can sometimes generate more profits than their unhappy peers. A common example of this would be in a sales position. Employees who are happy at work may go the extra mile to educate their customers about all the company has to offer. An employee who is just coasting might do the bare minimum to close the sale. The difference between the two is that the happy employee has the motivation to do more.

In roles that are not based on sales, happy employees may still be more productive. One reason is that they may have the internal drive to succeed and perform. This can cause them to take on their day with enthusiasm. In some cases, they may even seek out additional work that is outside of their job description.

Do you have an amazing team? Have you shown them appreciation lately? 4 Ways to Really Show Employees You Appreciate Them can get you started.

Reduced Turnover 

Sometimes, a happy employee will leave the company even though they loved the job. Any time an employee leaves the company, it causes turnover, which can be costly in both dollars and in time. Time is needed to review applications and interview applicants.

When you decide who you will hire, time will be used to train the new hire. This time invested in a new employee is time that would be spent on other tasks. Turnover is a normal part of business, so it can’t always be avoided. However, investing in employee happiness can reduce it.

Are many of your good employees leaving? 6 Reasons Why Good Employees Quit explains why some of your best people may be jumping ship.

Improved Reputation

Turnover isn’t the only thing that cost having a group of unhappy workers. There can be other damages. Are there people employed with your company who aren’t committed to protecting the reputation of your business? Are there unhappy employees on your staff who simply don’t care what their colleagues or customers think? 

Unhappy employees who are not coached appropriately can show apathy. They may be careless with how they talk to customers, creating a bad reputation for your business. These employees may also disregard procedures you have in place to keep your business running smoothly. And, they may show a lack of commitment to the job. This can be done by consistently showing up late or calling out frequently. These actions create service disruptions for your customers. These are all signs that an employee is unhappy and, possibility, signs that an employee is about to quit.

In contrast, happy employees show that they are committed to creating a positive reputation for themselves and the team. They have a positive standard for how they conduct themselves. They arrive at work on time, as expected. These employees learn from mistakes and are committed to growth. 


It’s important to keep your employees happy. Happy employees create better customer service, and they help build positive team morale. Compared to unhappy employees, happy employees are less likely to make careless mistakes in the workplace that create a burden for their peers. If you believe that there are unhappy employees on your team, create an action plan to change the situation. Now is the time!

Erin Shelby on TwitterErin Shelby on Wordpress
Erin Shelby
Team Writer: Erin Shelby is a writer and blogger based in Ohio. Follow her on Twitter @ByErinShelby

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Find Your Way · Grow Your Business · Leading Your Team · Productivity · Sales · Your Mindset

Team Writer: Erin Shelby is a writer and blogger based in Ohio. Follow her on Twitter @ByErinShelby

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