How to Create a Happy and Productive Work Culture

How to create a happy and productive work culture

Finding a happy and healthy workplace is increasingly important for job seekers. To ensure you’re attracting top talent, shore up your workplace with the following eight tips.

1. Establishing mentorship creates a happy work culture.

A culture of mentorship creates a supportive atmosphere that encourages professional growth and empowers employees to take on tasks confidently. Employees who have been meaningfully mentored, in turn, become excellent leaders willing to mentor more team members.

“The most collaborative employees are more productive and less likely to leave,” explained Sam Naficy, CEO of workforce analytics software Prodoscore. “So, encouraging internal knowledge sharing, communication, training, mentorship, etc., is a great way to keep productivity and morale high.”

Consider creating an open-door policy that encourages and welcomes employees to discuss new ideas and make suggestions. They’ll realize you won’t ignore or criticize them, and they’ll become more confident. You’ll also foster an atmosphere of mutual trust, which is vital to an organization’s success.

Leaders who become active mentors and participants in their employees’ self-expression, creativity, and self-betterment tend to be rewarded with loyalty and increased business productivity.

2. Adopt wellness initiatives to improve your work culture.

In our digitally driven world, addressing the pitfalls of office work — long stretches of sitting, typing and gazing at screens — is essential. A workplace that passionately supports employees’ physical and mental well-being through flexible benefits and initiatives will be rewarded with a stronger and more loyal team.

“One of the best ways to create a happy and productive work culture is by aligning company goals with employee well-being,” noted Cheryl Swirnow, CEO of CMS Consultants. “This starts with clear communication and transparency in headcount planning to ensure employees feel supported and not overburdened.”

Some ways to prioritize wellness in the workplace include:

• Healthy initiatives: Consider providing healthy snacks, lunchtime yoga classes or a fun, noncompetitive fitness challenge. Your employees will benefit from your efforts and appreciate being part of an organization that prioritizes their health.
• Preventive measures: Proactively address physical and mental issues to reduce absenteeism and increase productivity. For example, provide annual flu vaccinations and support employee mental health by making counselors available; they can help with issues like financial troubles, stress or depression.
• Office adjustments: When designing or improving the physical workspace, consider that an office environment affects productivity and health. An uncomfortable environment — poor lighting, low-quality furniture, outdated equipment — can complicate workers’ days. These nagging stressors could lead to workplace absenteeism due to medical issues like back pain, carpal tunnel syndrome and other ailments. A well-lit, visually pleasing environment with soothing colors and ergonomically designed equipment (such as adjustable chairs and standing desks) can significantly impact employee satisfaction and performance.

3. Promote communication and inclusion to improve workplace culture.

Communication and inclusion lay the groundwork for a positive work environment where everyone feels safe and equally valued.

• Communication: Open communication fosters innovation and agility — two key success elements leaders want to see in their teams. Communication also fosters mutual trust and respect. Nurturing employees’ individuality in an environment where they can express their true selves promotes career confidence and encourages them to contribute new ideas.
• Inclusion: Additionally, diverse and inclusive companies support all employees regardless of race, color, religion, sex, gender, national origin, etc.; this helps everyone feel respected and safe. A diverse and inclusive environment helps create a happier workplace by boosting employee morale, engagement, performance, innovation and retention; this improves the team’s ability to pivot and adapt when necessary. As a bonus, prioritizing inclusion can improve your company’s reputation.

4. Flexibility can contribute to a happy workplace culture.

Flexibility gives employees freedom, allowing them to create a positive work-life balance and grow their careers.

Here are a few ways to be flexible in your business:

• Flexibility with job descriptions: Companies can give employees more flexibility by steering clear of narrow job descriptions and fixed offices. Let team members cross-pollinate their skill sets with a shared purpose and common goals. You’ll make the most of everyone’s strengths and give projects greater meaning.
• Flexibility with work hours: The 9-to-5 workday is increasingly falling out of favor. Moving away from rigid schedules and organizational structures spares employees the sense of drudgery that comes with the weekday grind. That sort of prescriptive atmosphere gets workers excited about only one thing: the weekend. Today, employees highly value flexible schedules: Nearly half of respondents to a Skynova survey said a flexible schedule was more important than their salary. The four-day workweek trend is also getting attention. Some companies, including Panasonic and thredUP, have shifted to a 32-hour workweek at full salary.
• Flexibility with remote work: Creating a remote work plan can improve employee happiness while helping you attract and keep top talent. In fact, the Jobvite Job Seeker Nation Report found that 40 percent of workers would even be willing to accept a lower salary if it meant they could work remotely.

In a changing workplace landscape, job flexibility — including flexibility with hours and remote and hybrid work situations — can significantly contribute to employee happiness.

5. Invest in fun to create a happier workplace.

Some employers overlook “fun” activities, assuming they’re a waste of money and time. However, the opposite is true. Injecting fun into the workplace pays dividends for everyone, and it shouldn’t be an afterthought. Proper budgeting is crucial.

“Having a well-thought-out budget that accounts not only for operational needs but also for employee engagement — like team outings and celebrations — can contribute to a positive work environment,” Swirnow advised.

An organization’s investment in joy can be as simple as encouraging employees to take five-minute breaks from their desks; this activity reduces muscle fatigue and eyestrain and improves focus. For a company with deeper pockets, investing in fun can mean building inspiring green spaces on its campuses where employees can take walks.

Workplace teamwork is crucial. Team-building activities that fortify relationships among colleagues can also be a source of renewal and satisfaction. Allow employees to suggest fun activities, giving them a sense of ownership in the company’s quest for happiness.

6. Reward employees generously to improve workplace happiness.

Everyone wants to feel their contributions are valued. To help employees feel valued, company leaders should celebrate team members’ accomplishments through rewards, incentives, promotions and employee bonuses.

“Bonuses, when appropriately planned, are another excellent tool to incentivize and reward employees, contributing to both happiness and productivity,” Swirnow suggested.

Another way to reward employees is to provide opportunities for self-improvement and lifelong learning. Initiatives and benefits that support employees’ continued education and training are the ultimate expressions of how deeply an organization appreciates and supports everyone’s continued growth.

7. Be supportive to foster workplace happiness.

Perhaps the most meaningful way to ensure your employees’ long-term happiness and health is to prepare for the inevitable moments when they’re anything but happy and healthy. We all experience bumps in the road. Plus, we all dread what could happen if an illness, loss or other unfortunate circumstance renders us unable to fulfill our work duties.

A leader who shows concern and eases someone’s way — a sincere, trustworthy supporter rather than another source of pressure — can win an employee’s appreciation for life. Model empathy and compassion in the workplace, and encourage similar citizenship behaviors in your colleagues. It can also help to have an employee assistance program in place.

8. Prioritize a positive workplace culture.

Creating a positive work culture is a continuous process that requires regular attention, thoughtful planning and corrective actions. It might be the most crucial task company leaders can undertake. When employees experience true happiness and health at work, success tends to follow.

“A strong company culture is the backbone of a thriving organization — driving higher employee engagement, retention and recruitment while fostering productivity, adaptability and resilience,” said Naficy. “It’s not a ‘nice-to-have’ but a critical driver of success.”

Ensure that your company’s compensation, hiring, management and policies align with your positive workplace culture goals.

Benefits of a strong company culture

Creating a strong company culture can provide a host of benefits to your employees and your company, including the following:

• Retaining employees: When employees are happy and feel valued, they have little reason to look for another job. High employee retention levels eliminate the costs associated with recruiting and training. You’ll also avoid periods of reduced productivity while new employees learn the ropes. Plus, you won’t have to offload unfilled positions’ extra work to already overburdened employees.
• Attracting top talent: When you have an excellent company culture, word gets around and you’ll be able to hire for a cultural fit. Top job candidates will be more likely to apply to open positions at your company and may even be willing to work for a lower salary. If you want to attract and retain millennials or Gen Zers, the cultural effect is even more pronounced because these younger generations prioritize work-life balance and flexibility.
• Increasing productivity: Not every employee is as productive as the next, but a strong company culture can enhance engagement — boosting productivity. According to a study by the University of Warwick, highly engaged employees can be up to 12 percent more productive than their less engaged co-workers. This benefit multiplies depending on how many of your workers are highly engaged. Engaged workers also tend to be more creative — helping the company thrive and grow.
• Removing silos: One of the hallmarks of a traditional, rigid corporate structure is distinct silos within the organization that operate semi-independently with limited communication and interaction with other departments. Without a bigger-picture perspective, mistakes are made and money is lost. With an open culture and flatter corporate structure, communication can flow from one area to another so that the benefit of a particular decision or initiative to the company as a whole can be assessed. Engaged employees will consider their work’s broader implications and gain more problem-solving creativity. Additionally, the company can be more agile — responding quickly to market or competitive space changes.
• Improving customer interaction: Happy customer-facing employees, including sales and customer service representatives, provide better and more pleasant service. Disengaged employees are unlikely to go above and beyond for customers.

A happy workplace is a valuable investment

Investing in company culture is a win-win. Happy employees are better workers and tend to stay with the company longer. The company, in turn, enjoys increases in revenue, productivity and customer satisfaction.

“A strong company culture improves employee retention, engagement and collaboration,”  Swirnow emphasized. “When employees feel valued, they’re more likely to stay invested in the company’s success, even during challenging budgeting cycles.”

Creating a happy, productive workplace is an ongoing process that becomes part of a company’s culture and helps ensure its success.

Skye Schooley contributed to this article.