A happy workforce is a productive workforce. A 2014 study from the University of Warwick (pdf) found that happiness improved performance by 12%. So how can you make sure your employees aren’t spending their lunch break looking for a new job?
1 Tell people what you want, not how you want it
It’s easy to say you want a team full of people who show initiative, but much harder to create a culture that allows people to demonstrate it.
“Wherever you can, talk to people about what you want them to achieve,” says Isla Wilson, founder of business growth consultancy Ruby Star Associates. “So, ‘we need to make sure that all proposals are high quality,’ rather than, ‘can you complete this checklist for every proposal to show me that you’ve spell-checked it and read it, and then can I re-read every document before it leaves the building’.”
She adds: “Providing freedom within boundaries is a good way to encourage and reward initiative and to build a team who are happy – and accountable. It’s much easier to say than it is to do, but it’s worth the effort.”
2 Be consistent in your decision-making
Most businesses need to put commercial interests first from time to time. But if you’ve set an expectation that you’ll accommodate people’s individual preferences, doing so can make the team feel unhappy.
A good example of this is a small business owner who has historically always approved all holiday requests, but eventually needs to stop doing so to provide a core level of service for customers.
Be clear with your team about how decisions will be made. What does the business need? What do we, as a team, need? What does each individual need or want? If the team knows that decisions are made in this order, its members will have a clear expectation of how decisions are reached.
3 Be clear on work-life balance
In a competitive employment market, getting work-life balance right can help to retain the best team members and reduce workplace stress.
But Wilson says: “It is worth spending some time working out what is achievable. If you know that you have busy periods around project deadlines for instance, it may be better to talk in terms of how you balance busy weeks with quieter periods, rather than set an expectation that people can always walk out the door every day at 5.30pm, regardless of client requirements.”
4 Don’t build a business that reflects your fears
Many people start companies having already worked for large businesses. Wilson says: “We often come to our business with a fixed idea of how we don’t want to treat staff, which can be a positive basis on which to build a culture.”
But it’s important to look at these approaches in the round. “If you have previously worked for a business where people ‘live or die’ by their results, you may wish to build a more supportive culture.”
While this is a good instinct, it’s also important to think about how people are held to account for performance – so that you don’t build a highly-supportive culture where some people don’t pull their weight and others have to pick up the slack.
5 Look at the workspace
To create a happy workforce, you need to understand your people and how they work, then build the workplace offering around their needs.
It can be practical things. Chris Moriarty, managing director, UK and Ireland, of Leesman, the world’s largest index of workplace effectiveness, says: “Our research has revealed that a large number of employees are not particularly content with the noise levels in their workspace.
“Of those who say they’re happy with noise levels, 82% report that their environment allows them to work productively.” If that’s the case in your office, it’s worth putting up those partition walls or buying some sound-dampening textiles.
6 Beware of organised fun
Time together as a team can be valuable, so it might be tempting to think that a day at the races is an appropriate reward for good sales. But too much organised fun can breed resentment.
Wilson says: “Sometimes too many expectations about socialising together can undo great work on building happy and productive teams.” Don’t underestimate the impact of leaving your staff free to socialise with people they don’t work with.
Content on this page is paid for and provided by Hiscox, sponsor of the Adventures in Business hub on the Guardian Small Business Network.
