In my previous National Post articles, "Put On a Happy Face, Pile on the Profits," and "Hi Ho, Hi Ho, It's Off To Work We Go,". I argue that there is a clear connection between happiness and productivity. And during difficult economic times, with the pressures created by declining business revenue, layoffs and downsizing, this issue has become even more important.

So what do we know about employee productivity and feeling good?  Daniel Kahneman, professor of psychiatry at Princeton University and a winner of the 2002 Nobel Prize in Economics argues that "business is more about emotion than most business people would are to admit."  Sonja  Lyubomirsky, Ed Diener and Martin Seligman would suggest that employee well-being is a major factor in how the company performs.

A 2004 study by the American Psychological Association concluded that two-thirds of all respondents in a survey said their work lives had a high impact on their stress levels and one-quarter had booked off sick because of stress at work.

The Gallup Organization has conducted major studies on happiness, well-being and job performance, concluding that employee disengagement , which resulted in a decline in job performance, was at significant high levels in the workplace. The Gallup study showed a strong relationship between worker happiness and work engagement.

Organizations that understand the connection between worker stress and health and well-being can help their employees manage stress and find balance in their work and personal lives. When they do, productivity improves.

Ray Williams is Co Founder of Success IQ University and President of Ray Williams Associates, companies located in Phoenix and Vancouver, providing leadership development, personal growth and executive coaching services. www.successiqu.com