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Disengaged workers cost the U.S. economy $350 billion a year in lost productivity. Here’s how the happiest companies boost morale and the bottom line.

Secrets Of America’s Happiest Companies

BY Lydia Dishman7 minute read

“Being able to be truly happy at work is one of the keys to being happy in life,” says Heidi Golledge, CEO and cofounder of CareerBliss, an online career database. And what company couldn’t use a little more joy among its ranks?

In her book It’s Always Personal, Anne Kreamer points to recent research from Sigal Barsade of the Wharton School of Business that indicates positive moods prompt “more flexible decision-making and wider search behavior and greater analytic precision,” which in turn make the whole company more willing to take risks and be more open. On the flip side, analysis conducted by the Gallup Organization found that disgruntled employees disengage and cost the American economy up to $350 billion a year in lost productivity.

What exactly makes those staffers whistle while they work? CareerBliss just released its findings on the 50 happiest companies in America. The data, based on employee-submitted reviews, evaluated the key factors such as work-life balance, one’s relationship with his/her boss and coworkers, work environment, job resources, compensation, growth opportunities, company culture, company reputation, daily tasks, and job control over work performed on a daily basis. The answer to what makes a happy company is an amalgam of all these different factors, which might indicate that companies perceived as innovative would consistently snag the top spots. Not so. Apple and Google dropped from their top 10 spots down to #42 and #18, respectively. Meanwhile, pharmaceutical giant Pfizer climbed from #11 to take the top slot, followed by NASA and the U.S. Department of Defense.

Steve McClatchy, founder of Alleer Training and Consulting, whose client list includes top-ranked Pfizer, says a happy workplace is one that is committed to perpetual improvement, and not just as a line item on the balance sheet. “It’s one that supports employees in achieving goals, letting them fail, and learn from that,” he says. McClatchy believes happy employees don’t stay in one role for too long. “When there is movement in your life, there is satisfaction. Status quo is what creates burnout and ruts.” He says at companies such as Pfizer, staff achieves a balance between improvement, growth, and maintenance. Work burnout isn’t about too many hours spent on the job, he contends, it’s about feelings that come from improvement, or lack thereof. McClatchy points out that Pfizer regularly checks in with staff through employee surveys. “It’s a commitment to finding out obstacles to being happy. They don’t wait for exit interviews; they are proactive and continually assess their culture.” McClatchy believes a happy workplace isn’t necessarily free of conflict, either. At Pfizer, he says, management addresses conflict constructively. “It’s not with discipline but an approach that is solution-oriented.”

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Another way to reduce grumblings is to cultivate a culture of mindfulness and meaning, according to Jennifer Aaker, General Atlantic Professor of Marketing at Stanford Graduate School of Business. “New research shows there is a strong correlation between happiness and meaning–in fact, having a meaningful impact on the world around you is actually a better predictor of happiness than many other things you think will make you happy,” Aaker says. “When we can cultivate mindfulness and meaning in all that we do, including our work, we have the opportunity to influence not only our own well-being, but also the well-being of our family, friends, coworkers, and wider community.”

Steven Cowart, manager for Visual Display Systems at NASA, agrees.
“The projects I get to work on are incredibly interesting, challenging, and critical to the success of an experiment or mission. The research facilities are unparalleled in their capabilities and the accomplishments they’ve helped achieve. The tools we get to work with are the best. Our simulators and trainers are like “E” ticket rides at entertainment parks. Especially the centrifuges. We get to do things I would never have imagined had I not been hired here. Things that matter. Things that inspire people. Things that change our perception of our life on Earth and our place in the universe.”

Not surprisingly, another part of joy comes from a simple pat on the back. Globoforce, a software provider of social-recognition solutions, said 82% of employees it polled said that receiving recognition makes them more satisfied with their jobs. “A workplace is far likelier to be a happy place when policies are in place to ensure that people regularly get acknowledgement and praise for a job well done, and where people feel that their happiness at work matters to their employers,” says Gretchen Rubin, author of the best-selling Happiness Project.


ABOUT THE AUTHOR

Lydia Dishman is the senior editor for Growth & Engagement for fastcompany.com. She has written for CBS Moneywatch, Fortune, The Guardian, Popular Science, and the New York Times, among others More


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