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5 Ways to reduce HR costs and boost employee happiness

Updated: Feb 16, 2023

Boosting profitability and productivity is the top remaining challenge for many companies today, increasing employee happiness has quickly risen to become one of the highest priorities. Individuals are more concerned about work-life balance these days— research shows that employees prioritise personal development goals over financial rewards 68% of the time.

Employee happiness has a positive impact on employee engagement, which in turn affects employee performance. When employee happiness is at its highest it can boost productivity by 15-20%.

Scales, balancing cost of managing staff

1. Prioritise work-life balance

Many employers think the best way to boost employee morale is by offering a pay rise. But research shows that giving raises doesn’t work as well as boosting work-life balance.

That's why many companies and organisations offer benefits such as generous holiday packages and flexible hours to give employees freedom to spend time with their families and do what they love outside of work.

2. Make employees part of the big picture.

Most people are very good at doing their job. They’re not so good at making the bigger picture of what they do and understanding why it matters to the organisation, or how their role fits into the overall strategy for success. Great employers are great at communicating the big picture and giving employees a sense of belonging. They’re also good at showing their appreciation by thanking employees for all they do and recognizing their contributions.

3. Create a career pathway.

Create a clear career path and ensure employees have opportunities to learn, grow, and advance.

The key to retaining talent is to offer your employees a sense of purpose and growth. That can be done in many ways, but it starts with providing them with career opportunities that will help them build their skills and knowledge.

4. Encourage communication in common areas.

Offer a place for employees to gather and talk. The more open you are with your staff, the more likely they will be to feel invested in the company’s success. The best way to do this is by offering an area such as a cafeteria or conference room and break rooms. This will help employees feel included and engaged with their work environment.

Encouraging open dialogue can lead to better problem solving and less employee turnover.

5. Always say ‘thank you.’

Actions speak louder than words. It’s important to show appreciation and gratitude by thanking your employees, whether it’s for a job well done or just a small gesture. By regularly thanking your employees, you’re sending a strong message that they are valued and appreciated. You’ll have an easier time getting them to buy into the mission of your company, and it will reinforce their commitment to the organisation.

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