May 13, 2019
Contractors with a reputation for being difficult to work for and demanding may not be able to find and keep good employees. Job satisfaction and happiness are becoming more important as people want, and even demand, a positive work culture.
Good Managers are Key
According to the 2017 State of the American Workplace report by Gallup, nearly 67% of employees are somewhat or not engaged in their work. Gallup estimates that actively disengaged employees cost the U.S. $483 billion to $605 billion each year in lost productivity.
Managers account for at least 70% of the variance in employee engagement scores. Only 21% of employees strongly agree that their performance is managed in a way that motivates them to do outstanding work.
Gallup's
State of the American Manager
states that: "Having a bad manager is often a one-two punch: Employees feel miserable while at work, and that misery follows them home, compounding their stress and putting their well-being in peril."
Happiness is Good for Business
Jenn Lim, CEO and co-founder of Delivering Happiness, Inc., believes that happiness is key to success in business. Twenty years of research on the effects of happiness at work supports her viewpoint. A happiness-based work culture is tied to:
- 300% more innovation (HBR)
- 125% less burnout (HBR)
- 66% less sick leave (Forbes)
- 51% less turnover (Gallup)
- 44% higher employee retention (Gallup)
- 37% increase in sales (Martin Sellgman)
- 31% increase in productivity (Greenberg and Arawaka)
Create a Happiness-Based Culture
Lim outlines how to create a sustainable, purpose-driven culture using happiness as a business model in Delivering Happiness, the book that she co-authored with Tony Hsieh, CEO of Zappos.com, Inc. They suggest focusing on the principle of “Me-We-Community” instead of profits. As explained in Delivering Happiness, “me” brings a sense of wholeness, freedom, and accountability to the individual. “We” builds a team that works together in alignment with each other and the organization’s goals. “Community” focuses on a company’s ecosystem and creating experiences to WOW stakeholders (clients, contacts, suppliers, and the community).
Creating a happiness-based culture requires management to develop meaningful core values, being transparent with employees, building the right relationships and team, and being purposeful. The goal is for each individual to connect with the team which in turn will connect with the community as a whole.
Benefits Realized
Eagle Hill Consulting‘s Nation
al Workplace Culture Survey (March 2019) found that U.S. workers believe a company’s culture influences their job performance. Seventy-seven percent of the survey participants claim that their company’s culture encourages them to do their best work, 76% are more productive and efficient because of their company’s culture, and 74% stated that their company’s culture influences their ability to best serve customers. Furthermore, 63% of the employees surveyed attributed their company’s success to its culture.
Happiness drives success in an organization. When team members feel that their contribution to the company is meaningful, they have a purpose to come to work. A happiness-based culture can result in employees being excited about coming to work on Monday instead of leaving the job site on Friday. Imagine what this type of attitude can do to the success of your organization.
Feel free to contact any member of our team with questions at 610-828-1900 (PA) or 732-341-3893 (NJ). You can contact me at
[email protected]
. We are always here to answer your questions.
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
