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Updated Jan 17, 2024

10 Ways to Improve Employee Well-Being and Happiness

Max Freedman, Business Operations Insider and Senior Analyst

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You might think compensation is the most important factor in employees’ happiness at work, and you wouldn’t be alone: Among the 5,026 employed Americans Indeed and Forrester surveyed in 2022, 33% guessed that fair pay would be the biggest factor in employee well-being. But the study also found that this perception is wrong.

Fair pay is, of course, part of the equation, but it’s far from the only consideration. From inclusiveness to flexibility, there are many things employers must keep in mind when trying to boost morale. Below, we list 10 factors that are most associated with keeping employees happy at work and provide tips for how to improve your employees’ well-being.

What makes employees happy at work?

The Indeed and Forrester study found that these are the most important factors in employee well-being:

1. Feeling energized

Maybe you started your business so you could do things that excite you every day. After all, you know the adage: Find a job you love, and you’ll never work a day in your life. So you can probably see why your employees’ well-being will improve if the work you assign them lights their fire. In fact, 18% of survey respondents said feeling energized at work was the most important factor in their workplace well-being.

2. Having a sense of belonging

graphic of a group coworkers gathered around a computer

Team building is more than a buzzword; it’s a big factor in employees’ happiness. That’s because it can help employees feel like they belong on your team. The Indeed and Forrester survey found that, for 16% of employees, this sense of belonging is fundamental to workplace well-being. 

3. Feeling trusted

It’s long been the case that happy, loyal employees need to feel trusted. The Indeed and Forrester survey reaffirms this notion: 10% of respondents named feeling trusted as the most important factor in their well-being. Building this trust is great for your whole company. Employees who feel unafraid to start their work and make mistakes often become more efficient, productive team members. 

4. Achieving goals

Employees want to feel proud of their work. In fact, 10% of survey respondents said achievement was the most important factor in their workplace well-being. Sure, this starts with the employee; it’s on them to set goals that bring them happiness. But you can always support their goal-making process and guide them through it.

5. Being paid fairly

Only 8% of respondents said that fair pay was the crux of their well-being at work. This is substantially lower than the 33% of respondents who said they expected fair pay to rank highest. There are all kinds of ways to keep employees happy without a raise.

TipTip

Your employee salary ranges should fall within industry standards, and your raises should reflect inflation and employee performance shifts.

6. Feeling included

Feeling excluded is never a pleasant sensation, including in the workplace. In fact, 8% of survey respondents named a sense of inclusion as the hallmark of their employee well-being. To foster this inclusion, you should communicate with your employees often enough that they don’t feel like they’re going unnoticed and encourage your employees to do the same with one another.

7. Being supported by management

Supportive managers can give employees more autonomy, which is known to bring about happiness. According to the Indeed/Forrester survey, 7% of employees said managerial support was the most important factor in their well-being.

8. Having flexibility

graphic of a woman taking a selfie of her and a child

Working a traditional 9-to-5 in an office can be too restricting for some employees. These employees may constitute the 6% of survey respondents who cited flexibility as the most important part of their workplace well-being. Flexible work arrangements can help here; in fact, some employees will trade pay for flexibility.

9. Feeling appreciated 

When employees are not recognized for working hard and achieving results, it can sap their motivation. This might be why 6% of the employees surveyed named a sense of appreciation as the most important part of their happiness at work. This factor is easy to address – just regularly tell your employees why you appreciate what they do.

10. Getting opportunities to learn

Employees who grow in their roles often grow with the company in the long run. This has long been the primary reason employers offer professional development programs. The Indeed and Forrester survey found that for 5% of employees, learning opportunities are the most important factor in well-being at work. In addition to offering in-house professional development, you can provide the opportunity to take university classes.

Key TakeawayKey takeaway

Employee happiness is tied more to how employees feel at work than to how much you pay them.

How to boost employee well-being

Take these steps to improve employee well-being across your company:

1. Set clear company culture guidelines.

Younger employees may prefer a great company culture to a high salary. To build a positive culture for your company, find a balance of working hours and personal time that makes everyone happy. Establish a company mission that can drive your culture forward, and hire for cultural fit, not just skills. This framework provides a great path toward energizing employees and making them feel like they belong.

2. Seek – and act on – employee feedback.

Two colleagues with conversation bubbles above their heads

To improve employees’ well-being, you have to know what they want. For example, let’s say your latest employee survey shows that your team wants flexible work hours and locations. Shifting toward a hybrid model (in-person and remote options) can address this need, making your employees feel included in your business decisions. In general, acting on employee feedback is known to lower employee turnover and keep your team stable and happy.

3. Celebrate employees’ achievements.

It’s hardwired into us to seek appreciation and recognition, even over money. As the leader of your team, you’re in a unique position to provide both. Doing so can help you check off the trust, achievements, inclusion, appreciation and managerial support boxes from the Indeed and Forrester survey. Recognition can be as simple as a quick instant message or a minute out of your team meeting to congratulate a team member.

4. Introduce a professional development program.

Your company should be an educational home for employees if you expect them to enjoy working for you. Try setting up an internal professional development program where you coach them on skills they want to learn. If you don’t have the time for this or you lack the skills your team wants to learn, cover the costs for additional university education. You’ll show that you’re invested in your team’s success, which can be enough to keep them feeling well and happy.

5. Pay your employees well.

You should work annual employee raises of 4.5% to 5% into your labor budget as part of your employee well-being plan. At the same time, you now know that salaries aren’t the only key to employee happiness. As such, you should prioritize other ways to keep employees happy without raises, too.

Did You Know?Did you know

The average U.S. salary is $61,900 according to the BLS. Offering salaries much higher than that can help you attract employees.

Keeping employees happy is easier than you think

Happy employees are usually more productive, and they often stay with a company for the long haul. The more you improve employee well-being, the more likely your business is to meet goals. By recognizing what employees actually want, you can begin to take the steps to improve their well-being. Many of these practices are free and easy, such as making employees feel included, seeking their feedback and recognizing their achievements. So what are you waiting for? Start taking the steps to make your team as happy as possible.

Max Freedman, Business Operations Insider and Senior Analyst
Max Freedman, has spent nearly a decade providing entrepreneurs and business operators with actionable advice they can use to launch and grow their businesses. Max has direct experience helping run a small business, performs hands-on reviews and has real-world experience with the categories he covers, such as accounting software and digital payroll solutions, as well as leading small business lenders and employee retirement providers. Max has written hundreds of articles for Business News Daily on a range of valuable topics, including small business funding, time and attendance, marketing and human resources.
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