A McKinsey report states that happiness can boost employees’ performance and engagement. 

According to Gallup, a highly engaged workforce can lead to an 18% decrease in attrition rates. What’s more? It can boost a company’s profitability by 23%. 

So, businesses should build a happy workforce to retain top talent, thereby ensuring long-term success. 

In this post, we will share six ways to invest in employee happiness for better productivity and retention.

#1: Create a Buddy System

A survey states that one in five working professionals switch jobs due to poor onboarding experience. 

Another survey reveals that the following are the key reasons for poor onboarding.

  • 71% – No clarity on what teammates to refer to or build relationships with
  • 53% – Lack of understanding of the organization’s core values 
  • 54% – Insufficient training on using tools and technology 

A buddy system reflects a knowledge-sharing process that can simplify an employee’s onboarding. 

In this system, the HR leaders create a pair comprising a new employee and a senior. The mentors guide the employee during their initial phase. They help new teammates understand their job roles. This fosters a happy workplace culture, thereby increasing retention rates.

Here are a few tips for creating a successful buddy system.

  • Develop a Solid Framework: HR leaders should assign mentors to new employees based on their job roles and define goals for both. 

For instance, they can assign tasks, such as new tools for teaching and learning. Besides, they can establish communication rules to make the buddy relationships successful.  

  • Set Clear Expectations: HR leaders should speak to mentors and create a checklist of expectations. For instance, they can explain the new hire’s role and understand their job role. They can further create a roadmap for the initial few months stating how the journey would be. They should convey this information to the new employees. 
  • Incentivize the Mentors: This can encourage mentors to deliver peak performance while helping new teammates. 
  • Ask for Feedback: The HR professionals should ask new hires whether they are comfortable with their buddy. If they dislike the teaching style of a buddy, HR leaders can change the mentor. Similarly, they can ask the mentor to improve their teaching methods. This can help ensure a successful buddy system. 

#2: Invest in Employee’s Professional Development

A survey reveals that 70% of employees are re-evaluating their professional life. They want job roles that they enjoy. 

Investing in employee development can help create learning opportunities for the team. Professionals can upgrade their skills and switch to profiles they like. 

This can boost their happiness, productivity, and loyalty toward the organization. 

Here are a few tips to consider.

  • Provide Career-Related Training: Conduct career-related training programs to help employees up their skills. For instance, invite industry experts or assist teammates in job role-related certification. 

Take some inspiration from Walmart. This eCommerce giant offers an education program called Live Better U (LBU). This has helped improve the productivity of Walmart’s team.

  • Invest in Helpful Tools: HR leaders can speak to the team managers to understand their challenges. They can request the management to invest in tools to streamline the team’s work.

Pro Tip: Implement Employee Advocacy Program

The employee advocacy program helps educate employees about the company’s products and services and encourages them to share their reviews on social media. 

For example, a business launching a new product can conduct its demonstration session and ask the team to share their views on LinkedIn. They can offer a special reward for the employee receiving maximum engagement. 

This allows employees to learn and gain in-depth insights into the business. Besides, it helps them expand networking opportunities and build relationships with like-minded professionals. 

The best part? This program can help businesses acquire new customers while retaining their top talent. 

Reports state that organizations with a successful employee advocacy program are 58% more likely to recruit the best talent. What’s more, firms are 20% more likely to retain them long-term.

Another report reveals that 86% of employees affirm that employee advocacy program has helped their professional growth. 

#3: Offer Perks and Benefits They Value

The employee benefits and perks an organization offers reflect its culture and value. So, provide benefits that are valuable for your employees. This can help boost employee happiness and productivity. Besides, this can improve the retention rate in the long term.

Here are a few key employee benefits to consider.

  • Healthcare Provision: Employee healthcare and fitness are crucial for an organization’s growth. Healthy employees tend to be more productive. No wonder, leading organizations like SmartBrief and GoDaddy offer 100% of their employee healthcare premiums. 
  • Flexible Working Hours: A survey states that 95% of professionals enjoy flexible working hours. They prioritize this perk over everything else. So, HR leaders should offer flexible working hours to keep employees happy. 
  • Fair Recruitment and Compensation Policy: HR leaders should create fair recruitment and compensation policies. This can help create a positive work environment and boost employee retention. 
  • Employee Recognition Program: Reports state that 91% of HR professionals believe that employee recognition and reward help in boosting retention rates. So, acknowledge your employees and reward the best talent.

#4: Host Community Events

Community events can help strengthen and nurture professional relationships. This can uplift employee engagement, thereby productivity and retention rates.  

Here are a few community event ideas to consider.

  • Donation Drive: Encourage your team to bring goods such as old toys, clothes, and other stuff to donate to the needy. Set up various drop-off spots around the office to collect the items. This can imbibe a sense of value and help form a close-knit, happy community.  
  • Movie Dates: Arrange movie dates for your teammates. This can help them unwind after a tiring day at work. Besides, they get an opportunity to collaborate and spend quality time.
  • Lunch Get-Togethers: Organize lunch or dinner get-togethers. This can help develop camaraderie between the team, thereby strengthening the work culture. 

#5: Create a Constructive Feedback Culture

A constructive feedback system can help employees grow professionally and personally. 

It can help HR leaders identify their team’s professional strengths, weaknesses, and behavioral aspects. They can use this information to build performance-boosting strategies. 

The result? This can boost employee engagement, thereby leading to a happy and productive workforce. 

Here are a few tips to consider.

  • Track employee performance consistently. For instance, you can implement performance assessment software, such as Lattice. This software helps track crucial KPIs and goals.
  • Connect with the team manager to discuss employee performance. 
  • Arrange meetings to convey constructive feedback to the team. Help them with strategies to overcome shortcomings and improve their work.

Such a culture can boost employee morale and ensure better productivity and retention. 

#6: Switch to Interactive Coworking Spaces

Coworking spaces involve sharing office space with one or more companies. Unlike traditional 9-to-5 offices, versatility and flexibility are at the forefront of coworking.

With interactive coworking spaces, employees get networking opportunities and a community of like-minded professionals. Besides, they get access to top-notch infrastructure and tools. 

What’s more? Work flexibility is an added advantage. So, switch to interactive coworking spaces for the best business outcomes. 

Here are a few crucial provisions to look for in coworking spaces.

  • Cost-effective pricing plans for rent, services, and maintenance
  • Diverse seating options, such as flexible, shared, and private cabins
  • Password-protected Wi-Fi and security
  • Spacious and ventilated area
  • Posh locality with connectivity to hospitals and airports 
  • Authorized entry to employees
  • Cafeteria 


A happy work environment is key to hacking employee productivity and retention.

The shared tips can help encourage employees to perform their best while staying happy. 

With a happy and productive workforce, businesses can achieve their long-term goals hassle-free. The team’s infectious attitude can translate into the best performances, thereby ensuring the best business outcomes. 

Author Bio

Aanya Rachel is the Content Manager at The Address, a coworking space in Indore, Madhya Pradesh. She is passionate about sharing her knowledge, experience, and extensive research in this field. She writes on a wide range of topics related to coworking, the growth of remote workers, startups, and real estate.