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  • Jessika Noda Ofiyai

How Happy Employees Affect Your Bottom Line: The Giftagram Perspective

Updated: May 19

It’s no secret that happy employees can significantly contribute to a company's success. But have you ever wondered exactly how much of an impact your employee’s happiness has on your bottom line? Let’s dive in and explore this connection.

From a logical standpoint, it makes sense: happy employees are more likely to provide exceptional customer service, which, in turn, can lead to increased customer satisfaction and revenue growth. This seems straightforward, but quantifying this relationship can be challenging. In recent research, a study conducted by the Harvard Business Review, has begun to shed light on this complex issue.

In their study, researchers used internal data from a large global retail brand to investigate the correlation between employee happiness and business outcomes such as revenue and profits. They focused on the roles of customer-facing employees and analyzed three years of detailed employee and financial data from over 1,000 brick-and-mortar locations across the U.S.

The results were remarkable: researchers established a clear link between employee satisfaction and revenue. A store that moved from the bottom to the top quartile in terms of employee experience metrics could increase its revenue by over 50% and its profits by nearly as much.

"HR should finally be able to shed its age-old “cost-center” reputation and start stepping up to its rightful place — a strategic function that drives both customer experience and revenue.”

Investing in employee happiness isn't just a noble cause, it can also have significant business benefits:

Increased Productivity: Happy employees are more productive. A study from Oxford University’s Saïd Business School found that happy employees are 13% more productive than their unhappy counterparts. This isn't because they work longer hours but because they are more engaged and effective in their work.

Stronger Client and Customer Relationships: Happy employees can create stronger relationships with clients, leading to better customer retention and increased revenue. The employee's mood can affect the client's impression of the company, impacting their likelihood of returning and recommending the business.

Higher Retention Rates: Unhappy employees are more likely to leave, which can be costly for companies due to recruitment, training, and the dip in productivity as new hires get up to speed. Investing in employee happiness can therefore reduce these costs and improve morale.

So, what does this mean for businesses like yours? And how can a platform like Giftagram assist you in fostering employee satisfaction and, consequently, customer satisfaction?

Giftagram: Boosting Employee Happiness, One Gift at a Time

At Giftagram, we firmly believe in the positive impact happy employees have on a company’s bottom line. We have designed our corporate gifting platform