Industry Insight: The Impact of Happiness on Productivity

Zoe 15 July 2013

Reports on the state of the hospitality industry have recently begun to look more hopeful, with figures suggesting that it will outperform the wider economy over the next two years.

However, proprietors and managers will be understandably cautious throughout this period and will be relying on the productivity of their current staff to help them maximise any upturn that occurs. Jessica Pryce-Jones is joint founder and partner of the iOpener Institute for People & Performance and her she examines how the productivity of staff is directly linked to their feelings of happiness and well-being in the work place.

Happiness at work can be finely calibrated. The iOpener Institute has collected over 30,000 management interviews assessing the identifiable key components of Happiness at Work:– positive factors such as recognition, respect, and time on task; as well as negative indicators such as likelihood of leaving or sick days off.

Our research, which compares the hospitality sector with the average score across all industries, found that it is behind the curve in most areas that contribute to Happiness at Work. For example, workers in the sector are 8% less likely to be happy with the culture of their workplace; this includes appreciation of the values of the company and having a sense of belonging to the organisation. In addition, trust between hospitality workers and their employers is low (also 8% below average). This means that they might feel that decisions made are unjust or that they don’t trust the company to protect their interests and treat them fairly.

The end result of this is a detrimental effect on productivity. In particular, the research points to the sector spending 4% less time than average ‘on task’, when compared with other industries.

But, how can managers look to enhance the happiness, and with it the productivity, of their staff? There are five key drivers of productivity:

Driver 1: Effort: This involves providing staff with clear goals, and precise and well-articulated objectives that lead to those goals.

Driver 2: Short-term motivation: Good organisations encourage motivation by helping partners and staff own issues and take responsibility, at a level that fits with an individual’s skills, strengths and expertise levels.

Driver 3: Culture: Performance and happiness at work are both boosted when people feel they fit within their organisational culture. Firms can address this by being as transparent as possible about why decisions are made and why resources are allocated in the way they are.

Driver 4: Long-term engagement: This is about commitment, the long-term engagement between employee and employer. Firms need to regularly and convincingly communicate the practice’s corporate strategy, along with tangible proof of how that strategy is being implemented.

Driver 5: Self-belief: If staff are not confident, they won’t make decisions, take risks, or invest in development. Confidence is the gateway to productivity and our data shows that a primary indicator of confidence is that things get done.

To get your personalised, free report measuring your performance and Happiness at Work complete the questionnaire here