Employee Happiness: Why We Should Care

Albert Schweitzer once stated that “success is not the key to happiness, happiness is the key to success.” Despite this widespread belief, employee happiness is often perceived by organizations as an insubstantial topic, irrelevant to bottom-line outcomes. Equally as problematic, past investigations have primarily utilized other positive emotion variables as a proxy for happiness, thus convoluting the relationships between happiness and work outcomes. As such, taking a scientist-practitioner approach, the present study sought to address the need to: (a) directly measure employees’ happiness, (b) link employee happiness to outcomes of organizational interest, and (c) assess the impact that organizational psychosocial factors have in decreasing employee happiness levels. Therefore, by measuring employee happiness, job demands, and organizational outcomes through a two-wave full panel design, the present study provided evidence for employee happiness’s ability to significantly mediate the relationship between job demands and organizational outcomes. Explicitly, a high level of job demands decreased employee happiness, which subsequently decreased employees’ organizational commitment, task performance, and contextual performance, while increasing turnover intentions and counterproductive work behaviors. These results carry significant theoretical and practical implications. Future QOL (Quality of Life) and organizational research would benefit from building on the present findings and establishing a nomological net of employee happiness. Additionally, practitioners have the opportunity to utilize this evidence to demonstrate the impact that employee happiness has on organizationally-relevant outcomes and the role that organizations can have in fostering employee happiness.