Why workplace happiness should be your next strategic investment
Discover how workplace happiness drives business performance—and how HR tools like People First make it easy to support happier, more productive teams.
In 2025, any forward-thinking business has probably already reconsidered what truly motivates its people. Employee engagement surveys, productivity tools, culture initiatives – are all efforts to answer one simple question: Are our people happy at work?
The reality is workplace happiness simply isn’t just a perk. It’s a strategic priority and the data backs it up. Research from the University of Oxford found that happy employees are 13% more productive. Meanwhile, Gallup’s 2023 State of the Global Workplace report reveals that only 33% of US employees are engaged at work, signaling a major opportunity for improvement and impact.
But here’s the challenge: True happiness at work isn’t about snacks in the breakroom or gym discounts. It’s about building a culture where people find purpose, connection, and a sense of progress.
The science of happiness and "flow"
Happiness at work isn’t just about feeling good, it’s about doing meaningful work in an environment that truly supports people. Psychologist Mihaly Csikszentmihalyi called this state “flow” – a mental zone where individuals are completely absorbed in a task, energized, and enjoying the process. Flow happens when a task is challenging, but not overwhelming, requiring just enough effort to stretch a person’s skills, without snapping them.
It’s in this flow state that creativity, focus, and productivity skyrocket. But to achieve it consistently, organizations need to create conditions that remove barriers, reduce distractions, and give people the tools to thrive.
Why companies should invest in workplace happiness
Prioritizing a happy workplace is crucial. According to MHR research, 86% of employees would leave a job that didn’t offer a positive employee experience. That’s a staggering number – one that should concern every HR team focused on retention, performance, and culture.
What we’re seeing now is a shift from short-term perks to long-term purpose. And it’s not about ping pong tables or casual Fridays. It’s about recognizing employees, giving real-time feedback, enabling professional growth, and making sure people feel seen and supported. When done right, investing in happiness delivers tangible business outcomes that include:
- Lower turnover
- Stronger employee engagement
- Better collaboration
- Higher output
- A more resilient company culture
How to build a happier workplace
So what does a happiness-focused workplace actually look like?
Switched-on HR leaders are shifting to more human-centered practices, focusing on emotional connection, psychological safety, and creating space for meaningful work. Of course, tools can’t replace good leadership but they can make it easier. Here’s how People First helps HR leaders hardwire happiness into daily work:
Cross departmental communication
The People First newsfeed creates a space for organization-wide updates, shoutouts, and shared successes, breaking down silos and building one cohesive culture.
AI that frees up time
The platform automates repetitive admin, from resume parsing to sentiment analysis, so HR teams can focus on people, not paperwork.
Real-time recognition and feedback
Celebrate wins, big or small, and share instant feedback that shows the impact of work. People First lets anyone give kudos that the whole company can see, helping build morale and connection.
Check-ins that count
The platform makes check-ins easy to schedule and document, encouraging regular manager-employee conversations focused on growth, wellbeing, and goals.
A space to connect
Employees can create digital communities – think running and book clubs or wellness circles – to strengthen company culture and build connections that go beyond work.
Learning that sticks
MHR’s Learning Management System (LMS) empowers employees to grow their skills and see a future within the company – an essential driver of long-term happiness.
The Plan Group: What happiness looks like in action
For MHR customer The Plan Group, investing in workplace happiness meant finding the right tools to empower its people.
“Where you work has a massive impact in your whole life,” says Susie Wilson, Head of HR & Risk. “And if you've got a happy workforce, you’ll have less employee turnover, less time and money spent on recruitment, and a much more productive and engaged workforce that produces better-quality work.”
To build stronger engagement and show teams their contributions are valued, The Plan Group implemented People First. The platform has helped spotlight great work through recognitions, given employees a voice, and supported growth through regular check-ins and learning opportunities that boost employee engagement.
The results? Higher employee morale, stronger connection across departments, and a noticeable lift in performance.
Happiness is your business advantage
Business success today is inseparable from employee happiness. And HR teams are in a unique position to lead that change.
When employees are focused, fulfilled, and connected, they do their best work – and they want to stay. And that’s not just good for your people; it’s great for business.
Learn more: Sign up for our World of Work 2050 webinar
Join futurist Tom Cheesewright in our next webinar to explore the business case for workplace happiness, featuring practical, science-backed strategies to boost performance and engagement.
Register once and unlock access to our new interactive video hub, where you can watch previous episodes on-demand and get updates on future sessions.
