We intuitively want to believe that happy employees are a good thing and that no good employer would be happy with dissatisfied employees, there is no – zero – correlation between employee happiness and business performance. Hundreds of studies over the years have tried to find one, and failed. Happy, satisfied employees are not more productive; in fact, there tends to be a negative correlation… some level of dissatisfaction with the status quo fuels passion and drive. It creates a gap between where we are and where we want to be that impels us forward.
On the other hand, there is a direct and well documented correlation between engaged employees and business outcomes. Engagement is the measure of how committed employees are, and how attached they are to delivering the team’s goals and objectives. It stands to reason that the more engaged the group, the higher the business unit’s performance and profitability.
Simply stated, it is engagement and not happiness or satisfaction that sets the stage for sustained high performance.
Interestingly, CLC’s research showed a precipitous decline in employee engagement overallglobally in the quarter leading up to the market crash in 2008.
We always talk about engagement as a predictor of business performance in the context of an individual business unit or department… and of course there were other forces at play leading up to the crash. But it does raise the tantalizing question: to what extent was the crash either caused or exacerbated by the lowest levels of workforce engagement ever recorded?
There are clear, tangible ways to build the engagement of your workforce, and it’s not about better meals in the staff cafeteria and more paid time off.
Referenced from: http://www.hiringsmart.com/articles/608/Happy_Employees_are_not_Necessarily_Productive_Employees/