what makes people happy in the workplace?

In my previous blog, I explored the respective benefits of office working, working from home and hybrid working – and if there’s one thing that stood out to me regarding the shift towards hybrid working, it’s the clear link between employee happiness and workplace flexibility. Following on from that deep-dive, I wanted to take a look at the broader concept of workplace happiness and what employers can do to foster it. So the over-arching question in this blog is: What makes people happy in the workplace?

A Happy Workforce: The Foundation of Success

It’s no secret that happiness drives productivity. Content employees are not only more effective but are also far less likely to seek opportunities elsewhere. This is a vital consideration for employers navigating today’s competitive job market, especially when you consider the cost of replacing a member of staff. According to an estimate by The Society for Human Resource Management (SHRM), the cost to replace an employee is 6-9 months of their salary.

Of course, ensuring your workers are happy in their jobs isn’t always going to be easy. For a start, everyone’s different – their motivations and aspirations vary. But while you can’t account for different individuals’ precise wants and needs, you can strive to create an environment where employees feel fulfilled, valued, and motivated to achieve their best. To do this, you need to identify the key drivers of workplace happiness.

Key Drivers of Workplace Happiness

1. Flexibility and Autonomy
   
   As the results of our recent LinkedIn poll demonstrated, flexibility is no longer a job perk – it’s an expectation. By offering a hybrid or work from home model, or offering flexible working hours, your employees will feel trusted to manage their own time, and this sense of autonomy will lead to happier, more engaged workers.
   
   
2. Empathy in Leadership
   
   The best leaders tend to be those who really listen to their employees and support them, so that they feel understood and cared for. This might seem an obvious point – after all, if a manager is bossy, unfriendly and doesn’t listen, their team are unlikely to look forward to coming into work. But it’s more than that: truly empathetic leadership fosters trust, collaboration and a sense of security – all factors that directly impact workplace satisfaction.
   
   
3. Opportunities for Growth
   
   People thrive when they’re given opportunities to develop professionally. As Carol Dweck’s research has proven, if you encourage your workers to have a growth mindset (where they believe they can develop their abilities through hard work), they will ultimately achieve more and be happier in their work than those who have a fixed mindset (where they believe their abilities are innate gifts). By offering training programmes, mentorship, and clear progression pathways, you can develop a growth mindset throughout your team and significantly boost morale and motivation within your organisation.
   
   
4. A Culture of Positivity
   
   In 2025, workplace culture matters more than ever. Celebrating achievements, encouraging open dialogue, and creating inclusive spaces where employees feel appreciated all contribute to a happier workforce. The polar opposite scenario to this would be a toxic working environment and office politics, which definitely is not conducive to happiness and productivity! However, a strong positive culture from the top down (as well as wise recruitment from the outset) can help prevent this from happening.
   
   
5. Work with Purpose
   
   Increasingly, employees are looking for purpose in their work. To be truly happy in their role, they want to know that they are doing good, whether it’s for customers, people in their community or the planet. When the author and speaker Simon Sinek talks about ‘finding your why’, ‘why’ refers to a person’s greater purpose, their core belief or motivation that drives them to do what they do beyond just making money or achieving success. Help your employees to see the ‘why’ behind what they do and they will likely feel happier and more fulfilled.
   
   

What Does This Mean for Employers?

At OXBO, we understand the importance of aligning recruitment practices with employee happiness. We frequently see candidates gravitating towards roles where organisations promote flexibility, inclusivity and growth. Companies that focus on these areas not only enhance employee satisfaction, which in turn increases retention, but also strengthen their ability to attract top talent – because if a company’s culture is strong enough, word will spread, whether it’s in the form of positive Glassdoor reviews, industry awards or Great Place to Work recognition.

I recently discussed this topic with The Smarty Train, who are based down the road from us on Union Street. As consultants in professional training, coaching and talent development, they are true experts in the science behind employee happiness, so I asked them for some key tips for employers. They said:

“We know that happier employees are more engaged at work and more likely to feel valued and motivated in their roles. Taking steps such as improving inclusivity in the workplace, ensuring leaders communicate effectively with their teams and investing in learning and development can all help foster a sense of belonging and boost emotional wellbeing among employees, well beyond traditional salary and benefits.”
– The Smarty Train

Of course, recruitment is a factor in building or sustaining a positive work culture too. If you’re looking to hire people who care about more than just a payslip – people who value culture, purpose, and growth – get in touch with OXBO today.

Tim Hall is the Co-Founder of OXBO and Headhunter and Recruitment Partner for Renewables.

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May 2, 2025