New Study Shows We Work Harder When We Are Happy

 

March 21, 2014—Happiness makes people more productive at work, according to the latest research from the University of Warwick.

Economists carried out a number of experiments to test the idea that happy employees work harder. In the laboratory, they found happiness made people around 12% more productive.

Professor Andrew Oswald, Dr Eugenio Proto and Dr Daniel Sgroi from the Department of Economics at the University of Warwick led the research.

This is the first causal evidence using randomized trials and piece-rate working. The study, to be published in the Journal of Labor Economics, included four different experiments with more than 700 participants.

During the experiments a number of the participants were either shown a comedy movie clip or treated to free chocolate, drinks and fruit. Others were questioned about recent family tragedies, such as bereavements, to assess whether lower levels of happiness were later associated with lower levels of productivity.

Professor Oswald said: “Companies like Google have invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37%, they know what they are talking about. Under scientifically controlled conditions, making workers happier really pays off.”

Dr Sgroi added: “The driving force seems to be that happier workers use the time they have more effectively, increasing the pace at which they can work without sacrificing quality.”

Dr Proto said the research had implications for employers and promotion policies.

He said: “We have shown that happier subjects are more productive, the same pattern appears in four different experiments. This research will provide some guidance for management in all kinds of organizations, they should strive to make their workplaces emotionally healthy for their workforce.”

 

ARTICLE:

"Happiness and Productivity," Andrew J Oswald, Eugenio Proto and Daniel Sgroi. In press, Journal of Labor Economics.

 

ARTICLE ABSTRACT:

"Some firms say they care about the well-being and ‘happiness’ of their employees. But are such claims hype, or scientific good sense? We provide evidence, for a classic piece-rate setting, that happiness makes people more productive. In three different styles of experiment, randomly selected individuals are made happier. The treated individuals have approximately 12% greater productivity. A fourth experiment studies major real-world shocks (bereavement and family illness). Lower happiness is systematically associated with lower productivity. These different forms of evidence, with complementary strengths and weaknesses, are consistent with the existence of a causal link between human well-being and human performance. "

 

See also, Healthy People = Healthy Profits sponsored by the U.K. Department of Work and Pensions.