How to create a happier workforce

Workplace satisfaction is an important factor of an organisation’s success that is often overlooked. Many companies focus on output and measure KPIs rather than looking at the bigger picture.

Happy employees are less likely to resign, saving on recruitment costs. They’re also more likely to support each other, creating a healthy workplace culture. A good workplace culture is more likely to attract – and retain – good talent.

SEEK’s Workplace Happiness Index 2024, release late last year, found that only 55% of Australians are happy at work. Additionally, 17% (almost 1 in 5) reported being either somewhat or extremely unhappy.

It’s worthwhile for leaders to take a closer look at employee happiness and explore ways they can improve happiness in their teams. 

We spoke to Transitioning Well Co-Director and Organisational Psychologist, Justine Alter, to find out what managers and employers can do.

SEEK’s research found that the number one driver of happiness at work is purpose. Having a sense of purpose at work means feeling what you’re doing is making a positive impact in some way, whether it’s contributing to an organisational goal or fulfilling a personal objective. 

Justine explains that it’s essential for organisations to connect their employees with work that has meaning. That could mean switching up their role to be more aligned with their personal values or creating a clear link between their duties and the company’s success. “People are looking for meaning and purpose in their work, and when these elements are missing, it can significantly impact their workplace happiness,” she says.

Beyond feeling aligned to a purpose in their role, Justine believes that outside factors also affect happiness at work.

“Workplace unhappiness often stems from the complex intersection of personal and professional challenges,” she says. “Right now, we're seeing people grappling with significant financial uncertainty, inflationary pressures, and low wage growth – all while trying to adapt to constantly changing work environments.”

“The SEEK data shows us that different generations are experiencing workplace happiness differently,” she continues. “Our younger workers (Gen Z) report only 50% happiness levels compared to 61% among baby boomers. 

This differentiation in data is important to keep in mind when approaching ways to improve employee happiness.” 

SEEK research shows a correlation between happiness and the willingness to go “above and beyond”. It also shows an inverse link between happiness and job seeking. justine delves further into this, explaining how easy it is for something that starts as an “individual experience” to quickly spread and affect an organisation’s “entire ecosystem”. 

“We often see when one person is struggling, it can impact their immediate team's dynamics,” she explains. 

From there Justine says, it can easily spread further – impacting broader teams and even seeping into workplace culture. She expands on the data: “When employees are unhappy, it affects their ability to connect with colleagues, engage in their work, and contribute to the organisational culture. Creating an environment where people can bring their whole selves to work and feel supported through all of life's transitions is so important.”

SEEK research reinforces this, showing that colleagues and workplace culture are both important happiness drivers for some generations.  

SEEK’s Workplace Happiness Index paints a broad picture of the state of the Australian workforce. Justine suggests that it should simply be a jumping off point for leaders, and used to drive important conversations that help determine the reasons employees are unhappy at work.

“The real insights come from understanding individual stories and experiences,” she says. “There is no one-size-fits-all approach to employee wellbeing and happiness. We need to recognise that different employees face different challenges at different stages of life, and work with them at that level.”

To do that, Justine says it’s all about listening.

“Leaders need to create safe spaces for honest conversations and really listen to what people are saying,” she says. “When building these spaces for open communication, do so across multiple channels. That way, employees can share their experiences and concerns in the format they feel most comfortable with.”

When measuring the top drivers of happiness at work, SEEK research showed that some of the traditional motivators – such as salary and job security – ranked lower than you might expect, at ninth and 14th place respectively. 

Looking at three of the top happiness drivers, Justine shares how leaders can influence positive change.

“Purpose tops the list because employees need to feel their work matters and contributes to something.” 

Organisations can address this by:

• Clearly articulating their mission

• Ensuring team goals align with broader organisational objectives

• Regularly communicating the impact of people's work

“This isn't just about having values on a wall – it's about making those values live in daily decisions and actions.”

“Management capability is an area many organisations need to invest in.”

Developing strong management capabilities means: 

• Teaching managers how to have meaningful conversations about workload and stress

• Helping managers understand how to support different team members through various life stages 

• Equipping managers with the emotional intelligence to lead effectively. 

“In practice, this looks like training in having difficult conversations, providing feedback, and recognising early signs of stress or disengagement in their teams.” 

“The connection between company culture and stress levels is particularly important. Organisations need to move beyond just talking about wellbeing and toward actually embedding it in their culture.” 

This means: 

• Creating environments where people feel safe to speak up about workload concerns

• Ensuring flexibility is normalised and accessible to all employees (not just parents, for example) 

• Setting and communicating clear boundaries between life and work.

“The key is understanding that these elements are interconnected, says Justine. “Strong management supports positive culture, which in turn helps manage stress levels, allowing people to focus on their purpose and responsibilities more effectively.”

Building a happy and supportive workplace, Justine explains, is how you’ll get the most out of your workers.

“People need purpose, support, and understanding to truly thrive at work,” she says.

“The key is creating conscious workplaces that support people with empathy, understanding, and practical strategies for success.”

Access the complete Workplace Happiness Index Report here.

Source: Research conducted for SEEK by Nature, between April and June 2024 via an online survey. Responses were gathered from over 1,200 individuals currently in the workforce (either employed or looking for work), aged 18-64, and living in Australia and New Zealand.