Happy workers are more productive – and the numbers prove it

It’s often said that a happy worker is a productive worker, but how true is that for Aotearoa New Zealand? According to new research from Massey Business School’s Professor Jarrod Haar, Ngāti Maniapoto, Ngāti Mahuta, the answer is clear – and the impact might be greater than you expect.

A study conducted last month examined a representative sample of the New Zealand workforce by age and geography to determine if happy workers are more productive.

Those surveyed comprised of a slightly higher number of female respondents (63 per cent women, 1 per cent gender diverse). The average happiness score of workers, on a scale from zero to 100, was 66 per cent.

While most employees fell within a mid-range, there were some extremes. Nine workers reported a happiness score of zero, while 80 employees reported a perfect 100 per cent. By percentiles, the bottom 25 per cent had an average score of 5.0, while the top 25 per cent scored 8.0 or above.

How happiness impacts performance

The study measured three key workplace behaviours:

1. Helping co-workers by supporting colleagues when they’re overloaded
2. Helping the organisation by participating in voluntary activities like after-hours work events
3. Innovative behaviours by coming up with new ideas and pushing them through work teams.

Research has shown that companies that foster these behaviours tend to report higher productivity and profitability. So, what role does happiness play?

According to the study, the happiest employees, those scoring nine or 10 on the happiness scale (20.6 per cent of respondents), showed remarkable differences in performance. They were:

• 2.4 times more likely to be in the top group for helping co-workers
• 3.1 times more likely to be in the top group for helping their organisation
• 3.4 times more likely to be among the most innovative employees.

Who are the happiest workers?

Interestingly, the results showed that happiness levels were consistent across gender, age, job tenure, nationality and work location (remote or in-office). However, education appeared to be a key factor. Those with postgraduate qualifications were more likely to be in the happiest group, with 25 per cent of them ranking in the top happiness tier. That said, even 10 per cent of those without a high school diploma fell into this happiest category, proving that happiness at work isn’t limited to a specific background or role.

Professor Harr says the research confirms that happier workers are more productive, more helpful and more innovative.

“Whether they’re entry-level employees or senior managers, their positive outlook benefits both their colleagues and their organisations. So, for businesses looking to boost performance, investing in employee wellbeing isn’t just a nice idea – it’s a smart strategy.”