Work-life balance, happiness index, happiness quotient—corporate jargon is multiplying
Companies are splurging to keep employees happy instead of engaged, throwing budgets around while business success takes a backseat. Free snacks, fancy retreats, dopamine-hit perks—all while engagement, ownership, and real impact take a back seat.
But here’s the catch: happiness is fleeting. It feels good, but it doesn’t drive performance, retention, or innovation. Over-prioritize it, and even a thriving business can turn into an expensive joke.
HRs! Take notes to build teams that not only are happy but engaged like honeybees Vishal Sharma, Global Head HR, Glenmark Pharmaceuticals in our HR & Workplace Podcast, The CHRO Mindset.
Ready? Let’s take your first doubt,
Can Happy Employees Still Leave?
So, the answer is ‘Why can’t they?’
If you think happiness will keep your employees from leaving—you might rethink because it fades soon. Yes, we know that happy employees are 13% more productive but work culture like relaxed office, perks, and celebrations might create momentary joy. They don’t address what truly matters—sustained growth and success.
Want to know more about what drives results and success in companies? Tune into this episode on our leading HR podcast in India!
We are not born to be happy, we are born to survive
Vishal Sharma
So, if your retention strategy is all about making employees ‘happy’, don’t be surprised when they start looking elsewhere.
But Why Is Happiness Not Enough for Employees?
Because happiness is temporary! (And that’s life!)
A happy employee may still leave for a better offer. Want to know why?
Here’s the bitter truth.
- It brings comfort which kills progress.
- It doesn’t keep employees engaged.
- It’s a mood, not a mission.
Rather something that keeps teams engaged and stay for longer tenures are purpose, challenges, mission, and meaningful work.
Trust me, if you give all this to your employees, the organization really doesn’t have to worry about creating something artificial happiness.
Vishal Sharma
On the other hand, engaged employees don’t just clock in and out. They hold on for the long haul, fueling performance and loyalty. You might be thinking now, “Why aren’t we preaching employee happiness?” That’s a good question! So, buckle up, because here’s the backstory.
Companies have been hit in the head despite a happy culture.
- No-Manager Experiment at Zappos had a downfall– The company removed managers to boost autonomy, but confusion led to a mass moveout of employees.
- Google’s benefits and perks couldn’t stop layoffs despite offering world-class benefits.
- Airbnb’s “Belong Anywhere” culture prioritized employee well-being but had to lay off 25% of staff during financial downturns due to trembling business.
- Facebook gave its employees the ‘Best Perks,’ Yet Engagement Dropped due to declining morale and attrition in later years.
- Amazon, despite offering competitive salaries and comprehensive benefits, experienced short employee tenures—average 1.0 year.
Now you know it’s not your giggling employees that keep the business running, then…
What Makes Employees Happy at Work?
It’s the Sense of Purpose! (Seriously!)
Engaged employees with a strong sense of purpose believe working for your company will help them grow personally and may even turn down big job opportunities.
To learn more secrets to make them happy, listen to the CHRO Mindset, the best leadership podcast nationwide.
And you know what, companies have gone far to achieve this. Don’t believe it? Here’s proof.
- HubSpot’s “HEART” (Humble, Empathetic, Adaptable, Remarkable, Transparent) culture ensures employees feel connected to the company’s mission, leading to a 92% employee retention rate!
If your majority of the workforce stays with you, let’s say more than five years, eight years, or 10 years, that’s how you would rely on that organization is doing something fantastic
Vishal Sharma
- Salesforce’s “Ohana” culture and 1-1-1 philanthropy model were especially built to keep employees deeply connected to their work, proving that purpose, not just perks, fuels long-term commitment.
- Similarly, Netflix’s Culture Deck, originally published by Reed Hastings and Patty McCord, became one of the most influential corporate culture documents in history. It emphasizes freedom and responsibility, where employees are given autonomy but held to exceptionally high-performance standards. Instead of job security and perks, Netflix prioritizes top talent, radical candor, and results over effort.
Now let’s look at the bolder example…Google!
How Google Does It All—A Fascinating Example!
Psychological safety and innovation are the key elements of Google’s culture that supports engaging employees. A notable feature of its culture is their 20% Time policy, where employees are encouraged to spend 20% of their workweek on projects, they’re passionate about, even if those aren’t directly related to their job role.
Okay, and what does it lead to?
- It supports creativity, and
(Possible reasons for groundbreaking innovations like Gmail and Google News.)
Google also encourages open communication channels to support engagement through its regular practice, “TGIF” (Thank God It’s Friday) in which,
- Employees at all levels are encouraged to share ideas freely with leaders
- Leaders discuss company matters and answer employee questions–openly.
(This practice boosts engagement and builds trust.)
And now the learning part. Google emphasizes employees’ continuous learning by resources like,
(It encourages employees to grow professionally and become confident about their skills.)
So, in a nutshell, the autonomy, creativity, transparency, and personal growth keep its workforce not just happy but genuinely engaged and aligned with the company’s goals.
Want to turn around things like Google? Subscribe to the CHRO Mindset Podcast, your exclusive leadership podcast for HR.
Wondering, What’s the Biggest Takeaway for You?
Keep your employees engaged—always!
Engagement empowers employees to take ownership and invest in their roles, leading to a higher quality of work and better business outcomes. Engaged employees have an 18% lower turnover rate, according to Zippia. Simply put, while happiness may feel good in the short term, engagement is the long-term key to achieving sustained productivity and growth.
Need more takeaways and insider tips on productive employees? Listen to the complete episode on The CHRO Podcast, your reliable HR & Workplace podcast!
If you are asking….
Is ‘Engagement’ the New Term for ‘Happiness?’
You bet it is!
It fuels purpose, prevents boredom, and drives productivity. Employees who feel engaged own their work and deliver high performance.
And if you are asking ‘how to keep employees engaged,’ here’s your first step.
| What to Do? | Do This! |
| Tell them their work matters. | Assign meaningful work and listen to them if they suggest better ways to achieve goals. |
| Give them a “thank you” or public shout-out. | Organize monthly effort-recognizing events and recognize their effort behind a success. |
| Work on their knowledge | Make certifications compulsory. Reinforce their learnings. More certification, more perks. |
| Let them take ownership | Dedicate one week for them to show leadership and calculate whose leadership managed the work more effectively. |
| Allow mandatory leaves and breaks. | Make some leaves compulsory. For example, launch ‘need a break’ leaves and encourage employees to apply for them. |
| Ask for feedback. | Launch a suggestion box where employees anonymously drop ideas to fix problems and improve culture. |
| Focus on fun also. | Create fun activities like nominating weekly leaders or collect points by completing tasks to foster a sense of competition. |
| Give them newer projects and challenges. | Facilitate cross-functional abilities by introducing employees to newer departments and learning to coordinate. |
Watch this interesting episode on why happy employees keep your business running on our HR leaders podcast, The CHRO Mindset