---
title: A Happy Employee is a Productive Employee
description: Discover the key to a productive workforce! Learn how employee satisfaction, accurate payroll, and a positive work environment can boost productivity and improve your bottom line.
---

[News - Exact Payroll ](https://blog.exactpayroll.com/news)

# [A Happy Employee is a Productive Employee](https://blog.exactpayroll.com/news/a-happy-employee-is-a-productive-employee)

 Written by [Exact Payroll](https://blog.exactpayroll.com/news/author/exact-payroll) | November 14, 2023

[Research on occupational well-being](https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6388150/) supports the hypothesis that happy employees are more productive. These studies offer these conclusions:

- When people are more satisfied with their jobs, they perform better.
- Engaged employees produce more and have less turnover.
- Greater positivity predicts better performance quality.
- More job satisfaction creates higher productivity over time.
- People who feel better at work use more effort to complete job tasks.
- In general, workers with a great sense of well-being have better work performance.
- “Happy” workers were found by an [Oxford University study](https://www.ox.ac.uk/news/2019-10-24-happy-workers-are-13-more-productive) to be 13% more productive.

Creating engaged and productive employees is the ultimate goal for any employer. Employee satisfaction has been found to be positively correlated with productivity, and ensuring accurate and timely payroll is an important factor in achieving this goal. When employees are happy with their payroll, they are more likely to be satisfied and engaged, leading to better productivity.

## **Importance of Payroll**

Employee compensation is not only about the amount paid, but also about the timing of payment. Payroll errors can quickly lead to employee dissatisfaction and loss of trust. Once trust is lost, it is hard to regain. Therefore, it is important to have an accurate and reliable accounting system to ensure that payroll processing is error-free and employees are compensated on time.

**Accurate, Timely Pay**

A research study by the [Canadian Payroll Association](https://www.talentcanada.ca/survey-reveals-importance-of-accurate-timely-pay/) found that the most important factor of job satisfaction is receiving timely, accurate pay as expected. Almost four out of five survey respondents across all age groups said that consistent and accurate pay was an essential benefit of employment, and they would refuse to work without it.

Not paying employees the correct amount on a timely basis for their payroll would lead to unhappy, unproductive workers. Three-quarters of the workers said they would quit. For comparison, health insurance, retirement benefits, flexible work, training, vacation time, and other work benefits were all considered less essential than accurate pay.

### **Living Paycheck to Paycheck**

Around 63% of Americans live paycheck to paycheck, which means that 125 million people are affected. Even high earners struggle to cope with nearly 75% of American workers in debt. Missing a paycheck causes intolerable stress as 60% of people can't cover a $1,000 emergency expense without borrowing. Some employers offer earned wage access (EWA) that allows employees to withdraw earned funds without waiting for payday.

**Improving Employee Engagement**

Paying a competitive salary with comprehensive benefits is the foundation for building employee job satisfaction and improving employee productivity. Other ways to increase employee engagement are creating an inclusive work environment, acknowledging employee accomplishments, nurturing a positive organization culture, offering work training, and continuing education with a career path to follow.

### **Inclusive Work Environment**

An inclusive work environment embraces diversity and builds a strong, positive team spirit. The goal is to increase employee satisfaction by encouraging pride in their accomplishments in the workplace and promoting recognition from peers for a job well done. 

### **Acknowledging Employee Accomplishments**

One of the greatest factors that can negatively impact job satisfaction is the lack of employee appreciation. It is highly recommended to have a formal recognition program in place and to encourage management to lead by example by providing positive feedback to employees on a regular basis. 

The cost of recognition doesn't have to be extravagant; a simple gesture like a card, a potted plant, a coffee mug, or an award certificate for being the "best employee of the month or the department" is enough to make an individual feel valued, especially if the recognition is given publicly in front of other team members.

### **Nurture a Positive Organizational Culture**

Encouraging a positive attitude among employees can have a ripple effect on the workplace. Happy, motivated employees can inspire their colleagues to do better and be more productive. It's important to maintain a positive and upbeat atmosphere, even when facing challenges or dealing with mistakes. 

Praise and recognition should be given in public, while criticism or correction should be done privately. If an employee is feeling down or struggling, it's important to lend an ear and offer support. Sometimes, just listening and acknowledging their feelings can make a big difference.

## **Key Takeaway**

A satisfied employee is not only good for workplace morale but also for the bottom line of a business. Proper payroll management plays a pivotal role in ensuring employee happiness, which in turn boosts productivity.

Want to ensure your employees' happiness with accurate and timely payroll? Discover how [Exact Payroll](https://exactpayroll.com/payroll-2) can help streamline your process and keep your team motivated. [Click here](https://exactpayroll.com/contact-us) for more information!

[View full post](https://blog.exactpayroll.com/news/a-happy-employee-is-a-productive-employee)

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