Why Employee Happiness Should Be Important For Businesses.

Did you know that the happiness of your employees contributes to the Social aspect of Environmental, Social, and Governance (ESG)? 

Employee happiness is an essential component of a company’s success. Happy employees are more productive, motivated, and have a higher level of commitment to their work. The social aspect of ESG is also critical as it focuses on the well-being of employees, customers, and communities. In this blog post, we will explore the connection between employee happiness and the social aspect of ESG.

ESG investing has gained popularity in recent years as investors have recognized the importance of considering environmental, social, and governance factors when evaluating companies. While environmental and governance factors are crucial, the social aspect of ESG has a direct impact on employee happiness.

The social aspect of ESG covers topics such as employee satisfaction, employee retention, employee training and development, diversity and inclusion, and health and safety. Companies that prioritise the social aspect of ESG tend to have higher employee happiness levels. This, in turn, leads to better overall business outcomes, including increased productivity, higher profitability, and lower employee turnover.

Employee satisfaction is a key factor in determining employee happiness. Companies that invest in employee satisfaction initiatives, such as creating a positive work environment, providing opportunities for employee development, and recognizing employee achievements, are more likely to have happy employees. Happy employees are also more likely to stay with their current employer, reducing employee turnover and related costs.

Another critical factor in employee happiness is diversity and inclusion. Companies that embrace diversity and inclusion create a sense of belonging for employees, leading to increased motivation and productivity. A diverse workforce also brings different perspectives and ideas to the table, leading to better problem-solving and innovation.

Finally, health and safety are essential components of the social aspect of ESG. Companies that prioritise employee health and safety create a culture of care for their employees, leading to increased employee satisfaction and loyalty. Ensuring that employees are safe and healthy also reduces employee absenteeism and related costs.

Overall, the social aspect of ESG plays a critical role in employee happiness. Companies that prioritise employee satisfaction, diversity and inclusion, and employee health and safety are more likely to have happy employees. Happy employees, in turn, lead to better overall business outcomes. As companies continue to embrace ESG investing, it is essential to remember the critical role that employee happiness plays in a company’s success.

Don’t know where to start with the Social aspect within your company? Contact AVS Sustainability for free advice or Social Performance Assessment.