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7 Ways to Create a Happy and Motivated Workplace

Motivate employees by being positive and a team player.

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Written by: Julie Thompson, Senior WriterUpdated Jan 24, 2025
Shari Weiss,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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A happy work environment is something business owners and leadership teams can’t afford to ignore. While there’s no one formula for creating a happy and motivated workplace, allowing employees to have a say in their roles and the organization’s objectives is a great start, as are transparent communication, trusted relationships and a sense of purpose.

We’ll highlight the elements of a happy workplace and share seven best practices for building and maintaining a harmonious workplace culture.

Did You Know?Did you know
Happy employees are productive employees. When you take small steps to create a positive and motivational work environment, there will likely be fewer work-related conflicts, less workplace absenteeism and increased productivity.

What constitutes a happy workplace? 

Richard Birke, chief architect at JAMS Pathways, described a happy workplace as one that ensures all employees’ comfort and security and where everyone feels “psychologically safe.” 

“A happy workplace is one in which people are comfortable with their colleagues — peers, supervisors, team members and members of the community — and with their jobs,” Birke explained. “They feel appreciated, and they are able to give and receive feedback, offer suggestions for improvements, have clarity about their roles, and know that they are part of a team all pulling together in the same direction.”

In addition, a happy workplace often includes these elements: 

  • A sense of being essential to the organization 
  • Knowledge that their hard work is appreciated
  • An understanding that their work has an impact on the company’s goals 
  • A sense of shared goals with the greater organization 
  • Participation in a strong company culture
  • Opportunities for career advancement

Concrete employee benefits are also essential elements of a happy workplace. These may include the following perks: 

TipBottom line
According to a TrackingHappiness.com survey of 12,000 hybrid workers, the opportunity to work remotely at least part of the time increased employee happiness by as much as 20 percent.

How to create a happy and motivated workplace 

A happy, motivated workplace won’t happen overnight. However, even small changes can improve your company culture and employee satisfaction. Focus on the following seven best practices to get on the right path. 

1. Appreciate and recognize your employees.

Many managers make the mistake of waiting until annual reviews to share employee feedback. This delay can leave employees feeling unacknowledged, impatient and discouraged, resulting in lower motivation and reduced productivity.

Birke stressed that an “It will all take care of itself” approach won’t cut it if you’re trying to create a happy workplace. “While some people are naturally motivated, others need leadership and guidance,” Birke explained. 

Instead of — or in addition to — annual reviews, regularly acknowledge your employees’ efforts and successes via informal feedback. If you want to set employee performance goals, do so positively and with frequent guidance. 

Additionally, rewards and incentives can improve morale significantly. A study by Workhuman and Gallup found that investing in employee recognition can save a 10,000-person engaged workforce up to $16.1 million annually by reducing employee turnover.

Appreciated employees are often empowered employees. “A positive environment at work is generally the result of deliberate work,” Birke noted. “Treat the workplace like a garden. Plant the right seeds, and nurture their growth.” 

TipBottom line
If your employees feel unappreciated, change the conversation by recognizing their hard work, sharing specific and positive feedback, and saying thank you.

2. Be flexible.

Running an office with a tight schedule and few breaks can be a recipe for an unhappy, unmotivated team. 

While some businesses have stricter hours and rules than others, try to incorporate flexibility into your operations whenever possible. For example, allowing flexible schedules gives employees more control over their work-life balance. Even in the most formal workplaces, ensuring adequate breaks and manageable workloads is essential to prevent workplace burnout and reduce turnover rates.

Sheldon Arora, CEO of StaffDNA, emphasized the importance of balancing work and play to create a happy and productive work culture. “It’s easy to go too far when trying to create an engaging and enjoyable work environment,” Arora cautioned. “Maintaining a balance between encouraging fun and ensuring productivity is crucial.” 

Arora advised setting clear boundaries to retain professionalism while striving to strike a balance between productivity and a fun environment.

3. Remember that happiness is contagious.

Happiness is not a solitary experience. A smile is contagious. When the boss is smiling and positive, employees are more likely to feel relaxed, communicate openly, worry less about mistakes, and ultimately learn and perform better.

The “facial feedback hypothesis” suggests that smiling can influence emotions. If you’re feeling down, engaging in something that makes you smile can help improve your mood. Turning a frown upside down might help lighten the atmosphere for everyone around you.

When leaders maintain an upbeat demeanor, employees are more likely to support one another, communicate freely, and engage in productive conversations, all of which contribute to a happier and more collaborative work environment.

Did You Know?Did you know
A study by the University of Essex found that producing even a weak smile for 500 milliseconds was enough to induce the perception of happiness.

4. Promote organization.

Disorganization exacerbates negative feelings and clutters the mind. It is essential to remain organized to promote a healthy workplace. Being disorganized increases stress and decreases productivity, which results in lower employee morale. Cleaning your office promotes a sense of calm and makes it easier to focus.

Here are some ways to be more organized:

  • Provide shelves and drawers for specific items.
  • Declutter your workspace.
  • Keep the floors dry and clean to prevent falls.
  • Clean the bathrooms and floors with disinfectants to prevent the spread of germs.
  • Maintain essential light levels and sufficient availability of fresh air.
  • Ask your employees to take care of their workspace.
TipBottom line
Lighting affects productivity and mood, so consider lowering cubicle walls to let in natural light, using LED lights, adding indoor plants, and using warm, neutral-toned paint colors.

5. Be a team player.

Leading by example is the hallmark of a great boss. Be there for your employees when they need you most, even if it means jumping in and working alongside them. This willingness to help can provide a strong sense of camaraderie and respect. Show your team that you’re willing to tackle the same tasks you ask of them.

6. Promote a social workplace.

Offices shouldn’t feel stuffy and too serious. As much as possible, depending on the industry, leaders should promote a social workplace where workers are free to talk, share their opinions and communicate freely.

Rita Ortega Abueg, head of operations at Dare Design, advised employers to take the pulse of their company culture and take action if they find it lacking. 

“Start with taking a look around your office — does it look like the sort of place people would want to hang out with their friends? If not, then you need to consider changing that,” Abueg advised. “It might surprise you to know people with work friends are seven times as likely to be engaged in their work. They also tend to be more loyal, motivated and have higher overall performance.”

Spending time with employees outside the workplace can also be beneficial. Knowing your employees and building friendships can help boost morale and increase loyalty. “It can be empowering to know that with some reframing, you can help create a better workplace for yourself and those around you,” Abueg added.

However, there are some caveats to promoting a social workspace. You must know where to draw the line and always maintain a sense of authority and the ability to make objective decisions.

You should also be careful to avoid workplace nepotism and the appearance of favoring some employees over others. It’s best to socialize with employees as a group instead of one-on-one. If everyone is invited, no one feels left out.

7. Pay attention to the physical work environment.

Your office environment affects productivity, so consider improving and optimizing your workspace. For example, adding plants can help create a serene environment and may even help reduce mental fatigue and improve focus and concentration.

If a more upbeat environment suits your team, consider incorporating music into your workspace. Arora avoids the traditional corporate atmosphere by keeping things lively with continuous music. “I personally curate a playlist filled with great tracks, and employees are encouraged to suggest songs,” Arora shared. “We feature a variety of genres, from country and rock to pop and jazz. This helps uplift the atmosphere and energize the workspace. When the mood is positive and employees feel motivated, productivity improves and people take pride in their work.”

Abueg agrees that an investment in the physical work environment is a win-win. “Investing in employees and the aesthetics of the workplace to create a healthy, inclusive working environment ultimately benefits both staff and the business as a whole — a happier workforce that feels valued is a more engaged and productive workforce,” Abueg explained.

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Written by: Julie Thompson, Senior Writer
With nearly two decades of experience under her belt, Julie Thompson is a seasoned B2B professional dedicated to enhancing business performance through strategic sales, marketing and operational initiatives. Her extensive portfolio boasts achievements in crafting brand standards, devising innovative marketing strategies, driving successful email campaigns and orchestrating impactful media outreach. At business.com, Thompson covers branding, marketing, e-commerce and more. Thompson's expertise extends to Salesforce administration, database management and lead generation, reflecting her versatile skill set and hands-on approach to business enhancement. Through easily digestible guides, she demystifies complex topics such as SaaS technology, finance trends, HR practices and effective marketing and branding strategies. Moreover, Thompson's commitment to fostering global entrepreneurship is evident through her contributions to Kiva, an organization dedicated to supporting small businesses in underserved communities worldwide.
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