Is it time to make happiness a KPI?

It is no secret that happy people are more productive and more committed to their roles. This is not anecdotal it is supported by Positive Psychology studies. We all nod sagely when reading the reports and when HR departments present the statistics urging support of colleagues’ mental health.  

However, when reviewing performance how many leaders truly measure mental well-being and incorporate this into their assessments? How many take this as the starting point and consider all the factors that contribute to it? 

Too often the focus is on the result and not all the elements that contribute to delivering the performance.

In 2022 AXA undertook a global study that revealed nearly 50% of UK respondents struggled with emotional well-being. When asked about it, 21% of UK respondents chose the “struggling” category, with a further 26% opting for “languishing”. This equates to almost half of the UK working age population being in a poor state of mental health, leading to high levels of stress and increased risk of burnout. All of which has significant consequences for the individual and the economy.

The study across 16 countries in Europe, Asia and the Americas reported the UK languishing behind the rest.

New data from AXA UK and the Centre for Business and Economic Research, published as recently as March 2023, suggests that this leads to circa 23.3 million working days lost each year and equates to an annual loss of £28bn to the economy.

All indications are that this situation is going to get worse as the UK’s cost-of-living crisis continues, the wider consequences of the pandemic become more apparent, and global events remain more negative than positive.

Whilst employers and leaders have no control over these external events, they can recognise the impact they have on employees and how they perform in their roles.

The good news is that employers have been increasingly recognising the link between good mental health and well-being with increased performance and productivity. How it helps people to make better, more informed, positive decisions and engage positively with cultural change. Many organisations have improved the pastoral training of leaders and offer confidential support and counselling services. All excellent steps forward.

I wonder however, have we now reached the point where happiness, mental well-being, whatever term you choose, should be formalised as a KPI?

It will require a bold leader to do this. 

As coaches we can support leaders to be resilient through this period in order to strengthen their own mental health and well-being. This in turn will enable them to be more supportive and empathetic of colleagues, working with them to create performance outcomes which are underpinned by their own happiness and well-being. 

It’s a win/win. Ultimately both the employee and the business benefits.