Despite the importance of work for wellbeing, working turns out to be one of the least enjoyable activities we engage in on an hour-to-hour basis. To evaluate the effects of work on wellbeing researchers often rely on experience sampling methods.
Social aspects of work (such as positive working relationships (particularly with managers), work/life balance, interesting work, and purpose) often prove to be more important determinants of wellbeing than income. The relationship between working hours and wellbeing also tends to be mediated by the extent that workers are able to choose the hours they work.
Workplace wellbeing affects individual productivity and company performance. To evaluate these dynamics and make causal inferences, researchers employ a variety of analytical strategies. These include fixed-effects regressions, laboratory experiments, natural experiments, field experiments, and quasi-experiments. Each approach has its own unique advantages and disadvantages. But, taken together, the findings of these endeavours generally suggest that happiness improves performance.
There are a number of possible pathways through which wellbeing can impact productivity. These include better health and more motivation, as well as positive relationships, lower absenteeism, lower turnover, and greater ability to attract talent at the firm level.
