10 top tips to create a happy workplace & boost employee productivity in 2025

A happy office is one where employees are engaged in their tasks and enjoy working with colleagues. This is often a result of meaningful work and recognition for their efforts. In this guide, you will learn how to create a happy office and common mistakes to avoid.

Happy employees have a positive attitude about their work and company. They are proactive and ready to take on new challenges and projects. A recent research from Oxford University on the impact of a happy workplace environment linked happy workers with a 13% increase in productivity. The other benefits include improved creativity and low turnover. In another study by Cisco, 82% of surveyed employees linked their workplace happiness to flexible work schedules.

Below are actionable steps you can take to create a happy office and boost the engagement levels of your employees. All these steps are important, so find a way to customise and make them work for your team.

Recognise and reward employees

According to a Gallup survey, only 3 in 10 employees strongly agreed that in the last 7 days, they received recognition or praise for doing good work. Employees who feel motivated are often more productive. You can make this a reality in the workplace by implementing structured recognition programmes and providing real-time praise in meetings.

Encourage open communication

A workplace flourishes when there is a clear communication channel. Forbes highlights that teams who feel that their voices are heard are 4.6 times more likely to give their best at work. To make open communication a key part of your employee engagement techniques, set up open-door policies and encourage regular team check-ins.

Organise bonding events

A Gallup research, as reported by Harvard Business Review (HBR), found that close friendships at work boost employee satisfaction by 50 per cent. Plan team outings and social events such as team lunches and informal coffee chats to foster camaraderie among employees and build a happy workplace environment.

Prioritise employee wellbeing

Companies that prioritise workplace wellbeing strategies and health initiatives can reduce absenteeism due to sick leave by 27% and healthcare costs by 26%. Provide mental health resources such as counselling and physical activity initiatives like Yoga to boost employee wellbeing.

Provide career growth opportunities

A survey of over 2,000 employees found that those with professional development opportunities were 15% more engaged than their peers. This calls for upskilling and reskilling employees through skill-based workshops and online courses. You should also set up clear career progression paths and mentorship programs.

Promote work-life balance

Work-life balance is one of the key metrics that determine employee happiness in the workplace. Companies with flexible work options reduce their turnover by 25%. To champion work-life balance initiatives, start with hybrid office (1) and remote work arrangements. Another tip is encouraging employees to take full vacation days and mental health breaks.

Create a comfortable work environment

Open floor plans and flexible office spaces (2) have been shown to boost productivity by up to 20%. Some tips you can borrow to create a positive work atmosphere include using ergonomic furniture and proper lighting. Add natural elements like plants and use soundproofing to reduce noise distractions.

Provide healthy office snacks

A healthy diet is one of the overlooked aspects that can greatly boost employee happiness in the workplace. Food rich in essential nutrients enhances physical vitality and supports clear thinking. Stock the office with healthy snacks like fruits and nuts and provide hydration stations with filtered water and herbal teas.

Encourage personalisation of workspaces

In a push to create personalised and sustainable office designs (3), most employers allow their teams to customise their desks with personal items or décor. This is an important tip to implement as it has been shown to make employees 25% happier and 32% more productive.

Invest in technology for a seamless work experience

In today’s workplace, technology is a key factor that distinguishes those companies that are succeeding and those struggling to catch up. Provide reliable digital tools, especially those that are AI-powered, to help automate workflows. It is worth noting that corporate culture transformation starts from the top down. So, as you invest in tools, also hire tech-savvy leaders and upskill employees.

In this article:

• How to design a hybrid office that works for everyone
• What does a flexible office look like?
• 9 smart ways to build sustainable office design