“The customer is always right.”

This is the mantra of many businesses and reflects the prevalent focus on profit and the customers who provide that profit. But what about the employees? Employees are also an integral part of a company’s success, yet they are often considered as an afterthought; employees are an expense and not an income, and they are replaceable.

However, if business owners and managers can break away from the traditional focus on customers and place at least as much focus on employees, they will see that profit can increase considerably. This article will examine the benefits of having happy employees.

First of all, a happy employee is not likely to quit. Anyone who has worked in the service industry knows that the turnover rate for employees can be phenomenally high. Even positions outside of the service industry – positions that require significant training and experience and pay accordingly – can suffer from a lack of employee loyalty. This is a major problem for companies that have to continuously go through expensive hiring and training processes. Dissatisfied employees, who quit at the first sign of a better offer, are a direct drain on a company’s profits.

High turnover rates can also have a more indirect affect on profits. New employees, no matter how good the company’s training program is, are simply not as experienced as veteran employees. A new hire will not know every detail of a company’s history and policy. He will not know the location of every item the company carries by heart. He will not know the names and preferences of regular customers. Basically, he will not know much at all. Customers notice this, and while they may be forgiving of the occasional unknowledgeable employee, they will not be so tolerant when the staff is consistently comprised of an ever-changing, always green group of unfamiliar faces. At the same time, long term employees, who both recognize and are recognized by the customers, can make a business seem more welcoming. Customer will remain loyal when they know that they will always receive the quality, friendly service they deserve.

But even an experienced employee is not always going to be helpful. Unhappy employees simply do not work very hard. They resent their employers and do not feel motivated to earn those employers a profit. Unhappy employees, by definition, do not enjoy their jobs. Therefore, during the course of the average day, they will do anything but their actually duties. They will come in late, leave early, take long breaks, chat with coworkers, and procrastinate doing any work that they actually intend to eventually carry out. And who can blame them? Why would anyone want to work hard doing a job he hates for a company he cannot stand, especially when that company does not even care about its employees? However, an employee who knows that his job is vital and appreciated will take pride in his work. He will not waste company hours goofing off (or at least not so many) and he will complete his tasks with care. After all, a content employee knows he must do a good job lest he be fired, a concern that often does not even enter the mind of a displeased employee.

Equally important, the happiness of an employee is apparent to everyone, especially customers. Have you ever gone into a store only to be confronted with an angry clerk? Have you ever called up a company, perhaps ready to fork over a considerable amount of money, only to be put off by a less than helpful employee who obviously had no interest in answering your questions or obtaining your business? Unhappy employees repel customers; happy employees are a walking advertisement for their employer.

Finally, good, happy employees attract better, happier employees. When a hard worker with great experience is looking for a new job (probably after quitting his last job because he was unhappy there), he will take into account how the prospective employer treats its employees? He will ask: “Do the employees seem satisfied here? Will I be content here?” If the answer is no, then he will look elsewhere, and some other company will profit from his skills.

By now, you should be convinced that happy employees are a crucial part of a business’s success. Only one question remains: how does a business owner or manager ensure that his employees are happy?

With very few exceptions, people work to make a living. Therefore, an employee must be receiving an acceptable salary in order to be happy. An underpaid employee who struggles to make a living will always be on the look out for a better paying job. On the other hand, a well-paid employee will be more likely to work hard, motivated as much by the knowledge that he is properly compensated as by the fear that he could lose that pay check at any time.

The importance of exceptional benefits should not be underestimated. Excellent healthcare, including vision, dental, and life insurance, is a strong appeal for many workers. Some employees, especially those with children, are likely to accept and retain a position purely for the medical insurance it offers.

Once an employee’s loyalty is secured, a company should offer profit sharing or other performance-based incentives. Money is a huge motivator, and an employee is much more likely to work hard for his own profit than for the profit of a company. After all, why should an employee put forth an extra effort if his pay check will not reflect it?

However, money is not everything, at least not to everyone. Employees have a life outside of work. Usually, they are working to support that other life. Therefore, a job is only worthwhile if it allows time for other activities. Employers should offer flexible schedules and be understanding when an employee needs to either increase or decrease his hours or change the days and times he works. An employer should try to accommodate such requests whenever possible. Otherwise, the employee might find another company that can. Generous vacation, sick, and personal days, which help an employee balance his work life and real life, can go a long way, too.

Finally, no matter how great the pay and hours are, an employee still has to spend a lot of time working, so that time needs to be as pleasant and rewarding as possible. Employees want to feel important and appreciated. Of course, profit sharing, a good salary, and flexible hours will help towards this goal. But it is also necessary to treat employees with respect, to take talk to them like people and not bark sometimes impossible orders at them. Also, the affect of a company’s dress code should not be underestimated. Employees are happiest when they are wearing clothing in which they feel comfortable. Dress codes should not be stricter that they need to be, and uniforms should not be demeaning. People do quit jobs over silly hats.

Of course, none of this means that a business owner or manager should let his employees walk all over him. There is no point in catering to a useless employee or tolerating behavior that is detrimental to a company. And the employee does need to realize that he is still the employee and must listen to his boss.

The key here is balance. A business owner or manager needs to treat his employees with respect and provide them with a good working environment. He should let them know that they are an essential part of the company and give them incentives to perform well. These are not just suggestions on how to be a better person (although doing such things will certainly increase other people’s estimation of one’s character); they are ways to increase a company’s profits.