How Much Salary Is Enough For The Growth Of Happiness Of Employees 

How Much Salary Is Enough For The Growth Of Happiness Of Employees 

March 26, 2024

Every 1 happiness point increase on a scale of 0-10 increases employee productivity by 12%.

How Much Salary Is Enough For The Growth Of Happiness Of Employees 

How important is employee happiness? 

Talentnet previously implemented an internal coaching program where employees could seek guidance from organizational leaders on both professional and personal challenges. During one of these sessions, I was deeply impacted by a particular “mentee”, known for their commitment to continuous learning and contributions. At the end of the session, when I expressed gratitude for the mentee’s contributions to the company, the mentee humbly responded: “Compensation and benefits provide a sense of responsibility, but the happiness derived from work that truly motivates me to give my best every day.” 

These words resonated with my fundamental mission in establishing a human resource solutions company: to cultivate strong interpersonal connections within businesses, ensuring that organizational success is not solely measured by financial growth, but also by the happiness and fulfillment of employees. 

It’s understandable that during economic downturns, leaders prioritize maintaining revenue and organizational stability. Employee happiness can, unfortunately, fall on the wayside. However, I believe leaders should be persistent in fostering happiness for their workforce because this is the factor that motivates them to work more effectively. 

Employee policies do not consistently lead to happiness. However, I contemplate the employee’s statement, “happiness comes from going to work,” suggesting that leaders should strive to cultivate a positive work experience for their employees. 

Ms. Tieu Yen Trinh - Founder & CEO of Talentnet Corporation
Ms. Tieu Yen Trinh – Founder & CEO of Talentnet Corporation

Happy growth through a happy commute 

In my view, achieving holistic happiness requires three essential elements: EXACT, ENOUGH, and EXTENSIVE. For instance, consider a baker who seeks peace of mind in his work. Firstly, he requires a salary that adequately covers his living expenses – this represents the EXACT aspect. Additionally, he needs the opportunities for skill enhancement and personal growth, to become a proficient baker or establish his own bakery – this signifies ENOUGH. Ultimately, the baker must derive meaning from his work, both in terms of profitability and contributing to others – this embodies the EXTENSIVE component.  

These three factors align closely with the “Total Well-being” framework proposed by the “Academy to Innovate HR” (AIHR), encompassing “physical health,” “financial health,” “mental health,” “growth opportunities,” “stamina and recovery,” and “social health.”  

It is important for businesses to recognize that each employee has unique needs across these dimensions. While early in their careers, employees may prioritize factors like competitive salaries and growth prospects, their focus may shift towards aspects that provide a sense of purpose, such as the impact and significance of their work, as they progress. Therefore, personalization is crucial for organizations to foster holistic happiness among their workforce. 

The happiness coming from going to work motivates employees to contribute more every day
The happiness coming from going to work motivates employees to contribute more every day

Furthermore, given the prevalent concern among workers regarding the potential displacement by AI and machines, businesses must proactively address this by integrating technology-related skills into their “Reskilling” and “Upskilling” initiatives. This strategic move not only enhances the “growth opportunities” available to employees but also extends its benefits to aspects like “mental health” and “resilience,” reassuring employees that they can adapt to future market demands.  

It is essential to recognize that fostering overall employee happiness is not solely a business’ responsibility. I emphasize the need for a collaborative relationship where employees actively identify their aspirations, strengths, skills for adaptation, and values they wish to contribute to society. This collaborative approach involves both parties agreeing on an action plan. 

I encourage leaders to approach the new year with determination while prioritizing their mental well-being. I believe that when leaders are happy, employees will be happy, leading to business growth and ultimately contributing to a happier community and country. 

(The article is from the perspective of Ms. Tieu Yen TrinhI General Director of Talentnet Corporation)

Top 3 questions of “Happiness Card” I would like to introduce business leaders to review the effectiveness of happiness management for their organizations before new year:
1. EXACT: Are you happy with most of your management decisions?
2. ENOUGH: What specifically are the decisions that make you feel happy?
3. EXTENSIVE: How can management work bring a new, better sense of happiness?

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