8 Benefits Of Positive Psychology In The Workplace

July 19, 2022

8 Benefits Of Positive Psychology In The Workplace

Google is one of the most successful and internationally recognized companies in the world. Aside from creating the best search engine on the world wide web to date, the company deserves high praise for its groundbreaking vision and dedication to providing a good working environment for its employees. The current trends of open-concept offices and work-life balance can be traced back to Google and other similar start-ups in Silicon Valley. As such, it should be no surprise that Fortune Magazine, alongside other prestigious sources, has consistently ranked Google as one of the best-if not the best-companies to work for.

What truly makes Google stand out from other companies is its application of positive psychology in the workplace. While positive psychology can seem like a vague term, causing people to have many different interpretations of its meaning, the most commonly accepted explanation is that it is a scientific approach to understanding what makes us happy in life. From human thoughts and feelings to behaviour and attitudes, positive psychology emphasises building the good in life and creating enjoyable experiences. With regard to the workplace, this indicates that members should be encouraged to adopt a growth mindset and forge healthy relationships with each other to form a positive workplace network and environment.

Top 8 Benefits of implementing Positive Psychology in the Workplace

Top 8 Benefits of implementing Positive Psychology in the Workplace

Positive psychology has been found to benefit not only employees but also companies that are striving to improve their bottom line. Based on multiple findings from credible sources, such as magazines, authors, and analytical firms, we have compiled the top benefits of promoting positive psychology in the workplace.

1. Increase in Profitability

According to Gallup, Inc., positive psychology can help companies raise their profitability by 33%. This is because positive psychology seeks to make the workplace more collaborative, communicative, and unified all at the same time, which allows employees to produce high-quality work as suggestions are shared, and employees feel comfortable lending a helping hand or receiving constructive feedback whenever appropriate. What’s more, as positive psychology sees that employees’ strengths and interests are identified and nurtured by the company, employees are more likely to be motivated to come up with more efficient solutions and innovative ideas. All these enable companies to boost their revenue and grow in the long run.

2. Increase in Productivity

Increase In Productivity

Happiness means higher productivity. Even though this correlation is evident and easy to understand, there are statistics to back it up. Based on research conducted by the University of Warwick and published in the Journal of Labour Economics, participants who experienced happiness were 12% more productive compared to those who were unhappy or underwent fewer positive emotions. If we take a look at Google or other companies that follow a positive psychology approach, we can now see why these companies take the time and effort to develop team-building opportunities and introduce reward systems. These initiatives do pay off as they make employees feel more grateful, in turn increasing their happiness.

When employees are happy, they tend to use their time in the workplace more efficiently. Whether it is to interact with other workers more positively or have the energy to churn out quality work throughout the day, happiness and satisfaction inspire employees to set higher goals for themselves and be more confident in coming out of their comfort zones. Furthermore, positive emotions can also instil a sense of belonging in employees, which contributes to the overall culture of inclusiveness and acceptance in the organization.

3. Enhanced Innovation

Another benefit of happiness and, to an extent, positive psychology in the workplace is that our creative thinking abilities will be enhanced. Going all the way back to 2006, researchers from the National Academy of Sciences in the United States found that when we are in a good mood, our visual field and imagination expand—spurring our capacity to think outside the box. If the company intends to be forward-looking and embrace innovation, implementing positive psychology in the workplace should absolutely not be disregarded.

Since positive psychology helps establish an intellectually stimulating environment and work culture in which employees are granted greater autonomy and freedom to express their innovative thinking, employees will be more solution-oriented as a whole. According to the magazine Harvard Business Review, organizations with an inspiring and supportive work environment see a 300% increase in their innovation efforts. As such, business owners and managers should avoid giving harsh evaluations of new ideas. Instead, take them into consideration as they may just be the solution to growing the company.

4. Reduction in Absenteeism

There is probably no need to say that some employees are not truly unwell when they do apply for sick leave. While many reasons for them to do so are out of the company’s control, such as personal commitments and family-related issues, most of the time it is due to the workplace not providing a sufficiently motivating and positive environment. Let’s say that the workplace is not cohesive and members are unable to carry out effective communication. It makes sense why employees no longer feel welcomed or appreciated in the company, in turn causing their engagement to decline.

By enforcing positive psychology, employees will not only feel more reassured about coming back to the office on a daily basis but also hold the belief that work can be fun and not monotonous. As employees have a more positive attitude toward working, their work performance will improve as well. Findings by Forbes magazine indicate that positive psychology practices can reduce absenteeism and sick leave by roughly 66%. It is crucial to note that each employee has a role to play in ensuring that the company operates smoothly. If many employees constantly request sick leave or are absent from work, other employees may suffer from burnout as they take on more work, lowering morale.

5. Reduction in Burnout Rate

Reduction in Burnout Rate

Some employees may blame themselves for their lack of productivity and efficiency when they are feeling overworked. This assumption could not be more untrue, as employee burnout is and will always be the fault of the company. When employees are swamped with heavy workloads and unable to achieve a good work-life balance, this implies that the company suffers from major organizational mismanagement and a lack of direction. In addition, it shows that employees have to deal with unrealistic job demands, lack of support from top management, and emotional and physical exhaustion on a frequent basis.

Positive psychology encourages employees to work together and help each other out during tough times. Therefore, employees are less likely to suffer from burnout as they are given the freedom to prioritise self-care, work with a purpose, and have the assurance to request assistance whenever required. This is evident from findings by Harvard Business Review, which discovered that positive psychology leads to a 125% reduction in burnout rate.

6. Lower Turnover Rate

Arguably the worst crisis that companies face is a high turnover rate. When many employees are only remaining in the company for short periods of time and are leaving in groups, this sends a clear signal that the company is doing something wrong, and employees are highly unsatisfied. In such cases, companies should immediately look towards improving the workplace culture and develop an effective retention strategy in order to retain existing employees. High employee turnover rates can be extremely disastrous for a business, resulting in severe consequences such as poor reputation in the corporate world; loss of valuable knowledge and skills; loss of morale; and many more. In other words, the turnover rate can either make or break a company.

To avoid such scenarios, companies should attempt to make employees feel attached to the business. Of course, this can only be achieved if the workplace offers an environment where employees are valued for their contributions and feel that there is something to look forward to throughout their career journey. This is where positive psychology comes in by allowing employees to strengthen their talents and have opportunities to pursue other career-related interests. This gives off an impression that the company understands each employee’s personal goals, ensuring their loyalty at the end of the day.

7. Increase in Sales

Considering that positive psychology helps boost productivity, motivation, and loyalty among employees, companies can expect their sales revenue to increase as employees have the drive and purpose to achieve business goals and hit targets. According to Gallup, Inc., it does not matter what industry the business is in or the company’s size. As long as a business puts in place a positive workplace environment and enjoys the benefits listed above, its bottom line will improve. Shawn Achor, the American author who published the New York Times best-selling book “The Happiness Advantage and Big Potential”, has also mentioned that companies have discovered their sales volume go up by 37% after practising positive psychology.

8. Lesser Safety Incidents

Positive psychology is about more than just creating a meaningful and fulfilling work-life balance; it is also about granting employees the right to work in a safe and healthy environment. This is accomplished by establishing positive organisational science to create better safety-related interactions among employees. Unfortunately, to this day, there are some companies that fail to protect their workers from health risks and safety hazards. This can be attributed to a false sense of complacency and misjudgement by the company and its managers, especially in a workplace where it may seem that employees are not in direct harm’s way with any potential danger, such as simply sitting at their desk all day. However, regardless of the environment the employees are in, health and safety measures should not be overlooked and must be complied with at all levels. Based on findings from Babcock Marine Clyde, positive psychology has the capability to lower safety incidents in the workplace by 50%.



Gone are the days when employees had limited communication and interaction with each other, and the idea of making work fun is out of the question. Now, younger working professionals are setting their eyes on open-concept and less-restrictive workplace environments where they know that the company prioritises their well-being. For those who are planning or are current HR professionals, business owners, or executives with decision-making power in the company, you should consider implementing positive psychology in order to build a happy workplace.

At Aventis Graduate School, we can help you to apply positive psychology to your workplace through our Graduate Diploma in Applied Positive Psychology and Mindfulness. This program will equip you with the necessary knowledge and practical skills to cultivate happiness in various industries, from educational settings to vocational and counselling sectors.

Aventis Graduate School also offers a Psychology Master’s Degree, among a wide range of Master Degree courses in Singapore. All our courses and programs are delivered by internationally renowned universities in the United States and the United Kingdom and designed to accommodate the busy schedules of working professionals. To find out more about our programmes, you can visit our website here.

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