Living and working today comes with many challenges, from the rising cost of living to global crises and an increasingly disconnected, ever-changing digital world. It’s no surprise that it’s affecting our population’s wellbeing. The 2025 World Happiness Report released today showed the UK plummeting to 23rd place, despite being the sixth richest country in the world.
The report showed, through various surveys and experiments, that social connections, supportive workplaces, and acts of kindness are boosts to wellbeing. Shared experiences, strong networks, and prosocial behaviour improve happiness, while rising isolation – especially among young people – harms it. With work consuming an average of 84,000 hours of our lives, work life has a big role to play. Make no mistake, in 2025, happiness should be a central part of your business strategy. Happier employees are 31% more productive, 3 times more creative and far less likely to experience burnout and absenteeism. This increase in productivity naturally translates to better profits, with companies that have the most engaged employees seeing 23% higher profits than those with less engaged teams.
Happiness: a leadership imperative
In research by McKinsey 56% of American workers claim that their boss is mildly or highly toxic, and a massive 75% say that their “boss is the most stressful part of their day.”
Making people happy might not seem like an obvious leadership KPI, but there’s a methodology to building a motivated, positive workforce from the top down.
A positive workplace starts with empathetic leadership. Leaders who actively listen, give employees a voice, and foster open conversations about wellbeing create a sense of psychological safety and trust. The decisions, behaviours, and values of your executive team don’t just set the tone; they directly impact how employees feel, from their sense of belonging to their motivation to achieve, learn from mistakes and challenge themselves.
Cultivating joy: ways to build a happy culture
For many, work is more than just a job. A positive workplace can offer purpose, community and fulfilment, but this is only possible when the culture is purposefully crafted to support its people. Here are some key ways to nurture a culture where employees thrive and feel happy.
Promote work/life balance – People today value their freedom more than ever, with professionals in hybrid working environments tending to view their organisation more positively. But what about deskless workers, who don’t have the option to work from home? Boston Consulting Group advocates for a “frontline-first” culture, listening and acting on workers’ needs, which could include offering flexible schedules to improve work/life balance.
Invest in development
Supporting employees’ growth and learning shows a commitment to their future. An article in Business Insider highlights companies which are investing in reskilling, helping employees adapt to new technologies and build resilience for the future.
Make space for connection
Employees flourish when they have genuine workplace relationships, and these can be built both on and offline. Whether through mentorship programmes, team collaboration, or informal social opportunities, organisations that encourage connection boost engagement and workplace belonging.
Be honest, embrace feedback
Gallup’s 2021 research found that employees who receive regular feedback are 3.6 times more likely to be engaged, boosting both performance and job satisfaction. Establishing a structured feedback framework normalises open, honest communication, creating a more engaged and fulfilled workforce.
Double down on DEIB
DEIB programmes are vital for fostering engagement and belonging. With swathes of companies currently scaling back their DEIB programmes, in response to Trump’s executive policy changes, we encourage businesses not to be hasty and to recognise their immense value in strengthening both employee and business health.
Recognition matters
Feeling valued for hard work, positive behaviour, and commitment to company culture is a key driver of happiness across all generations in the workforce.
Measuring happiness
Treat employee happiness and engagement as key performance indicators. Track this through regular surveys, retention and absenteeism rates, structured feedback sessions, and Employee Net Promoter Scores (eNPS).
We’re here to help
In 2025, prioritising happiness at work isn’t just an option – it’s the key to creating a thriving, resilient business. At NKD, we specialise in cultural transformation. If you’re ready to cultivate a workplace culture where employees are engaged, happy, and able to reach their full potential, get in touch.