How to create a happier workforce
Workplace satisfaction is an important factor of an organisation’s success that is often overlooked. Many companies focus on output and measure KPIs rather than looking at the bigger picture.
Happy employees are less likely to resign, saving on recruitment costs. They’re also more likely to support each other, work productively and create a healthy workplace culture. A good workplace culture is more likely to attract – and retain – good talent.
SEEK’s Workplace Happiness Index 2025, released late last year, found that 65% of New Zealanders are happy at work. However, that leaves almost 12% (or 1 in 7) either somewhat or extremely unhappy.
It’s worthwhile for leaders to take a closer look at employee happiness and explore ways they can improve happiness in their teams.
We spoke to Transitioning Well Co-Director and Organisational Psychologist, Justine Alter, to find out what managers and employers can do.
What drives employee happiness at work?
SEEK’s research found that the number one driver of happiness at work is purpose. Having a sense of purpose at work means feeling what you’re doing is making a positive impact in some way, whether it’s contributing to an organisational goal or fulfilling a personal objective.
Justine explains that it’s important for organisations to take the time to unpack what drives their employees.
“Not every role is going to tick that purpose box for employees,” Justine acknowledges. “However, it’s important to take the time to understand what brings meaning to your employees to help them find that purpose within their role.”
It’s important to stress that this doesn’t mean that if that purpose or feeling of meaning isn’t there that the person needs a different role.
“It could just be about finding ways to create that meaning in their every day work,” Justine adds. “You could consider things such as getting your employee involved in projects outside of their role, or encouraging them to join a social committee, or green initiatives. There are so many opportunities outside of the day-to-day that can help bring some of that purpose into work – it doesn’t have to be about the day-to-day."
Beyond feeling aligned to a purpose in their role, Justine believes that outside factors also affect happiness at work.
“Workplace unhappiness can stem from the complex intersection of personal and professional challenges,” she says. “Right now, we're seeing people grappling with significant financial uncertainty, inflationary pressures, and low wage growth – all while trying to adapt to constantly changing work environments.”
“The SEEK data shows us that different generations are experiencing workplace happiness differently,” she continues. “Our younger workers (Gen Z) report only 58% happiness levels compared to 69% among Gen X."
This differentiation in data is important to keep in mind when approaching ways to improve employee happiness.”
The impact of employee unhappiness in the workplace
SEEK research shows a correlation between happiness and the willingness to go “above and beyond”. It also shows an inverse link between happiness and job seeking. Justine delves further into this, explaining how easy it is for something that starts as an “individual experience” to quickly spread and affect an organisation’s “entire ecosystem”.
“We often see when one person is struggling, it can impact their immediate team's dynamics,” she explains.
From there Justine says, it can seep into workplace culture.
She expands on the data: “When employees are unhappy, it affects their ability to connect with colleagues, engage in their work, and contribute to the organisational culture. Creating a psychologically safe environment where people can bring their best self to work and feel supported through all of life's transitions is so important.”
SEEK research reinforces this, showing that colleagues and workplace culture are both important happiness drivers for some generations.
Understanding sources of stress and unhappiness
SEEK’s Happiness Index paints a broad picture of the state of the New Zealand workforce. Justine suggests that it should be used by leaders to drive important conversations that help determine the reasons employees are unhappy at work.
“The real insights come from understanding individual stories and experiences,” she says. “There is no one-size-fits-all approach to employee wellbeing and happiness. We need to recognise that different employees face different challenges at different stages of life, and work with them at that level.”
To do that, Justine says it’s all about listening.
“Leaders need to create safe spaces for honest conversations and really listen to what people are saying,” she says. “When building these spaces for open communication, do so across multiple channels. That way, employees can share their experiences and concerns in the format where they feel most comfortable.”
Supporting employees to improve workplace happiness
When measuring the top drivers of happiness at work, SEEK research showed that some of the traditional motivators – such as salary – ranked quite low.
Looking at three of the top happiness drivers, Justine shares how leaders can influence positive change:
Purpose at work (ranked #1)
“Purpose tops the list because employees need to feel their work matters and contributes to something meaningful.”
Organisations can address this by:
Clearly articulating their mission
Ensuring team goals align with broader organisational objectives
Regularly communicating the impact of people's work
Ensuring regular check-ins with staff are standard – ensuring people aren’t relying on the ‘boss lottery’ for support
“This isn't just about having values on a wall – it's about making those values live in daily decisions and actions.”
Day-to-day responsibilities (ranked #2)
“If we unpack what causes unhappiness when it comes to day-to-day responsibilities, it’s helpful to consider it through a psychosocial risk management lens.”
With that in mind, organisations can start to address this by:
Taking the time to check in with your employee, and working together to ensure:
There’s good role clarity – it’s important that people understand what is expected of them.
Job demands are addressed – is your employee overworked or underworked? Are they exposed to aggression in the workplace? Are there high physical demands of them? By addressing job demands you can help ensure the safety of your staff.
They feel well supported – do they feel heard? Is it clear to them who to go to for support? Do they know how to get the information they need to do their job?
“It’s important to consult with your workers,” Justine says. “Making decisions without them or not taking the time to understand the perceived risks in their role, will only lead to further discontent.
Your manager (ranked #3)
“Management capability is an area many organisations need to invest in.”
Developing strong management capabilities means:
Teaching managers how to have meaningful conversations about workload and stress
Helping managers understand how to support different team members through various life and career stages
Equipping managers with the emotional intelligence to lead effectively.
“In practice, this looks like training in having difficult conversations, providing feedback, and recognising early signs of stress or disengagement in their teams.”
Putting it all together
“The key is understanding these elements are interconnected. Strong management supports positive culture, which in turn helps manage stress levels, allowing people to focus on their purpose and responsibilities more effectively.”
Designing a happy, supportive workplace
Understanding whether your employees are happy and what to do if they’re not takes time; but it’s time well spent. Building a happy and supportive workplace, Justine explains, will result in productive and healthy workers who deliver.
“People need purpose, support, and understanding to truly thrive at work,” she says.
“The key is creating conscious workplaces that support people with empathy, understanding, and practical strategies for success.”
Access the complete Workplace Happiness Index Report here.
Source: Research conducted for SEEK by Nature, between July and September 2025 via an online survey. Responses were gathered from over 1,000 working age New Zealanders.