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Happiness and Its Effect on Your Business

Updated: Jul 12

As the leader of your business, you create the blueprint of its culture by the behavior you exhibit in front of your employees, customers, vendors and stakeholders. Your relative happiness shapes your behavior.

The primary driver of happiness is the basic human desire to seek pleasure and avoid pain. So, happiness can be defined as the fulfillment of our desires that bring us pleasure, and unhappiness comes from our unfulfilled desires.

Our pleasure-seeking, pain-avoiding heart influences all the choices we make in life, such as our relationships, our goals, how we work with others, how we judge ourselves and others, our compassion and empathy, and how we determine whether we are successful or not.

We tend to lump all the experiences that give us pleasure into that single word: “happiness.” Most people would describe eating a pizza, gaining a new customer at work or getting married as happy occasions. The same word, “happy,” describes a range of experiences from superficial to deeply profound.

Finding True Happiness by Father Robert Spitzer details four levels of happiness. The first level of happiness  is derived from physical pleasures and material possessions. It is short-lived and intense, like having a thick steak, a glass of red wine and a good cigar, to quote G.K. Chesterton. However, suppose a person allows level one happiness to become an end to itself, such as having steak night after night. In that case, it can ultimately lead to destructive behaviors while trying to achieve the same intense happiness as the first streak.

Likewise, a level one work culture typically emphasizes short-term rewards such as bonuses, perks and material incentives. While these can motivate employees in the short term, they create a transactional mindset driven by what employees can get from the company. This can result in high turnover rates and low loyalty, as employees may move on to other opportunities offering better perks or even just 25 cents more per hour from the company down the road.

The second level of happiness is found in the esteem and acclaim given to you by your peers and team members. The downside is that it can lead to jealousy or envy of others’ accomplishments or a fear of failure when you compare yourself to others’ lives.

A level two work culture emphasizes personal achievement, promotions, titles and competitiveness among teammates. This can drive high performance but also foster an unhealthy level of competition, unneeded stress and, at worst, a cutthroat and toxic environment. Employees in this environment might feel pressured to outperform their peers, leading to burnout, a lack of collaboration and esprit de corps, and perhaps even a breakdown in ethical behavior to stay on top of quotas.

The third level of happiness is derived from contributing to others’ success and making a positive difference in the world. We are hard-wired to make a difference to somebody outside of ourselves.

When a business embraces a level three culture, amazing things happen. The focus changes from the individual to the well-being and development of the team. The level three culture encourages employees to find meaning in their work by contributing to their colleagues’ success and the common good.

Lastly, level four happiness is quite rare in the business world. This is the highest level of happiness, achieved through seeking and experiencing ultimate truth, love, goodness, beauty, and being. This level is associated with spiritual fulfillment and a connection with the transcendent, expressed for Catholic business leaders as a contemplative relationship with God.

A business culture that strives for level four happiness encourages employees to seek a more profound sense of meaning and purpose through their work, which is aligned with the company’s mission. Companies operating at this level have a solid ethical foundation based on Catholic social teaching. This can lead to profound job satisfaction, a strong sense of community and long-term organizational success.

Level four businesses prioritize creating value for all stakeholders, including employees, customers, suppliers and the community. Level four leaders lead with integrity, empathy and authenticity, empowering employees and inspiring them to reach their full potential.

Each of us pursues the four levels of happiness at any given time. Level one desires, such as a great steak, are acceptable – as is achievement in Level two – if they help you professionally. However, we can easily drive into the ditch if we make these things an end to themselves, living solely for that steak or some achievement.

The opposite of level one or two happiness, level three happiness comes from the desire to make a positive difference in someone’s life or in the world. Level four happiness is the desire for perfect truth, love, goodness, beauty, and God himself, which is then expressed in the workplace.

Just remember that only one level of happiness will dominate you, and whatever happiness level is dominant within you will ultimately shape the culture of the organization you lead.

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