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Many people agree: a workplace culture of fear limits employee engagement, productivity, and retention—and by turns, the bottom line. But often, leaders aren’t cognizant that they’ve created that environment. However, Gallup surmises that lost productivity due to lack of employee engagement costs U.S. companies $300 billion annually. Other studies show that happier—and therefore more engaged—employees are more likely to be more “creative, productive, and committed.” In other words, good leadership doesn’t have to be with an iron fist—in fact, more often, it shouldn’t include iron or fists at all.

One way for leaders to ensure that they aren’t creating a culture of fear is to consciously do the exact opposite—create a culture of happiness and fun. Which can be daunting; after all, to some leaders, “fun” might seem frivolous, and other leaders might see “happiness” as the employee’s responsibility. However, just a few changes to the environment can make all the difference to an employee’s productivity.

To start, you can try something small, like improving consistency, timing, and relevancy of your performance feedback. It’s hard to capture everything an employee has done over a year in just one annual review; sending an email, writing a quick note of thanks, or even just a little face-to-face recognition once or twice a week can help your employee feel valued and therefore happier. To get into the habit, try choosing one day each week (Feedback Friday, perhaps) when you’ll focus on something each of your employees has accomplished in the previous week.

Once you’ve mastered regular, timely feedback, try creating a culture of celebration—the wins, the triumphs, the key learnings your team experienced are all worth public note. Gather your group together (whether for a quick conference-room meeting or even an after-work happy hour) and let everyone know what their teammates have been up to. You’ll show your employees their worth, and you could be starting to create a stronger, more supportive and reciprocal team atmosphere.

To continue creating a fun workplace, allow your staff to actually have fun. Let them bring their personalities into the office. It doesn’t have to be extensive, and you can certainly set limits, but remember that employees often like to feel comfortable in their work-spaces, and that can start with a little decoration. You can lead the parade in your own work-space, by adding hints or bursts of decoration, and you can even go a step further by adding a level of relaxed enjoyment through daily banter. Once your employees see you acting that way, they’ll likely follow suit.

 

Changing habits can be hard. However, stepping away from that habitual space can reap rewards, and just these few simple steps can improve employee dedication, loyalty, and productivity. In the face of all your business stands to gain when you actively create an environment of happiness and fun, it just stands to reason that fun is a wise path.