Co-workers, results and recognition boost employee happiness

The survey of 2,000 employed UK adults, commissioned by HR, payroll and benefits software provider Ciphr has found that people typically feel happy 18 days a month (so not just at weekends).

And the older workers get, the happier they are, it seems. One in six (18%) employees over 55 said they feel happy every day, compared to one in eight (12%) 45-54 year olds, and one in 11 (9%) employees under 45.

On average, most (88%) people can name at least one thing about their job that makes them feel happy. The average across all employees is five things.

For many, the social relationships they have with others are often the biggest contributors to their happiness. At home that’s their family and friends, and at work it’s the people – their co-workers, teams and managers – they interact with. 

When it comes to employee happiness, nothing quite beats having a positive connection with our work colleagues. For over a third (36%) of those surveyed, it’s what makes them feel happiest at work. Seeing the results and impact of their work comes a very close second (36%). 

Pay doesn’t even feature in the top five. Recognition (selected by 34% of respondents), purposeful work (34%) and job satisfaction or enjoyment (33%) are all more likely to make people happier at work than their compensation package (31%).

Around a quarter of employees also find their happiness increased by having flexible working (28%), work variety (27%), autonomy (26%), and being part of a team (24%).

Employees were also asked how they felt about their work more generally. And it’s these results that highlight how people’s happiness – feeling happy or unhappy – can influence how they view different aspects of their jobs. 

Ciphr’s research suggests that ‘happier’ people tend to have a more positive outlook on their jobs and view their employee experience more favourably. Employees who feel happy more often than not are significantly less likely to think about changing jobs, and more likely to find their work enjoyable, than employees who feel happy less often .   

People who feel happy 20 days or more a month are twice as likely to feel engaged and fulfilled by their work, to feel valued, and to feel listened to by their employer. Nearly three-quarters (72%) of this group find their job fulfilling and engaging all or most of the time. Two-thirds (67%) think that their skills and experience are being fully utilised, and 63% feel that their views and opinions are listened to. 

And the more employees like their work, the ‘happier’ they are. Over two-thirds (68%) of employees who said they enjoyed their job, feel happy 20 days or more a month. 

In comparison, those who only feel happy 10 days or less a month reported significantly lower job satisfaction. Nearly half feel overworked (47%) and regularly think about leaving their jobs (44%) vs 21% and 16% of the ‘happier’ cohort. Only a third (35%) believe their skills are being fully utilised, only 32% feel engaged, and only 32% feel valued.

The study also shows that different things make employees happy depending on the seniority of their job, and the industry they work in.

The top source of employee happiness for non-managers is their work colleagues (selected by 36% of those in non-management roles), followed by recognition and job satisfaction (33% each). 

People working at middle management level or higher are the most likely to say that seeing the results of their work makes them feel happy (42% vs 30% of non-managers). They are also more likely to be happy with their salary and benefits (37% vs 26%) and are more likely to say that they like the company they work for (26% vs 17%).

The employees most likely to say that they enjoy their jobs are IT professionals (selected by 44% of respondents in this sector), followed by people working in social care (40%), healthcare (39%), education (38%), and accountancy, banking and finance (32%).

Outside of work, spending time with family and friends, relaxing and having financial security are what makes people feel happiest. 

Karen Lough, director of people at Ciphr, says: “Despite our many differences, people do share many things in common when it comes to who and what makes us happy. Generally, people are happiest when they feel connected – whether that’s spending time with their loved ones or working alongside people they get on with, when they feel financially secure, and when they feel relaxed and well rested.

“Happiness is important for our health and wellbeing. It can help counter stress and burnout and help you feel more energised and engaged. 

“So, when employees aren’t happy at work, it shows up in their performance. Their energy fades, as does their job satisfaction, and they are less likely to go that ‘extra mile’ to get the job done. From an HR perspective you can spot it in engagement scores, retention risk, and turnover. 

“Employers can’t control everything that might negatively affect people’s happiness at work. But there’s lots they can do. Happiness is built by doing the basics well: making sure that employees are treated fairly, are doing meaningful work, that they have clear expectations, the right tools, opportunities for career growth, managers who can support them, and, most importantly, have leaders who are transparent, authentic, and who listen and keep their word. 

“The importance of recognition – recognising effort, not just outcomes – also shouldn’t be underestimated. Because, as this survey shows, people really do feel happier knowing that their employer appreciates and values their work.”

Lough outlines some practical steps that employers can take to help boost employee happiness:

• Show consistent appreciation: Lean into simple but meaningful gestures that demonstrate genuine recognition. Make them a regular feature. Whether that’s internal shout-outs, thank you notes, an early Friday finish, or coffee vouchers, it can have a big impact. 

• Create spaces for people to connect: Happiness at work is strongly linked to feeling a sense of belonging and connection. Give people opportunities to come together and feel included, through regular social events, all-hands meetings, and employee-led resource groups (ERGs). 

• Develop managers: Give managers skills and tools to actually manage. It makes them feel valued and more motivated, and helps future stars to develop too. Having the right frameworks to use (such as with performance management or recognition) can reduce anxiety and improve confidence for both managers and employees.

• Ensure employees have a voice: Building an honest, two‑way relationship with employees is vital. Setting up employee networks or employee resource groups, holding focus groups, employee surveys, and sharing transparent updates (especially around difficult subjects like redundancies or restructures) shows employees that their voices matter, that they will be listened to, and that leadership isn’t hiding the hard messages.

• Bring clarity and purpose: People work better when they know where their organisation is going and how their role contributes. Communicating and translating company strategy and goals in a way that means something to employees (using the V2MoM framework, for example) gives people a sense of direction, focus and clear objectives.

 

Lough adds: “At Ciphr, we know that employee happiness is vital to our success. So much so that, every month, we ask our people to record how happy they feel at work in their monthly performance catch ups. Those insights are reviewed and reported to our board. This regular and ongoing feedback helps us understand what's driving wellbeing, where we need to improve, and how we can better support our people.”

Ciphr’s study into what makes people feel happy (at home and at work) is available at https://www.ciphr.com/infographics/what-makes-people-feel-happy. The research includes the results from a survey of 2,000 employed UK adults, commissioned by Ciphr and conducted by OnePoll, in February 2026.

Ciphr is the go-to HR and payroll software partner for UK organisations with 200 to 2,000 employees. Its integrated HR, payroll, benefits, learning and recruitment software, services and content provide invaluable insights to HR teams to help inform their people strategy and grow and develop their organisations. Ciphr is on a mission to amplify the voice and value of HR through intelligent people data solutions that help HR be heard – in the boardroom and across the business. 

For more information, please visit www.ciphr.com. 

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Media enquiries:

Emma-Louise Jones, digital PR manager at Ciphr
e:  ejones@ciphr.com  

Chris Boddice, chief marketing officer at Ciphr
e: cboddice@ciphr.com
Website: www.ciphr.com
LinkedIn: www.linkedin.com/company/ciphr 

Notes:

Ciphr commissioned a survey (via OnePoll) of 2,000 UK employees in February 2026.  The results are available at https://www.ciphr.com/infographics/what-makes-people-feel-happy 

An infographic showing the top 10 things that make people feel happy is available at (please credit and link to ciphr.com): https://www.ciphr.com/hs-fs/hubfs/research-pr/Top-10-things-that-make-people-feel-happy.png  . 

About Ciphr

Ciphr is the go-to HR and payroll software partner for UK organisations with 200 to 2,000 employees. Its integrated HR, payroll, benefits, learning and recruitment software, services and content provide invaluable insights to HR teams to help inform their people strategy and grow and develop their organisations. Ciphr is on a mission to amplify the voice and value of HR through intelligent people data solutions that help HR be heard – in the boardroom and across the business. 

The Ciphr Group is a privately held company backed by ECI Partners and headquartered in Reading. Over 230 employees work across the group, which includes Ciphr and Avantus (FlexGenius), as well as its previous acquisition Marshall E-Learning (now known as Ciphr eLearning). 

Ciphr spokespeople are available to provide expert media comment on a broad range of topics, including HR strategy, people management, employee experience and wellbeing, AI in HR, payroll, benefits and rewards, diversity, equity, and inclusion (DE&I), learning and development, the future of work, tech trends, business and leadership, marketing, and more.