What really makes us happy?

If you think the next pay rise will make you a happier employee, you are only partially right according to a new study. It goes without saying that we all need to live, and to live comfortably requires a reasonable income. When it comes to long-term, broad contentment however, it seems more is not better when it comes to the cold hard stuff.

The study, a combined effort between Purdue University and the University of Virginia linked with research by psychologist Daniel Kahneman and economist Angus Deaton, looked at happiness results from 1.7 million people across 164 countries. The researchers found that if you are looking for day-to-day feelings of happiness and not more meaningful life satisfaction, you can achieve the good vibes on $60,000 – $75,000. If are looking for a greater sense of ongoing fulfilment, the optimal average salary for an individual is $95,000. After these numbers are reached, the relationship between wellbeing and income decrease, although the researchers agree that there may be other benefits of earning more.

“Increases in happiness tend to diminish as you make more money,” Andrew Tebb, lead author of the study told Fast Company. “A $20,000 increase from $30,000 to $50,000 is likely to bring more change to your life than if you make $20,000 on top of $150,000.”

Given it’s not money, what really does make us happier at work and in life in general?

According to Mikkel Hundborg from the Job Satisfaction Research Institute in Denmark, there are three key things that contribute. While we all know humans are complex and there is no magic happiness unicorn that spreads happy dust (sad, but true) following this advice might just pave the way for more fulfilled employees.

The first thing Hundborg suggests in his work helping people feel happier and more fulfilled in their work life, is creating purpose.

 “There’s one thing that stands out from everything else when it comes to making people happy at work – and that’s having a sense of purpose,” Hundborg says. “That doesn’t just mean finding a higher purpose, such as saving the planet or helping people in need. These kinds of things are important, of course. But even more important is to have a sense of personal, inner purpose. This really drives happiness at work.”

To encourage your employees to find purpose, he suggests creating an environment where they can prosper individually in their roles while also being, and knowing that they are, an integral part of the company.

“Purpose is created when you are proud of your work and feel you are an important and needed part of the company. Once you have purpose, you have the foundation for happiness at work.”

“The second most important factor when it comes to feeling happy at work is what we call ‘mastery’”

He explains mastery as employees feeling not only competent in their roles, but that they are also learning and developing. Essentially, a feeling that their talents are being put to good use to achieve the tasks required of them and that they are not stagnant in their role.

The third element leading to happiness at work, according to Hundborg, is good leadership.

“Our happiness at work is directly linked to our relationship with the people or person leading us,” Hundborg says. “It’s vital that we trust our bosses and get on well with them.”

Interestingly, purpose, being valued and good leadership often come up on engagement scales as top influences of employees feeling satisfied and engaged at work. However, Hundborg issues a word of caution for employers who are looking to bump up employee happiness. Essentially, don’t get caught up trying to create short-term fixes as there will be no ongoing benefit.

“A bonus, a small raise or a social event might give employees a short-term boost," he says, "but it doesn’t have any real impact on happiness because it doesn’t stop you being stressed and it doesn’t make the work you do more meaningful.”

Looks like the things that make us happy – purpose, being valued, recognition and good relationships – make us happy at work and in our personal lives.

Time to stop vying for the next pay boost and slow down at the Friday office par-tay. To increase happiness for yourself or your employees, try to create a greater sense of purpose in what you are doing, look for relationships that are built on meaningful connections - not martinis and cheese cubes - and recognise those people you value. Remember, that recognition is reciprocal and the more you show others how much you value and appreciate them, the more you will understand how much they value you too.

Follow this advice and the benefits will be more than just a clear head to kick-off the weekend.