Harvard Business Review. ¡°Leaders Underestimate the Value of Employee Joy.¡± March 24, 2026.
Why Employee Joy Becomes Performance
- The Quietest Source of Productivity That Leaders Are Overlooking
[Key Message]
* Employee joy is not a secondary element of perks or workplace atmosphere, but a core management variable that shapes engagement, productivity, and retention.
* Many leaders place employee emotion at the margins of management, but in reality, organizational performance is heavily influenced by emotional energy and the friction costs people experience in everyday work.
* Joy is not simply a good mood. It is closer to the energy to work that comes from feeling that one¡¯s efforts are not wasted, that progress is meaningful, and that relationships are less draining.
* In organizations where employee joy disappears, numbness often spreads before unhappiness does, quietly leading to weaker collaboration, accumulated fatigue, more mistakes, and talent loss.
* In the future, strong organizations are likely to be those that do not push people harder, but instead design work, relationships, and operations so that people¡¯s energy does not run dry.
***
On March 24, 2026, Harvard Business Review pointed out that employee joy is not simply a matter of mood, but an important management variable that affects engagement, productivity, and even turnover intention. Many leaders regard employee joy as a matter of atmosphere or perks, but in real organizations, this emotion functions as a force that determines the sustainability of performance and resilience. As performance pressure grows, it is becoming increasingly clear that the force that keeps people moving for the long term lies more in vitality than in control.
A Quiet Misunderstanding That Eats Away at Performance
On March 24, 2026, Harvard Business Review published an article arguing that employee joy must be viewed again as a central management variable. Its core message was clear. Many leaders underestimate employee joy, and as a result, organizations are overlooking one of the key forces that drive engagement, productivity, and retention. The positive emotions employees feel at work are not incidental elements that merely soften the atmosphere a little. They are closer to the foundation that supports an organization¡¯s execution and sustainability.
This argument matters because most organizations still place employees¡¯ emotions not at the center of management, but at its margins. Companies measure customer satisfaction, market response, sales indicators, and cost structures with great precision, yet they examine far less carefully how alive people actually feel while working inside the organization. Employee joy is often consumed only in the language of perks or culture programs. In reality, however, it is much closer to a core condition that determines how meaningfully people feel about their work, how much less depletion they experience as they make it through the day, and how long they are able to remain in the organization and contribute.
Many organizations are accustomed to explaining performance only in the language of numbers. Visible indicators such as sales, profit, cost, productivity, turnover rate, and evaluation scores have occupied the center of management, while human emotion has been pushed to the outside as something soft and abstract. Within this frame, employee joy has usually been treated as something nice to have, but not necessary for management to function. It has been regarded as little more than a device for softening the atmosphere a bit and making corporate culture less rigid. But real organizations do not move so simply. People are not machines that produce the same performance repeatedly under the same conditions. Under the same tasks, the same tools, and the same systems, some teams come alive while others quickly grow exhausted. This difference is often determined less by ability than by emotional energy.
To say that employees work joyfully does not simply mean that there is more laughter. It means a state in which people find meaning in their work, feel that their effort is not going to waste, see small signs of progress, and are not excessively drained by their relationships with the people they work with. In other words, joy is not a luxury of emotion, but something connected to a state in which the friction of work has been lowered. The less depleted people feel and the clearer meaning becomes, the longer they can concentrate, the more willingly they cooperate, and the less easily they fall apart. This is exactly what organizations miss when they treat joy lightly. Joy is not a matter of mood. It is a matter of operations that allows people to work without losing their energy.
Organizations that sustain performance over a long period are more sensitive to this fact. In the short term, performance can be pushed upward through pressure and control. But to sustain performance over time, people¡¯s inner energy must not run dry. A method based on sheer pressure eventually returns as cost. Turnover rises, fatigue accumulates, collaboration becomes dull, mistakes increase, and resistance to new change grows. On the surface, such organizations may look the same as others, but internally, more and more energy is being wasted. In the end, organizations that ignore joy begin to lean toward grinding people down to sustain performance, instead of generating performance through people.
Why Leaders Underestimate Employee Joy
The reason many leaders underestimate employee joy is simple. It does not appear directly on the financial statements. Costs are clearly visible in accounting. Labor expenses are visible. Turnover rates are visible. Departmental performance is visible. But the helplessness an employee feels when entering a Monday morning meeting, the liveliness that arises when their idea is accepted, or the small sense of satisfaction felt at the end of the workday do not easily become numbers. So management keeps pushing this area aside. Because it is difficult to measure, it is treated as if it were unimportant.
The problem is not merely that leaders do not know. It is that they do not fully recognize the fact that they do not know. The upper ranks view the organization through the big picture. They focus on strategy, investment, restructuring, new business, systems, technology adoption, and cost efficiency. The front lines, by contrast, work their way each day through one meeting, one approval step, one ambiguous instruction, one unrecognized moment at a time. Leaders think they are seeing direction, but employees are living through friction. And what wears people down is usually not the grand strategy itself, but the small, repeated depletion that appears when that strategy descends into daily life.
That is why scenes like this often unfold in many organizations. Leaders say, ¡°We¡¯ve improved a lot,¡± while employees feel, ¡°Then why has it become even harder?¡± New tools have appeared, faster systems have been introduced, and performance standards have become clearer, yet the experience of the day itself becomes more exhausting. Leaders see improvement in numbers, while employees feel the emotional cost of change in their bodies. If this gap is not reduced, organizations gradually come to misunderstand the front lines through the lens of their own certainty.
Another reason is the old mindset that still sees joy as a weak emotion. The more serious the organization, the stronger the belief that it must be colder and tougher. Within that view, emphasizing joy can look like loosening tension and lowering standards. In reality, however, joy is not the opposite of tension. It is closer to a state that reduces meaningless tension and makes meaningful focus possible. People move with greater responsibility when they have energy. Joy is not a force that destroys discipline. It can become a buffer that prevents discipline from crushing people.
How Joy Connects to Productivity
The question of whether employee joy is really connected to performance is a very practical one. No matter how appealing it sounds, if it does not lead to performance, it is hard to bring it into the center of management. Yet when we examine this issue more deeply, joy meets performance in quite direct ways. The first thing that changes when people feel joy in their work is the quality of their concentration. Even when spending the same amount of time, they think more clearly, try to solve problems more proactively, and do not collapse as easily in front of small obstacles. That is because work no longer feels like pure depletion in every respect.
Joy also changes the quality of collaboration. A person whose energy has bottomed out is likely to experience collaboration as additional work. They become sensitive even to a single question, take feedback as an attack, and feel burdened by other people¡¯s requests. A team that is alive, by contrast, experiences less relational friction even while doing the same amount of work. Collaboration is not simply a matter of kindness. It is a matter of reducing the energy wasted in relationships. Organizations with joy reduce that waste. As a result, speed increases, problem-solving becomes more flexible, and the same workforce can produce more results.
Joy also matters in terms of sustainability. Short-term performance can be produced through intense pressure, but sustained performance cannot be created that way. People cannot endure for long in environments that constantly wear them down. At first they endure, then they resign themselves, and eventually they either leave or remain with their hearts already gone. This is where joy connects to retention. What keeps people in place is not always some grand vision or large reward. People stay longer when the repeated routines of work accumulate into a feeling that ¡°this place is still worth working in.¡± Joy is not some grand emotion like loyalty to the organization. It is closer to a state in which daily experience does not completely consume a person.
Another important point is that joy also affects learning and adaptation to change. Organizations today must constantly learn new things. AI adoption, changes in work methods, job redesign, and shifts in collaboration structures have become everyday realities. In such an era, resilience matters more than ability. Joy can become the emotional foundation that supports resilience. A person who still has energy left has room to learn something new, while a person who is already exhausted experiences even a small change as a threat. In the end, in an age of change, joy is not a choice. It becomes a condition for adaptation.
The Opposite of Joy Is Not Misery but Numbness
When employee joy is discussed, misunderstandings often arise. It can sound as though the claim is to turn the organization into a playground. But in reality, the problem is the exact opposite. Most organizations are accepting far too much depletion as normal. Endless meetings, priorities that keep shifting, repeated reporting, unclear roles, time wasted just to get approval, a climate in which fear of mistakes is greater than mistakes themselves, and structures where recognition is scarce but demands are constant—when these pile up, people do not gradually come to hate work. They become numb to it.
This numbness is precisely the condition that weakens an organization most quietly. Anger may still be a state in which some energy remains, because there is still a will to raise objections and change things. Numbness is different. It no longer expects, no longer tries, no longer looks for meaning. On the surface, there may seem to be no major problem, but inside, vitality is drying up. Such organizations do not collapse all at once. Instead, they slowly become duller, slower, less creative, more mistake-prone, and more likely to lose talent. On the far side of joy, this quiet numbness often lies waiting.
What exhausts people is not simply the amount of work. Even difficult work can be endured when it brings a sense of achievement and growth. On the other hand, even easy work quickly drains energy if it offers no sense of control, no meaning, and no visible progress. That is why increasing joy is not the same as increasing company events or trying to brighten the mood. The first task is to reduce the structures that create unnecessary depletion. Injecting fun is not the essence. Removing friction is. Joy is not decoration. It is the result of design.
This issue becomes even more sensitive as technology adoption accelerates. Automation and AI can certainly reduce repetitive tasks. But they can also be used to increase speed, shorten response times, and demand more results within less time. Then, on the surface, productivity rises, but in reality people dry out more quickly. If organizations do not pay attention to employee joy, they can easily miss this phenomenon. They fail to understand why more efficient systems are producing more exhausting outcomes.
What Leaders Need to Change
The first thing that must change in order to raise employee joy is the attitude toward joy itself. Joy must be recognized not as a subcategory of ¡°creating a good atmosphere,¡± but as a core issue in energy management that allows people to keep working. Organizations have managed only people¡¯s skills and time. Going forward, they must also treat people¡¯s emotional energy as an important resource. In an age when what matters is not making people do more, but enabling them to keep moving longer, this shift becomes essential.
The first change is to understand employees¡¯ condition more often and more specifically. One annual satisfaction survey is not enough. People change like seasons. Teams differ. Jobs differ in the points at which they become exhausting. Organizations must look more closely at where people gain energy and where they lose it, which tasks keep people alive and which procedures wear them down. Just as customer experience is analyzed, employee experience must also be read more precisely. Only then can the abstract word joy be translated into the language of actual operational improvement.
The second is a redesign of the manager¡¯s role. An employee¡¯s day is often shaped more by their direct supervisor than by the company as a whole. This is why, under the same systems, in the same company, and in the same industry, some teams feel alive while others feel suffocated. Managers are not only the people who allocate work. They are also the people who shape the emotional climate of the team. The frequency of recognition, the tone of feedback, reactions to mistakes, the ability to organize priorities, and the way autonomy is granted all connect directly to team joy. Organizational culture is formed far more powerfully through a manager¡¯s everyday behavior than through abstract slogans.
The third is operational improvement that reduces unnecessary depletion. People do not become exhausted because they always want new rewards. More often, they are exhausted by too much meaningless waste. It is important to cut useless meetings, reduce duplicate reporting, simplify approval procedures, clarify roles, and create frequent moments in which effort can be felt as leading to results. Structures that let people see small achievements often, structures in which hard work does not disappear unnoticed, and structures in which progress can be felt—these are what create joy. Joy appears more often in a day with less waste than in any grand event.
The fourth is not to separate joy from performance. Even now, many organizations divide joy and performance into soft values and hard values. In reality, however, the two do not move separately. Joy does not weaken responsibility. It makes responsibility bearable. When people are alive, they concentrate more, move more proactively, and stay longer. If organizations do not understand this connection, joy will remain confined to the language of perks. If they do understand it, joy enters the language of management.
The Growing Importance of Emotional Competitiveness
The organizations of the future will likely have to change faster, produce more results with fewer resources, and endure more complex uncertainty. Precisely for that reason, employee joy will matter even more. It will become not a luxury of easier times, but a survival asset in an age of pressure. A strategy that tries to raise performance only by continuing to squeeze people has clear limits. At some point, an organization may still appear fine on the outside while its internal engine has already gone cold.
In the end, strong organizations are likely to be those that do not push people harder, but make it possible for them to keep moving for longer. That strength is not created by pay alone. Nor is it created simply by declarations that people are respected. It begins with designing daily work so that energy is not completely drained away, managing meaning, progress, and the quality of relationships, and recognizing that these things are, in fact, conditions of performance.
Employee joy is not trivial. It is the question of how much the experience of work wears people down, or how much it keeps them alive. Many organizations still treat this question as secondary, but in reality, the quality of productivity, the temperature of collaboration, the direction of retention, and the speed of adaptation to change are all determined here. Joy is not the decoration of a good company. It is one of the quietest foundations of a company that remains strong for a long time.
Reference
Harvard Business Review. ¡°Leaders Underestimate the Value of Employee Joy.¡± March 24, 2026.