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Happy Software Developers Solve Problems Better
First time accepted submitter HagraBiscuit (2756527) writes Researchers from the Faculty of Computer Science, Free University of Bozen-Bolzano, Bolzano, Italy, have quantified and analysed affective mood index against objective measures of problem-solving effectiveness for a group of software developers. From the report abstract: "The results offer support for the claim that happy developers are indeed better problem solvers in terms of their analytical abilities. The following contributions are made by this study: (1) providing a better understanding of the impact of affective states on the creativity and analytical problem-solving capacities of developers, (2) introducing and validating psychological measurements, theories, and concepts of affective states, creativity, and analytical-problem-solving skills in empirical software engineering, and (3) raising the need for studying the human factors of software engineering by employing a multidisciplinary viewpoint.
It's not just software development, but any job. If the employees are happy about how they're being treated, they'll do the best job they can, because they want to stay with the company. If they're not, they're going to do the bare minimum to stay employed while they look for another job at a better company.