By Ramkumar Seshu, Author of Born to Win and Leadership Lessons from the Bhagavad Gita

In my forty-three years of working with organizations across India, I’ve witnessed something heartbreaking: brilliant companies destroying themselves not only through market failures or competitive pressure, but through the simple act of making their people unhappy.

Let me share what I’ve learned about the devastating cost of poor leadership—and more importantly, how creating happy workplaces isn’t just the right thing to do, it’s the most profitable thing you can do.

The Happiness Drain: When Leaders Kill Joy

Last month, I received a call from Rajesh, the CEO of a promising IT services company in Bangalore. “Ram sir,” he said, “we’re hemorrhaging talent. Our best people are leaving, productivity is down, and I can’t figure out why. I think our salaries are competitive, our projects are interesting, but people seem… unhappy.”

When I visited his office, the atmosphere told the whole story. Despite having a workspace with good facilities, there was no energy, no laughter, no spark. People worked with their heads down, avoided eye contact with their managers, and were eager to leave office exactly at closing time.

The problem wasn’t the company—it was leadership that had forgotten how to create happiness at work.

Research from Gallup reveals a sobering truth: “75% of the reasons people quit come down to their managers.”¹ When I analyze this through the lens of creating happy workplaces, the picture becomes even clearer. People don’t leave companies—they leave unhappy work environments created by leaders who don’t understand that happiness is a business strategy.

The Million-Rupee Mistakes: What Unhappy Workplaces Really Cost

Let me put this in terms every CEO and CXO will understand: unhappy workplaces are profitability killers.

The Attrition Conundrum

Here’s what most leaders don’t realize: replacing an employee costs far more than most people calculate. The Center for American Progress found that replacing a mid-level employee costs approximately 20% of their annual salary, while for highly skilled executives, it can reach up to 213% of their annual compensation.²

Think about it: if you’re losing a ₹10 lakh manager due to an unhappy workplace culture, you’re spending ₹2 lakhs to replace them. For a ₹30 lakh executive, that’s ₹6.4 lakhs. Scale this across a 500-person organization with even 10% annual attrition, and you’re looking at crores in avoidable costs. Add to this the time and effort taken to hire a replacement and train them and get them to be productive- the costs are way above that mentioned in the study above.

But here’s what the statistics don’t capture: I’ve seen companies where the best performers—those who contribute—leave not because of money, but because they couldn’t bear another day in an unhappy work environment.

Enhancing Productivity – The Opportunity

In our Winning to Lead programs, We work with senior executives who are often shocked to discover how much productivity they’re losing through unhappy teams. Our process helps engage people, stop walking on eggshells around their managers, and create joy in their work, productivity obviously is enhanced.

I remember working with Aparna, whose team after implementing our “I Can, You Can, We Can” approach—focused on creating happiness through recognition, empowerment, and clear communication—her team’s productivity increased and more importantly, people started smiling at work again.

The Innovation Challenge

Unhappy workplaces kill innovation. When people are stressed, demoralized, or fearful, they don’t think creatively. They don’t suggest improvements. They don’t go the extra mile.

Anand, a software development manager I worked with, was frustrated that his team never came up with innovative solutions. “They just do what’s asked and nothing more,” he complained. When we observed his team dynamics, the reason was clear: his leadership style had created an atmosphere where people were afraid to suggest ideas for fear of criticism.

After working on creating a happier, more supportive environment—where ideas were welcomed, mistakes were learning opportunities, and achievements were celebrated—his team started proposing solutions that saved the company ₹50 lakhs annually.

The Happy Workplace Advantage: Leadership That Creates Joy

Here’s what I’ve learned: companies that prioritize creating happy workplaces don’t just avoid these costs—they become magnets for talent and catalysts for extraordinary performance.

The Research Speaks

Organizations that invest in leadership development see remarkable returns. Harvard Business Review research shows that companies successful at implementing leadership development programs report 35% increases in revenue.³ But what this research doesn’t capture is the happiness factor—when leaders learn to create joy and engagement, the results are exponential.

The Born to Win Difference

Through our Winning to Lead and Inspire & Win programs, we’ve helped hundreds of leaders transform unhappy workplaces into thriving, joyful environments. Here’s what we focus on:

Creating “I Can” Leaders: Leaders who believe in their own potential naturally inspire happiness in others. When you’re confident and positive, that energy spreads throughout your team.

Building “You Can” Cultures: Happy workplaces are built by leaders who see potential in their people and actively work to develop it. When people feel valued and supported, happiness follows naturally.

Fostering “We Can” Teams: The happiest workplaces are those where people feel part of something bigger than themselves—where collective success is celebrated and individual contributions are recognized.

Your Path to a Happy, Profitable Workplace

The choice is clear: you can continue bleeding money through attrition, lost productivity, and missed innovation, or you can invest in creating a happy workplace culture that drives extraordinary results.

At Born to Win, we’ve seen the transformation firsthand. Companies that prioritize happiness and positive leadership don’t just reduce costs—they become industry leaders. Their people stay longer, work harder, innovate more, and create the kind of positive energy that attracts customers and top talent.

The question isn’t whether you can afford to invest in leadership development and workplace happiness. The question is: Can you afford not to?

Because in my experience, the cost of unhappy workplaces is always higher than the investment in creating happy ones. And the returns—in terms of profitability, growth, and human fulfillment—are beyond what any spreadsheet can capture.

Ready to transform your workplace culture and stop the bleeding? Let’s discuss how Born to Win’s approach can help you create a happy, high-performing organization where people love to come to work.

References:

1. Gallup. (2024). “42% of Employee Turnover Is Preventable but Often Ignored.” Available: https://www.gallup.com/workplace/646538/employee-turnover-preventable-often-ignored.aspx
2. Center for American Progress. (2012). “There Are Significant Business Costs to Replacing Employees.” Available: https://www.americanprogress.org/article/there-are-significant-business-costs-to-replacing-employees/

Harvard Business Review. (2022). “How L&D Leaders Can Prove the ROI of Leadership Training.” Training Industry. Available: https://trainingindustry.com/articles/leadership/how-ld-leaders-can-prove-the-roi-of-leadership-training/