I’ve worked in all kinds of environments, from small non-profit and for-profit companies all the way up to a Fortune 100. During these experiences, I’ve noticed that productivity appears to be directly tied to employee happiness, and it turns out there’s scientific data to back up my observation.

The New York Times reported on a 2010 study that linked unhappy workers with lower company profits. More recently, I took a leadership course at the NYU Stern School of Business, and the topic of employee engagement came up again. The class helped me articulate what I’ve seen first-hand in the workplace: managers need to take proactive steps to boost worker happiness and productivity. Here are three key steps:

1. Set Clear Goals

Organizations are evolving toward a matrix model of management. Simply put, employees will have a functional manager based on their background and a divisional manager based on a category of business.

Employees must negotiate competing priorities daily, and the best way to alleviate this challenge is to ensure that there are clear over-arching corporate priorities that supersede any individual manager’s goals. When I worked at a large retailer, I remember distinctly the tension between the marketing and merchandising groups who would clash over telling space and selling space on the website. The inability to resolve these mandates eventually led to a change in leadership, and the subsequent modification of the bonus schemes for both groups.

2. Express Gratitude Daily

Chances are that if you’ve recruited talented people and identified clear goals, the majority of their work will serve the best interests of the company. By creating an environment where feedback is expected, you are continually reinforcing the notion that you notice when a job is done well (or needs improvement).

Taking the time to consistently recognize these efforts with gratitude can motivate individual employees and encourage teamwork. When recognition is sparse, it creates a gratitude deficit; one person’s success or praise can be interpreted as another person’s missed opportunity.

The merchandising group at Target is an excellent example of continuous feedback and recognition. Employees can expect to receive weekly check-ins with managers who highlight wins and opportunities, team meetings where peers are encouraged to read “Great Team Cards” praising collaborative efforts, monthly meetings where directors deliver excellence awards, and annual rallies where the most outstanding performers are recognized with trophies handed out on a stage by the senior leadership team.

3. Share the Success

My favorite part about working at Parham Santana is the collaborative environment. In addition to clear goals and frequent recognition, another prerequisite for teamwork is respect for the individual.

I work alongside mental giants and creative geniuses, on a team that finds stimulation in working for the world’s best-known brands. At Parham Santana, we incentivize staff based on shared success, ensuring that as we expand the pie of profitability, it’s divided among all the bakers. In addition to a profit sharing plan, we take time out with large clients to toast successful projects, and twice a year we host parties with our office staff.

It’s not only more fun to come to work when you love the culture; it boosts productivity and profits, too. What manager wouldn’t want that?

If you liked this post, check out:

From Frieze New York to Retail: Reflective Surfaces Go Bigger and Bolder for 2014