What is happiness?

Our experience
5 Mins Read

What modern science knows about happiness, how it can be leveraged, and its applications in corporate settings, as well as actions you can take in your personal life to become a bit happier. I believe this can spark ideas for what you might implement in your company, family, or personal life regarding the phenomenon of happiness.

Happiness as a Key Life Metric

Life satisfaction, or happiness, is a fundamental metric for every individual. It answers life’s most critical questions: "Am I living rightly?", "Am I headed where I should be?" After all, our personal happiness defines the true quality of life.Imagine being healthy and wealthy yet profoundly unhappy. Is that the ultimate goal? Happiness isn’t merely a pleasant bonus—it’s a core metric every person consciously or unconsciously strives toward.

WHR: Measuring the Intangible

To thoroughly investigate life satisfaction and address key questions about happiness, the World Happiness Report (WHR) was launched. This authoritative publication represents the largest global study of happiness as a phenomenon and has been published annually since 2012. For over 12 years (the 2024 report uses 2023 survey data; the inaugural report debuted in 2012), it has compiled data encompassing the vast majority of countries and the global population.

The research is conducted under the auspices of the UN. Fieldwork—including population surveys—is executed by Gallup, the world leader in opinion polling. Data processing and primary analytical reporting are handled by the University of Oxford’s Sustainable Development Solutions Network (SDSN). Maxim Zhurilo, founder of Stayf, is closely associated with this center. Additionally, experts from Columbia University (USA) and the London School of Economics (LSE) contribute to the project.

How Companies Interpret WHR Data

While core WHR analytics are processed at Oxford, Gallup surveys cover representative samples across 150 countries. For businesses, this data serves as a unique macro-level indicator of overall wellbeing in their operating regions.

Companies leverage WHR insights to:

  • Shape strategic priorities (e.g., prioritizing wellbeing programs in low-happiness regions)

  • Launch evidence-based initiatives to enhance employee satisfaction using global happiness trends and drivers

WHR Methodology: The Cantril Ladder

The cornerstone methodology of the World Happiness Report is the Cantril Ladder. This approach relies on self-assessment principles—measuring happiness (life satisfaction) directly through individual responses. Crucially, the question avoids direct phrasing ("Are you happy?") in favor of nuanced framing.

Developed by sociologist Hadley Cantril, the now-classic formulation asks:

"Please imagine a ladder with steps numbered from 0 at the bottom to 10 at the top. The top step (10) represents the best possible life for you. The bottom step (0) represents the worst possible life for you. On which step of the ladder would you say you personally stand at this time?"

This deceptively simple scale—anchored in respondents' subjective life perceptions against personal ideals and fears—has become the gold standard for wellbeing measurement. Gallup administers this exact question to representative samples of ~2,000 respondents across each of 150 countries.

While supplementary questions are included (e.g., projected ladder position in 3 years), the Cantril question remains the primary metric for assessing current life satisfaction.

The World Happiness Landscape: From Suffering to Wellbeing

Analysis of WHR data reveals significant disparities in life satisfaction levels across nations:

  • Extremely Low (1-2 points):

    Reflects profound distress and severely challenging living conditions. Predominantly seen in select African and Asian nations.
  • Below 4 points:

    Falls within the suffering zone—not merely unhappiness or dissatisfaction, but a state where average citizens face objectively difficult circumstances.
  • 4-6 points:

    Represents moderate satisfaction, characteristic of a "more or less normal" standard of living.
  • Above 6 points:

    Indicates approaching high happiness levels. Nordic countries lead here (e.g., Finland, Denmark), with averages reaching 7-8 points—reflecting exceptionally high subjective wellbeing.
Myth-Busting and the Economic Paradox

WHR data debunks widespread stereotypes, such as the belief that warm climates and "palm trees" guarantee happiness. Conversely, residents of colder northern nations show significantly higher wellbeing than populations in many sunny but impoverished regions (e.g., Sahel countries).
While economic development (GDP) undoubtedly impacts welfare, its effect has diminishing returns: beyond a certain wealth threshold, further GDP growth fails to yield proportional gains in happiness—a crucial yet counterintuitive finding.

The Happiness Formula: Cantril Ladder

WHR's statistical model identifies six universal factors that collectively explain 75% of happiness variance between nations. Each factor carries a specific weight (coefficient)in the regression analysis.

The weighted composite score of these factors accurately predicts a nation's average life satisfaction rating on the Cantril Ladder. This high explanatory power (75%) confirms these factors as fundamental drivers of global wellbeing.

Six Wellbeing Factors & Global Insights

WHR researchers confirm: six core factors collectively explain 75% of happiness variance between nations (with high statistical significance):

  • GDP per capita (PPP): Economic prosperity adjusted for local prices.

  • Healthy life expectancy: Healthcare access and quality.

  • Social support: Availability of reliable help in crisis (family/friends).
Kazakhstan ranks exceptionally here – 18th globally.

  • Freedom to make life choices (Autonomy): Self-determination in life paths.
(Do you feel free to live as you choose?)

  • Generosity: Willingness to donate to charity.

  • Absence of corruption / Institutional trust: Perceived integrity of government and business.

    (How much do people trust institutions?)

Additional daily emotional metrics are tracked, but these six remain primary.

Blueprint of a Thriving Nation

High-happiness countries typically feature:

  • High GDP per capita (economic strength)
  • Long healthy lifespan (effective healthcare)
  • Robust social support (strong community bonds)
  • Broad personal autonomy (freedom of choice)
  • Widespread generosity (culture of giving)
  • Low corruption & high institutional trust (transparent governance)
2025 Report Key Findings
  • Altruism’s Resilience
    Global volunteering and mutual aid remain strong. Corporate volunteering programs amplify this trend.
  • Mental Health
    Primacy
Combating depression/anxiety could reduce unhappiness by 20% – outpacing poverty alleviation impact.
  • Movement = Happiness

    150+ weekly minutes of physical activity boosts happiness by 0.3-0.4 points. Workplace wellness programs are evidence-based solutions.
  • Trust Reduces Inequality
    Nations with high institutional trust show narrower happiness gaps between citizens. Companies cultivating manager-employee trust increase average satisfaction while reducing polarization.
  • Youth Loneliness Crisis
    1 in 5 (20%) people aged 18-30 report having no one to turn to for help – a 40% surge in under a decade. Businesses can foster social connections, especially for young employees.

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