WE all know what it is yet most of us are completely baffled by it. Happiness, it has to be said, is a perplexing issue.

Those three little syllables can make all the difference between looking forward to going to work each day and dreading every single moment.

But ask what the secret of it is and many of us can't quite put our finger on it - or are totally stumped. It seems it's far easier to yearn for happiness than to achieve it.

Research by HR consultancy Chiumento goes some way to shedding light on the situation.

According to a study they carried out earlier this year it's mates - not money - that make our working worlds go round.

Having good relationships with colleagues was cited by 73 per cent of employees as the key reason they enjoy their job, compared to just 48 per cent who think financial reward is a better friend.

And although only one in five actually confessed to being unhappy, the more miserable a worker is the more likely they are to see money, or a perceived lack of it, as an underlying cause.

Perhaps surprisingly the study found that a quarter of us are actually happy with our lot, suggesting that for all our whinging about the daily grind we don't hate it anywhere near as much as we make out.

Figures also reveal women are more content with their jobs (82 per cent compared to 78 per cent of men) and those aged 55 and above are the happiest of all (85 per cent), perhaps because they've already reached the pinnacle of their careers.

Those in their 40s are the least satisfied with their situation, while small businesses seem to boost the happiness quota, whatever your age.

Simon Briault, a spokesperson for the Federation of Small Businesses, said: "In small businesses there is an informal, personal atmosphere that you don't get in large organisations.

"People talk a lot, which means problems and office politics tend to get ironed out early on. In the small business workplace there's a lot to be said for face-to-face contact and working things out."

Indeed, organisations employing between 20 and 100 members of staff boast a happiness success rate of 86 per cent, falling to 78 per cent for larger firms with more than 1000 staff.

So what other influencing factors are at play? Poor communication from those at the top is the main frustration for just under half those questioned, increasing sharply to 71 per cent of very unhappy employees. Long periods of service may also create ill-feeling among workers.

Statistics show that 82 per cent of people who have been with their employer for two years or less are happy, whereas this stands at just 76 per cent among those who have been with their employer for 10 years or more.

It seems that a honeymoon' period exists in work as well as in love.

Contentment can play an important part in a business's bottom line and success, no matter how subjective it may be, so it's well worth making the effort to understand what boosts workers' spirits and what drags them down.

Chief executive Sarah Chiumento said: "Organisations might question the relevance of employee happiness but a happy worker is likely to be more productive and perform better.

"Simple ways to boost happiness include treating staff fairly, ensuring communication is good and fostering a positive atmosphere in the workplace."

The survey should certainly help managers understand their underlings better.

Ranked in order, here are the top five things that make us happy at work, according to the Chiumento research: 1. Friendly, supportive colleagues 2. Enjoyable work 3. Good boss or line manager 4. Good work-life balance 5. Varied work And here are the things that send our joie de vivre plummeting: 1. Lack of communication from the top 2. Uncompetitive salary 3. No recognition for achievements 4. Poor boss/line manager 5. Little personal development Sarah Chiumento concluded: "If organisations think a little more deeply about what employees really want and what will make them happy, they could reap the rewards.

"Happy employees will not only improve the working environment but also increase revenue."