It’s always nice when science confirms that doing the right thing makes business sense too. As HR departments know taking good care of your employees is expensive. But a study shows that a good HR policy pays. A data analysis done over a period of 28 years demonstrates that firms with high employee satisfaction outperform their peers by 2.3 percent to 3.8 percent per year in long-run stock returns—89 percent to 184 percent cumulative—even after controlling for other factors that drive returns. Moreover, the results suggest that it’s employee satisfaction that causes good performance, rather than good performance allowing a firm to invest in employee satisfaction.
Study: Employee satisfaction drives long-term value of companies
More of Today's Solutions
Europe’s low-carbon future: Denmark’s North Sea oil field is now a carb...
Once a symbol of fossil fuel extraction, the remote Nini oil field in the North Sea is preparing for a new role: storing millions ...
Read MoreGrace Richardson makes history as first openly gay Miss England: ‘I’ve achiev...
BY THE OPTIMIST DAILY EDITORIAL TEAM When Grace Richardson took the stage at the Miss England final in Wolverhampton, she wasn’t just chasing a ...
Read MoreWorld’s first hydrogen-powered cargo vessel to set sail in Paris this year
In a world's first, a commercial hydrogen-powered cargo vessel will make its maiden voyage later this year. Developed by French shipowner Compagnie Fluvial Transport ...
Read MoreA guide to self-kindness: transforming negative self-talk into positive affir...
As we go through the motions of daily life, it's tempting to listen to our inner critic's constant commentary. Negative self-talk, or the constant ...
Read More
