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
Break your doomscrolling habit: calm your anxiety and reclaim control
In times of anxiety, the modern era has given us a popular but harmful coping mechanism—doomscrolling. A cognitive response similar to ruminating, doomscrolling entails ...
Read MoreUnleashing the power of joy lists
In their quest to break away from life's monotony, many people have discovered the transforming concept of a pleasure list. The joy list is ...
Read MoreParis 2024 Olympics: 8 highlights & viral moments that captivated the world
BY THE OPTIMIST DAILY EDITORIAL TEAM The Paris 2024 Olympics brought together athletes from all across the globe, demonstrating sport's ability to connect and ...
Read More7 overlooked money tips for a stronger financial future
BY THE OPTIMIST DAILY EDITORIAL TEAM We’ve all heard the standard financial advice: stick to a budget, save for a rainy day, and avoid ...
Read More
