Tuesday, September 14, 2010

Happy Employees = Higher Stock

From Metropolis. Image link from Blue Crab Boulevard
Today Cindy Krischer Goodman of Kansas City reports something that most people probably expect anyway:  companies with happy employees perform better. Hewitt Associates, a human resources firm, conducted a survey of employee engagement. The survey found that organizations with high levels of employee engagement (65% or higher) post shareholder returns 19% greater than average, while companies with less than 40% engagement have shareholder returns 44% lower than average. These findings may seem like common sense, but it's nice to have real evidence, because that's what companies actually listen to (if they listen to anything).

So here's a message to employers out there:  make sure your work environment is a happy place! Machine-like efficiency standards, such as scientific management, are outdated. Even if you only care about stock prices, it's still worthwhile to invest in happiness. Open lines of communication with your employees and actually LISTEN. Don't just pretend, like with a dusty old suggestion box that you never open. Read up on modern organizational communication, proven methods for happier employees and better companies.

I might go into detail about orgcomm in the future, because we all spend so much of our lives at work that it's important to be happy there, but the science of it can seem rather technical without an explanation!

1 comment:

  1. It's always nice to have real evidence indeed - especially useful when it comes to arguments where the opponent doesn't believe what you say :)