More organizations seem to be addressing issues like employee happiness and well-being. There is even a “Wellness Building Standard” that organizations are using to design and operate their workplaces in a more employee-supportive way. It may be nice that employees like their employers, but is to good business?
In an 8/6/14 article in Triple Pundit, Raz Godelnik provides a great overview of recent research that suggests a very strong connection between employee satisfaction and financial performance. She cites a study by Alex Edmans and Chendi Zhang that found “employee satisfaction is associated with positive abnormal returns in countries with high labor market flexibility.” These same researchers have compared firms noted as “best places to work,” and found significantly higher stock returns.
It appears that investing in employee happiness through programs and workplace improvements is more than good-hearted …
It’s good business.