Tuesday, August 4, 2009

Does Employee Satisfaction Lead to Higher Profits?

Or more importantly, does low employee engagement lead to a drop in profits? A recently published article from Wharton University of Pennsylvania examines the issue. In a paper titled, "Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices," the stock returns of companies with high employee satisfaction are compared to various benchmarks -- the broader market, peer firms in the same industry, and companies with similar characteristics. This research indicates that companies with high levels of employee satisfaction earn returns that are more than double those of the overall market.

Organizations of all sizes see that employee engagement is directly correlated with employee productivity and company performance. Despite this, senior management sometimes forgets it's still critical to focus on engagement, even during an economic downturn. Some figure, why bother making sure employees are satisfied when they are likely to stick around and perform anyway? See how investing in employee satisfaction surveys can help not only your workplace, but your bottom line in 2009. For a guided Webinar walking you through Insightlink's 4Cs survey process, contact us at info@insightlink.com or call 866-802-8095 x705.

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