It seems intuitive that a happier, more engaged workforce will result in a more effective workplace – and now we have stats to prove it.
A satisfied workforce does result in greater business performance, according to a study from University of East Anglia’s Norwich Business School.
The research, ‘Employee Satisfaction and Corporate Performance in the UK’, analysed 35,231 employee ratings from Glassdoor for 164 large UK companies between 2014-2017.
Firms rated higher on the review site by their current employees in terms of satisfaction were found to achieve superior profitability compared to those rated lower, even when other factors are considered.
“These results are striking as they suggest online employee reviews can be used to predict a firm’s financial performance,” said Glassdoor’s Chief Economist, Dr Andrew Chamberlain. “There is a meaningful economic link between intangible company assets, such as employee satisfaction, and company performance in the United Kingdom.”
Dr. George Daskalakis, Finance Lecturer and Report Co-Author at Norwich Business School, highlighted the important role HR has in an organisation. “There is clear empirical evidence to suggest that employers should adopt a human-centred approach to running a business,” he said. “Our findings reinforce that even in tough or troubled periods, employee satisfaction can be a source of significant competitive advantage for firms.”
“Employees are an important resource and not just a homogeneous cost of production,” added Chamberlain. “Tending to employees is like looking after your garden: helping them grow by giving them nutrients and an optimal environment can ultimately improve your yield.”
Shared from HR Grapevine