by admin
September 27th, 2013

None of us want to ever underestimate the importance of corporate culture and the impact of employee satisfaction on performance. It is not just window dressing. A study by Professor Alex Edmans at London Business School found that when a company makes it onto the Fortune 100 Best Companies to Work For list, it generates 3.5% higher stock returns per year compared to its peers.

To be exact, it found that companies listed in the “100 Best Companies to Work For in America” generated 2.3% to 3.8% higher stock returns per year than their peers from 1984 through 2011. Management journal, strategy + business  says this about this effect of employee satisfaction,”There is money to be made from employee satisfaction. Let’s all get rich and happy, but not necessarily in that order.” I might have to argue with that but anyhow…here are the facts from the research. A great stat for demonstrating that it pays to build a terrific culture:

The results clearly point out that job satisfaction is beneficial for firm value and ultimately, reputation.

Read about it here.

Dr. Leslie Gaines-Ross is chief reputation strategist at Weber Shandwick. This article first appeared on her blog ReputationXchange

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