Results

Research is ubiquitous showing that organizations with engaged employees have higher retention, productivity, customer satisfaction, innovation rates, and performance. Below is a sampling of some compelling research.

The economics of well-being:

According to the 2010 Gallup Consulting Report entitled, The Economics of Well-being:

  • Compared with employees who are struggling, thriving employees have 41% lower health-related costs to the employer, a difference of $2,993 per person. For every 10,000 employees, this represents a difference of nearly $30 million.
  • The cost of turnover per person with thriving overall well-being is 35% lower than those who are struggling, or $1,948 less per person. For every 10,000 employees, this represents $19.5 million.

The science of happiness and engagement within organizations:

  • Study by the Ross School of Business, Center for Positive Organizational Scholarship: People who fit their definition of “thriving” (ie: employees who are not just satisfied and productive but also engaged in creating the future) displayed:
    o   16% better overall performance
    o   125% less burnout
    o   32% more commitment to their organization
    o   46% more satisfaction with their jobs
  • Study by the iOpener Institute: Results from polling 3,000 respondent in 79 countries showed that the happiest employees:
    o   Feel 155% more strongly that they are achieving their potential
    o   Are 108% more engaged
    o   Are 50% more productive
    o   Believe 116% more strongly that they achieve their work goals
    o   Took 66% less sick leave
    o   Spend 40% more time focused on task
    o   Feel 129% more confident raising issues and ideas
    o   Are 58% more likely to go out of the way to help their colleagues
  • According to the Society for Human Resource Management (SHRM) and Families & Work Institute: When employees have a high degree of control over their life and work, they are almost twice as likely stay in their current jobs (79% vs 44%) and four times more highly engaged at work (43% vs 11%). Also, 97% of HR professionals say productivity is the same or better with flexible work.

Employee satisfaction and long-run stock returns:

  • A 2010 University of Pennsylvania study concluded that employee satisfaction is positively correlated with shareholder returns, showing that a value-weighted portfolio of the "100 Best Companies to Work For in America" returned 2.1% above industry benchmarks from 1984-2009. The Best Companies also exhibited significantly more positive earnings surprises and announcement returns.
  • A new white paper entitled "Linking Human Capital to Business Performance" by Human Capital Management Institute (HCMI) shows evidence that human capital metrics can predict stock price changes. Over 22,000 companies were analyzed and six human capital metrics were tested using public company data from 1996 to 2011. A key finding is that a 10% increase in selected human capital metrics is associated with stock price gains ranging from 3%–19%.