I've only been an employee for about 33 years, but in that short time I have seen the benefits employees receive change significantly – usually for the better. They all cost more money for the employers, but was it worth it? New research provides some pretty solid evidence that is does.
The research study entitled ‘Does it pay to treat employees well? International evidence on the value of employee-friendly culture’ (click here), looked at 3,500 organisations in 43 countries from 2001 to 2104, so it is pretty comprehensive. A very good summary of the article by Matt Palmquist can be found here, and it notes that firms with a higher Employee-Friendly (EF) score had better results in terms of return on assets, return on equity, sales to asset ratios, as well as lower expenditures overall. It seems that treating employees well leads them to work harder, be efficient, and do more for the company.
These findings may come as no surprise, however they do confirm that the actions being taken by companies like Google and Yahoo etc. in providing significant benefits for employees does provide a financial pay-off. So if you want to earn more, invest more in your employees! To find out more ways that the Avondale Business School (ABS) can help your organisation, simply email [email protected], or phone 02 49802168.