Do happy workers equate to higher
profits? If we believe in economic
karma, as the USA
Today article calls it,
benevolent employers should see better productivity and earnings. In fact, as Fortune Magazine’s 2013
list of the “100
Best Companies to Work For” shows, companies who treat their employers well
do indeed see their stocks prosper.
Google, ranked #1 on this year’s
list, has seen its stock soar over 600% since its inception in 2004. And Google employees have a lot to be happy
about; perks offered include college reimbursement plans, legal aid, 100%
health-care coverage, onsite fitness centers and childcare facilities, and even
subsidized massages.
An effect of providing all these
benefits? Reduced employee
turnover. And in turn, by
minimizing the need for continual retraining and hiring headhunters, for
example, the employees who stay on board help their company save money and
increase earnings.
However, a good benefits package
is not the only contributor to employee retention. Julie Gebauer, managing director for talent and rewards at Towers
Watson, explains the key:
The data
strongly support the fact that organizations that focus on the engagement of
their employees deliver stronger performance…It’s not just making them happy—that’s
not a business issue. Engagement is.
The
engaged employee, an employee who exhibits enthusiasm for work,
commitment, organizational pride, and alignment with organizational goals, is
more likely to stay with their company.
Moreover, as Gebauer notes regarding employee treatment: “What makes the
biggest impacts are things that don’t have significant costs.”
