That is kinda obvious.
Employee happiness and business success are linked
141–150 of 228 posts
Re: Employee happiness and business success are linked
#142According to Gallup, highly experienced teams can experience a 20% lift in productivity.
If an employee’s output is X, you can take this to (X)*120% by focusing on employee happiness. To put this in perspective, if a 5 member team experienced a 20% increase in productivity, there will be enough additional output that a sixth employee might contribute, but without the additional pay.
In this scenario, an organisation’s savings can be connected to 1 employee’s salary in a 5 member team. Also, take into consideration the additional revenue generated.
If a 500 employee company saw a 20% boost in productivity, it will mean an output of 600 employees at the hiring cost of 500.
Re: Employee happiness and business success are linked
#143The connection to profitability by industry is interesting:
manufacturing 0.42
finance 0.22
retail 0.14
services 0.10
Re: Employee happiness and business success are linked
#144Re: Employee happiness and business success are linked
#145You might be surprised how many otherwise skilled and well meaning people would argue against this in their own companies, especially prevalent in the bay area.
Re: Employee happiness and business success are linked
#146The connection to profitability by industry is interesting: manufacturing 0.42 finance 0.22 retail 0.14 services 0.10 Correlation coefficient It would be interesting to see how it correlates with value added. I hypothesize that low in value added businesses like retail or manual assembly in manufacturing, you can't increase profits radically by increasing worker satisfaction. In higher value added sectors like like a…
You are right. These sectors have higher impacts on profitability by increasing employee engagement. Computer Software, Internet, Information Technology and Services, Marketing and Advertising,
Health, Wellness and Fitness
Re: Employee happiness and business success are linked
#147I've seen these arguments repeatedly, yet I only see this mattering to those companies where employees have a relative level of power and choice (e.g. non-game industry programmers, etc). Elsewhere, the attitude appears to have remained: "use them as much as possible". Consider assistant managers at your local chain store. Pick a chain! Outside of a handful of companies that are well noted for their bucking of the tr…
I agree that there are many companies that ignore this correlation, but I'm not convinced those companies are making the most rational choice. If Burger King significantly increased the salary of their workers or otherwise found ways to improve their morale, would it benefit Burger King in the long run? I tend to suspect so, but it would be hard to prove. The burger joints known for taking care of their people are al…
>If Burger King significantly increased the salary of their workers or otherwise found ways to improve their morale, would it benefit Burger King in the long run? I tend to suspect so, but it would be hard to prove.
It would not benefit Burger King as its clientele’s main goal is purchasing at the lowest price and they will happily go to McDonalds if prices went up. Not all businesses have the luxury of selling to people willing to spend more than rock bottom, and you can see that in most cities, only one or two areas where the upper middle class live will have the business that pay more than the minimum.
Re: Employee happiness and business success are linked
#148This seems intuitively obvious, and I say this as a former business owner. However, the causality is backwards (as I’d expect from economists).
If things are going well, it usually means you have a monopoly of some kind, which means high margins, which means that it’s easy and important to keep your people happy (including stimulating/challenging them with non-rote work).
It’s when things go south that it all starts to get ugly for everyone.
The causality likely goes the other direction: successful businesses can afford to create better employee environments. If your business sucks, you’ll likely run out of money if you try to first make employees happy and then let that happiness iterate you to success.
Re: Employee happiness and business success are linked
#149Due to self-actualization in https://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs#...
Re: Employee happiness and business success are linked
#150They did look at causation: "the authors cite studies of changes within individual firms and organisations which seem to show that improvements in employee morale precede gains in productivity, rather than the other way round." Many of us understand the other causation arrow (corporate unsuccess leads to unhappiness!)
A preceding B does not imply that A causes B, it only implies that B doesn't cause A. Which doesn't really reduce the world of possible causal relationships by all that much, since there may be any number of other factors that weren't considered. For example, it could just as easily be the case that adjustments to dysfunctional aspects of the company's internal politics improve both morale and productivity, but the m…
Yeah, confounding* variable C causes happiness and profitability (A and B).