Happy Employees = Better ROI!

It’s always better for business to have a happier workforce. When employees are happy, they stay more motivated towards driving their companies’ growth, and will put in their best at work. Now, this may seem quite obvious, but for some reason, many companies miss this point and fail to keep their employees happy. As companies race ahead of their competition in order to rake in more revenues, some of them end up neglecting their employees and their revenue growth becomes anything but sustainable as a result.

Happy employees makes a better companyAccording to a new book by Dr. Noelle Nelson titled “Make More Money by Making your Employees Happy”, employees that are happy with their work will believe more in their companies’ interest and work towards their growth. The book discusses findings from a survey conducted by the former Jackson Organization, now acquired by Healthstream, Inc. The survey results show how companies that appreciate employee value rake in over three times more return on equity and assets when compared with firms that fail to do so.

The average stock price of Fortune’s ‘100 Best Companies to Work For’ list registered a 14 percent increase from 1998 to 2005, compared to the overall market’s average stock price, which grew by only 6 percent during the same period.

But money is not the primary way to keep employees happy, which is one of the biggest concerns businesses have. Even though a survey from 24 Seven reveals how majority of employees (66 percent) expected raises in 2012, Dr. Nelson’s book states that this may not be entirely necessary. According to this book, even if business owners can keep their promises towards their employees and treat them with compassion, it gives them a reason to be happy. It can be anything – from promising a raise to promising more resources and assistance to make them more efficient, but make it happen.

The book features many real-life examples taken from across industries to illustrate this point. Some of the noteworthy examples include:

  • How employee productivity levels registered an increase when Paul O’Neil took charge of Alcoa in 1987 and focused on improving worker safety and bringing down the accident rates in the aluminum production company.
  • How Apple’s CEO Tim Cook shut down offices for Thanksgiving week for three days as a paid vacation to reward employees for their hard work.

Numerous surveys in recent times have highlighted the fact that employees have highest regard for job satisfaction, ranking it even over compensation. It’s one of the most important reasons why employees would want to stay in their present jobs. However, in current times when 90 percent of employees are willing to look for a change, it is high time organizations make an effort to make their employees happier and hang on to them.

This becomes even more important when it comes to retaining top talent, as HR departments the world over have realized, that it’s the little things that count in building employee loyalty. For example, as per the feedback that we have received for our Corporate Relocation Services, employees of a company that takes care of their relocation needs have found it easier to adjust to the new environment. This in turn has helped HR departments inspire greater loyalty in their employees.

At the end of the day, it’s happier employees that are more efficient and stick to the organization in the long run. From an organizational point of view making employees happy ensures good ROI.

To conclude here is an info-graphic

Happy Employees Better ROI


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