• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
No Result
View All Result
Home Business and Economics Business

Pass this to your boss: Study finds staff satisfaction affects company performance

Companies with high levels of staff satisfaction perform better financially, according to new research from the University of East Anglia (UEA). The study examined the effect of staff satisfaction on corporate performance using employees’ online reviews of where they work. Writing in the journal Economic Letters, the researchers from Norwich Business School say that firms […]

Jack Peat by Jack Peat
2017-11-15 12:49
in Business, News
FacebookTwitterLinkedinEmailWhatsapp

Companies with high levels of staff satisfaction perform better financially, according to new research from the University of East Anglia (UEA).

The study examined the effect of staff satisfaction on corporate performance using employees’ online reviews of where they work.

Writing in the journal Economic Letters, the researchers from Norwich Business School say that firms rated highly by their current employees in terms of satisfaction achieve greater financial performance compared to firms characterised by low levels of employee satisfaction.

They add that this association between employee satisfaction and corporate performance indicates that employees’ online reviews are good predictors of a firm’s financial results, and so of value–relevance for investors.

However, they find that positive employee satisfaction is not fully reflected in equity prices on the stock market, as an analysis using a trading strategy based on investing in firms characterised by high levels of employee satisfaction achieved statistically and economically significant abnormal returns.

Lead author Efthymia Symitsi said the findings have significant implications for both managers and investors: “Increasingly researchers from a wide range of disciplines argue that in the current knowledge-based economy, employees are a particularly valuable organisational asset as they can contribute to firm value through innovation and customer relationships.”

RelatedPosts

Sweden joins Finland in seeking Nato membership as Russia moves nuclear missiles towards Finnish border

Poll shows Ukraine war means govt should halt plans to repeal human rights act

Brexit bouncer: Govt urged to ‘act fast’ to remedy door staff shortage

Parody of Minister calling for us to get a better job goes viral as it’s too real

“Therefore, ensuring their wellbeing and general satisfaction should be a major concern for businesses. This human-centred view of the firm is in direct contrast to the traditional view, according to which employees perform unskilled tasks and, therefore, are expendable commodities. Naturally, which of the two views is the appropriate one is an issue of the utmost importance for both managers and investors.”

The study, published online this month, analysed more than 326,000 employee ratings of 313 US public firms from 2009-2016. The sample only included firms that had more than 500 reviews during the period studied, with quarterly financial data also collected for each firm.

Co-author Dr George Daskalakis said: “Our results provide empirical support for a human-centred view of the firm. Interestingly, however, it seems that this is not wholly recognised by equity investors, providing further evidence that intangibles are not fully priced in the stock market and, most importantly, that this is not due to lack of information, since we measure employee satisfaction on the basis of freely available online reviews.

“The reason we find abnormal portfolio returns and, therefore, conclude that this intangible is not fully priced in the stock market, could be because equity investors don’t believe that employee satisfaction is value-relevant for firms or perhaps because it is difficult to actually quantify its value.”

Previous studies investigating the effect of employee satisfaction on corporate performance are relatively limited and commonly based on the ‘100 Best Companies to Work for in America’ list, published annually by Fortune magazine.

However, to potentially be included in the list a firm needs to be certified for a fee first by the California-based Great Place to Work Institute.

Therefore, only firms that have, or believe themselves to have, significant levels of employee satisfaction have an incentive to pay this fee and get certified. The authors argue that this can result in any conclusions drawn being driven by self-selection bias.

To avoid this possibility, this study based its analysis on freely available online reviews that employees posted on job and recruiting site Glassdoor.

RELATED 

 

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Oliver Dowden rinsed for ‘astoundingly embarrassing’ speech hailing ‘privet hedges of freedom’

Trump Backs Brexit

Jean-Claude Juncker brands David Cameron “one of the great destroyers of modern times”

Kwarteng says he ‘feels no shame’ over Paterson… hours before U-turn

Gallery: Making piki bread with the Native​ American Hopi tribe of Arizona

Tsunami of red tape threatens to put British businesses on the brink

Remainer claimed he had passport taken away by immigration officers for “B*llocks to Brexit” badge

Advertising: we’re not Paying Attention to it

Watch: Gavin Williamson’s anti-bullying video released hours before Priti Patel ruling

The world’s second oldest football club may finally get a new stadium

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.