Award-winning Management and Leadership training provider Happy Ltd has always known that happy workplaces lead to greater productivity and tangible business results.
Now, this new research published on the Happy Manifesto website, collated by Rian Doris, has shown the real benefits for organisations of all sectors.
Happy workplaces are more profitable, have higher share growth and lower costs.
In the most detailed econometric study to date, Alex Edmans, then at Wharton Business School at the University of Pennsylvania, analysed the result of investing in the companies listed in the Great Place to Work lists over the last 25 years.
He found a difference, compared to the stock market, of 3.5% a year. An investment which would have returned $100,000 in a tracker fund would have achieved $236,000 from investing in companies that focus on creating great workplaces and prioritise employee happiness. This is further evidence for the strong correlation between employee happiness and shareholder returns.
The lesson is clear: employee happiness is a strong predictor of long-term company performance.
“Happy workplaces can transform organisations. One of our telecom clients tells us that, since focusing on creating a happy workplace with Happy, their sales and profits are up and their share price has more than doubled over two years. It’s great to see that reflected in this new research by Rian,” said Henry Stewart, Founder and Chief Happiness Officer at Happy Ltd.
“Organisations that prioritise making their employees happy minimise turnover, maximise talent retention, reduce absenteeism and increase productivity; all of which can significantly reduce costs.”
This new research is available on Henry’s blog on the Happy Manifesto website.
Henry Stewart and Happy Ltd will be sharing their insights at LEARNING LIVE 2017. Henry will be joining the panel on 7th September at 11:30am" Creating the Right Workplace Environment to Encourage Learning. All LEARNING LIVE 2017 attendees will receive a free copy of Henry’s book, The Happy Manifesto, detailing the 10 principles to creating a happy and engaged workplace.