The evidence - investing in people works!

Everyone deserves to enjoy work. Building and maintaining a culture with a positive employee experience is not only the right way to run a business, ultimately it's the most profitable.

Numerous studies show that organisations with strong capabilities in engagement and other people-focused areas such as HR strategy, planning and analytics, show significantly better financial performance than companies which are weaker in those areas.

Independent research on Great Place to Work data shows:

  • Best Workplaces™ outperform the market by 2-3% a year (1)
  • The growth in share prices of companies on the Standard & Poors 500 that are ranked Best Workplaces™ over a ten-year period was 16.4% compared with 4.12% for other companies on the market. This period included the 2008 global economic crash, from which Best Workplaces™ recovered their value in just over a year compared with just over three years for unranked companies. (2)
  • Preliminary research by the Human Capital Management Institute shows that for every 1% increase in engagement scores (as measured by the Trust Index), Best Workplaces™ enjoyed returns of between £75,000 and £1,000,000, depending on the level of investment and size of organisation.
  • Values-driven organisations outperform their peers. Research by the University of Chicago shows there is a positive relationship between a culture of strong values (‘high integrity’), as perceived by employees, and organisational performance.  Organisations with ‘high integrity’ also have higher levels of customer satisfaction. Conversely, there is no relationship between an organisation publicising its values and its financial performance. Having values does not mean that people will live by them. (3)

 1.  Prof. Alex Edmans, London Business School, Employee Satisfaction and Firm Value, 2014

2. Barrett, R. 2013. The values-driven organisation: unleashing human potential for performance and profit, Routledge.

3. Guiso, Luigi and Sapienza, Paola and Zingales, Luigi, Chicago University,The Value of Corporate Culture  (2013).

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