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Happy Employees = Higher Stock Prices?

Companies with happier employees tend to have higher stock prices, according to an interesting report by Glassdoor Inc., which was featured in The Wall Street Journal.

Glassdoor, a website that allows employees to anonymously review their employers, uses that data to create a list of the best places to work. Andrew Chamberlain, the company’s chief economist, compared the rankings of companies by their employees to that company’s stock price. According to the article, since 2008, the S&P 500 has featured returns of 121 percent, but companies ranked well on Glassdoor have seen returns of 218.5 percent.

The article includes Chamberlain’s theories about why higher morale could equate to higher value. It’s a good read, check it out here.

One Comment Post a comment
  1. Ernest Welker #

    I urge all readers to go to referenced article, as the content there gives a more nuanced account of the findings than evident here. By coincidence I received yesterday from McKinsey & Company the article “The real business of business,” which includes comments on employee work environment as one of many aspects of business success or failure. Here’s the address: http://www.mckinsey.com/insights/corporate_finance/the_real_business_of_business?cid=other-eml-alt-mip-mck-oth-1503.

    Like

    March 17, 2015

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