The AMA Handbook of Leadership

By Marshall Goldsmith; John Baldoni et al. | Go to book overview

CHAPTER 11

Create Awareness; Create Change
Judith M. BardwickIt's very strange: In the roughly four years that I've been speaking to management about the hundreds of studies clearly demonstrating that high levels of employee commitment and engagement predict financial success, I've consistently found that virtually no one in the audience has heard of these studies. So, here is a small sample of data supporting the idea that when employees feel positively about the place where they work and the work that they do, tangible success is achieved, as measured by financial results:
Companies consistently rated as the “Best to Work For” are run by people who hold two goals in mind simultaneously: (1) to achieve their business targets and (2) to uphold the welfare of their employees.1 These organizations have higher market value, growth, return on assets, and return to shareholders than do peer organizations that don't value and involve employees.
The worldwide consulting firm Watson Wyatt administered surveys of the Human Capital Index (HCI) to 51 organizations in the United States and Europe.2 When the HCI scores were compared with each corporation's five-year total return to shareholders, companies with a low HCI score averaged a 21 percent total return, companies with medium HCI scores achieved a 39 percent total return, and those with high scores had a 64 percent return.

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