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Another hypothesis that equally well explains the data: employees at successful companies tend to be happy because the rising tide lifts (almost) all boats. Com

Another hypothesis that equally well explains the data: employees at successful companies tend to be happy because the rising tide lifts (almost) all boats. Companies that are doing poorly will tend to look to cut staff, wages, and benefits, which could be a source of unhappiness. Etc. I don't really think the evidence presented here gives much reason to believe that seeking the well-being of your employees will do anything for the bottom line. OTOH, it's easy for me to believe that improving the top line will improve your employees' happiness.

nine_k 7y ago
My point is that you have to keep your key people content, else they will leave. During a downturn, you especially want your key engineers, best sales reps, most well-connected customer liaisons to stay around. If they leave, this will hit the bottom line, and getting a replacement will be expensive, or often impossible. This is a known way into oblivion [1]. There are booming industries where the boom mostly floats top executive boats, though. Ask an Uber driver, or an Amazon warehouse worker. [1]: https://steveblank.com/2009/12/21/the-elves-leave-middle-earth-%E2%80%93-soda%E2%80%99s-are-no-longer-free/ https://steveblank.com/2009/12/21/the-elves-leave-middle-ear...
- Jax2_Hannah 7y ago
  Hey I'm an Amazon warehouse worker, and while I would have to agree, I love the chances to climb to management or an actual career. I'm part of the career choice program which pays for 95% of my college tuition, fees, and books for an IT program (which I chose). The job is boring but not too difficult. I know others might say otherwise though.
  - nine_k 7y ago
    Great to know! Now you need the job more then the job needs you; eventually you may find yourself in a position where employers compete to have you in the team instead.
ergothus 7y ago
> Another hypothesis that equally well explains the data As noted in other comments, this DID check for causation and found employee happiness led the benefits, not the other way around.
- rightbyte 7y ago
  You can't check for causation unless you manipulate a subsample of the companies randomly. Article: "However, the authors cite studies of changes within individual firms and organisations which seem to show that improvements in employee morale precede gains in productivity, rather than the other way round." A theory could be that employers see the improvement in productivity before they are measureble by the methods employed and therefore are happier. E.g. bad processes are replaced which gives happier employees before the gains are evident.
  - asdfasgasdgasdg 7y ago
    Right. Sometimes you can eliminate obvious correlates, but it's quite difficult to eliminate all of them.

nine_k 7y ago

My point is that you have to keep your key people content, else they will leave. During a downturn, you especially want your key engineers, best sales reps, most well-connected customer liaisons to stay around. If they leave, this will hit the bottom line, and getting a replacement will be expensive, or often impossible. This is a known way into oblivion [1]. There are booming industries where the boom mostly floats top executive boats, though. Ask an Uber driver, or an Amazon warehouse worker. [1]: https://steveblank.com/2009/12/21/the-elves-leave-middle-earth-%E2%80%93-soda%E2%80%99s-are-no-longer-free/ https://steveblank.com/2009/12/21/the-elves-leave-middle-ear...

Jax2_Hannah 7y ago
Hey I'm an Amazon warehouse worker, and while I would have to agree, I love the chances to climb to management or an actual career. I'm part of the career choice program which pays for 95% of my college tuition, fees, and books for an IT program (which I chose). The job is boring but not too difficult. I know others might say otherwise though.
- nine_k 7y ago
  Great to know! Now you need the job more then the job needs you; eventually you may find yourself in a position where employers compete to have you in the team instead.

ergothus 7y ago

> Another hypothesis that equally well explains the data As noted in other comments, this DID check for causation and found employee happiness led the benefits, not the other way around.

rightbyte 7y ago
You can't check for causation unless you manipulate a subsample of the companies randomly. Article: "However, the authors cite studies of changes within individual firms and organisations which seem to show that improvements in employee morale precede gains in productivity, rather than the other way round." A theory could be that employers see the improvement in productivity before they are measureble by the methods employed and therefore are happier. E.g. bad processes are replaced which gives happier employees before the gains are evident.
- asdfasgasdgasdg 7y ago
  Right. Sometimes you can eliminate obvious correlates, but it's quite difficult to eliminate all of them.