(extract from Forbes.com)
I assume all businesses want happy employees. But seemingly more important to most businesses, unfortunately, is they would rather focus on larger profits. What if happy employees quantifiably translated into larger profits? Well, a new book by Dr. Noelle Nelson, “Make More Money by Making Your Employees Happy,” explains how they do.
“When employees feel that the company takes their interest to heart, then the employees will take company interests to heart,” says Dr. Nelson, a clinical psychologist, best selling author and business trial consultant. In her book, Dr. Nelson cites a study from the Jackson Organization, a survey research consultancy, which shows, “companies that effectively appreciate employee value enjoy a return on equity & assets more than triple that experienced by firms that don’t. When looking at Fortune’s ’100 Best Companies to Work For’ stock prices rose an average of 14% per year from 1998-2005, compared to 6% for the overall market.”
Of course, many business owners might think that employees need more money to be happy. But what business owners really need to do, says Dr. Nelson, is keep their promises and show compassion for their employees. So if you promised your employees a pay raise, give it to them. If you promised resources to help them be more efficient at their job, give it to them. Find what’s important to your employees and give it to them.