Pushing employees to make more sales is no longer considered an effective way to increase business performance. Today, businesses have realized the key to growth is by investing in employees through — employee development and training programs. Companies that have focused on overall employee experience have better improvement with business performance metrics than those that don’t. For example, the stock prices for the Best Companies to Work for List from Fortune 100 increased by 14 percent per year between 1998 and 2005, while companies that weren’t on that list only saw an increase in stock price (on average) of six percent. Another study showed that companies that improved their employee-written ratings are significantly outperforming companies that have falling ratings.
It’s clear there’s a definite connection between investing in the overall employee experience and increasing revenue and stock price, which is something MSI Certified can help with. Consider the facts found here for further proof of this connection.
Companies that were focused on employee experience usually see faster and stronger revenue growth. Also, recognition as being a great place to work or for having a strong level of engagement has a positive impact on overall business performance. One example of this is with Campbell Soup. The company prioritized employee experience and increased the stock price by approximately 30 percent in just 10 years during a period when other stocks lost up to 10 percent.
Another example of a company that focuses on employees and is constantly found on the list of the best places to work is with Workday, a cloud solutions company. It has been featured as one of the Best Workplaces for Millennials for 2019 and emphasizes collaboration and personalization while creating an inclusive yet challenging work environment. The company was first featured on a “best places to work list” in 2013, at which time the stock price remained around the $53 mark. After several years of being recognized for being a great workplace and having a top CEO, the company’s stock price has surged to approximately $161 per share.
The computer giant HP has also found itself on the Best Places to Work List from Glassdoor. This was a first-time occurrence for the company in 2019 and is attributed to its renewed focus and emphasis on employee engagement. This focus is spurred by an increased opportunity for growth and training, along with an array of new benefits, such as employee healthcare centers. The stock price for HP was approximately $10 in 2016 and hit a high in the latter part of 2018 at $26 per share.
Companies looking for effective and proven ways to increase overall performance, success, and growth must begin to put employees' needs and wants first. Doing so, as proven by the examples found here, can propel any business into substantial growth that may not be possible otherwise. Also, with recognition being given for companies focusing on these efforts, it’s clear that even up-and-coming businesses have an opportunity to shine and provide the workplace that modern employees are searching for and that have an employee-first mindset. Doing so benefits the workers and the owners, as the business is going to experience significant growth and success by taking this approach now and in the future.
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