Employee wellbeing, productivity and firm performance

Jan-Emmanuel De Neve, Christian Krekel and George Ward

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: Does higher employee wellbeing lead to higher productivity, and, ultimately, to tangible benefits to the bottom line of businesses? We survey the evidence and study this question in a meta-analysis of 339 independent research studies, including the wellbeing of 1,882,131 employees and the performance of 82,248 business units, originating from 230 independent organisations across 49 industries in the Gallup client database. We find a significant, strong positive correlation between employees' satisfaction with their company and employee productivity and customer loyalty, and a strong negative correlation with staff turnover. Ultimately, higher wellbeing at work is positively correlated with more business-unit level profitability.

Keywords: employee satisfaction; engagement; employee productivity; firm performance; wellbeing; meta-analysis (search for similar items in EconPapers)
JEL-codes: I31 J24 (search for similar items in EconPapers)
Date: 2019-03-15
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-cse, nep-eff, nep-hap, nep-hrm and nep-lma
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Citations: View citations in EconPapers (37)

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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1605

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