Companies with a reputation for strong employee engagement and creating a happy workplace generate good publicity and cachet for their chief executives. But these companies are finding that what makes a great employer can also lead to business success.
In fact, the link between employee attitudes and business performance has been known for decades. A series of influential experiments from the 1930s, known as the Hawthorne studies, showed the impact of improved workplace environments on overall factory outputs. One finding was that reducing the working day by half an hour saw productivity improve.
Later, James Worthy, a sociologist-turned-executive, wrote in 1950 of increased autonomy for employees leading to improved morale and productivity.
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