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Companies with happier employees outperform their peers

Fortune via Yahoo – “Corporate America is changing. Look no further than the Business Roundtable’s redefined statement of purpose for corporations. Instead of putting shareholders’ interest alone first, its members have agreed to prioritize the interest of various stakeholders, such as employees. So how does doubling down on employees affect the bottom line? Pretty well, according to our research. Fortune teamed up with Thrive Global, SAP SuccessFactors, and Qualtrics to build the Thrive XM Index*, a ranking of companies with the best employee well being. To create the index, we surveyed a sample of more than 20,000 full-time U.S. employees from over 900 companies. We asked them about everything: work-life balance, career advancement, mental health, company policies. From this massive survey, Thrive Global researchers used a scoring algorithm to generate the score for companies. Then they looked at the highest-ranked companies on the index to see if their better employee experiences translated into better financial results.  The top-ranked Thrive XM Index companies—even when factoring in industry—saw their stock gains outperform those of their peers. What’s more, the top 10% of Thrive XM Index companies saw their return on equity climb 27.2% in the second quarter of 2020…”

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