Healthier companies provide superior results

Sunday, June 16, 2013

It makes perfect sense that companies with clear direction and a sense of connection between employees come out ahead, generating a positive feedback loop as they satisfy customers and increase loyalty, propelling themselves onward.

To determine whether this loop translated into superior financial performance, Doug Claffey, CEO of WorkplacesDynamics, developed the Top Workplaces Fund, a virtual portfolio of 42 public companies from around the country that have been named a Top Workplace at one of the 35 newspapers the survey firm partners with. Since the Top Workplaces Fund was established on Oct. 20, 2008, through Dec. 31, 2012, the virtual portfolio has outperformed the Standard & Poors’ 500 index by 48 percent, Claffey reports.

Chris Puto, Ph.D., dean of the Opus College of Business at the University of St. Thomas, said the well being of the company ties directly to the well being of workers on an individual level. “That is when you get the performance kick," he said. “I’m convinced that all else being equal, that higher engagement will absolutely outperform unengaged employees.”

Originally published: 06/16/2013, Star Tribune