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Current DateTime: 11:23:44 25 Nov 2009
LinksList Documentid: 30111251
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Do Happy Employees Increase Shareholder Value?
Published: Tuesday, 22 Sep 2009 | 2:25 PM ET
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Working Mother Magazine unveiled today its list of the 100 Best Companies that support working families, and as more companies realize the benefits of employees' satisfaction, do shareholders gain from it?

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Based on a 550-question survey, Working Mother Magazine rated a pool of companies on a wide range of benefits offered to employees.  This year, the magazine focused on measuring the impact of the economic slowdown on health-care spending, childcare and work-life arrangements.

Among some of this year's findings, the survey revealed that despite the recession, about 93% of the companies included on the list managed to maintain or even increase budgets for employee assistance programs and flextime schedules.

But we wanted to know, do happy employees benefit the shareholder? Do those additional costs taken by companies to keep their employees happy translate into higher consumer value in the long-term?

"Companies that treat women and employees as irreplaceable assets (i.e., invest in them) understand a very simple and critical truth - an organization is a sum total of their people not their processes.  As a result, these companies get a higher return on investment and overall shareholder value," explains Lior Arussy, CEO of Strativity, a customer experience and employee engagement consulting firm.

And while employee satisfaction is not the only factor affecting the performance of a company's stock value, many investors look at this metric for clues related to productivity, customer service, and other variables that directly impact a company's performance, brand loyalty, and ultimately consumer value. 

The table below provides a sample of this year's Working Mother 100 Best Companies, and how their shares performed since the end of the survey and year-to-date.


  2009 Working Mother Best Companies
SYMBOLCOMPANY NAMELAST% CHG. SINCE 3/6/09YTD % CHG.
ABTAbbott Laboratories46.8-0.3-12.4
ALLAllstate Corp30.1106.9-8.1
AEPAmerican Elec Pwr Co Inc31.627.5-4.9
AXPAmerican Express Co34.1232.783.9
TWXTime Warner Inc30.435.636.3
AZNAstraZeneca PLC46.351.012.8
ADPAutomatic Data Processing39.318.1-0.2
BACBank of America Corp17.7462.125.3
DISCADiscovery Communications29.696.0109.3
DDDuPont34.0101.434.3
LLYEli Lilly and Co32.716.9-18.8
FHNFirst Horizon National13.783.137.4
FREFreddie Mac2.1486.1187.7
GEGeneral Electric Co17.1142.45.7
GISGeneral Mills Inc61.119.90.6
GSKGlaxoSmithKline PLC39.637.86.3
GSGoldman Sachs Group Inc183.8143.0117.8
COPConocoPhillips46.732.2-9.8
CSCOCisco Systems Inc23.465.143.7
CCitigroup Inc4.6350.5-30.8
CLColgate Palmolive Co75.465.610.0
CSCredit Suisse Group56.5180.999.6
DELLDell Inc15.888.654.2
DBDeutsche Bank AG77.4231.590.1
DEODiageo PLC64.048.012.8
HPQHewlett-Packard Co47.174.529.7
IBMIntl. Business Machines121.741.844.6
INTCIntel Corp19.658.333.9
JNJJohnson and Johnson60.826.81.7
JPMJPMorgan Chase and Co45.4185.143.9
KKellogg Co48.430.310.4
KFTKraft Foods Inc26.422.2-1.6
MARMarriott International Inc27.7121.043.5
MAMasterCard Inc222.956.555.9
MRKMerck & Co Inc31.638.83.8
METMetLife Inc39.0219.412.0
MSFTMicrosoft Corp25.567.031.2
MSMorgan Stanley32.689.5102.9
NTRSNorthern Trust58.623.712.5
NVSNovartis49.241.5-1.2
PSOPearson12.840.834.0
PFEPfizer Inc16.731.4-5.5
PNCPNC Financial47.1154.3-3.9
PFGPrincipal Financial27.7355.422.6
PGProcter & Gamble Co57.124.9-7.6
PRUPrudential Financial Inc52.3359.272.6
SNYSanofi-Aventis37.851.117.6
TXNTexas Instruments Inc24.063.254.8
MHPMcGraw-Hill Companies26.751.515.0
VZVerizon Communications29.47.8-13.3
WLPWellpoint Inc53.771.027.5
Average % Gain106.529.8
S&P 50028.118.5


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