Performance Management Blog

Enthusiastic People Accomplish MORE

This is NOT rocket science, but the general reactions of so many make it seem like this should be a Big Surprise:

In places where there is high morale, there is higher performance.

This from Sirota Consulting and their research:

Crazy!  Ridiculous!  But in fact, we found that high-morale companies outperformed their industry competitors in 2012 by 368% when considering year-over-year stock market returns.  We discovered this when working on the second edition of our book, The Enthusiastic Employee.More specifically, we found that companies with high morale (those with scores at the 75th percentile or higher who ask “overall satisfaction with their company” on their annual employee attitude surveys) had stronger year-over-year stock performance than their industry counterparts.  These high-morale companies averaged a 15.1% improvement in their stock price, while their matched industry comparisons averaged only a 4.1% year-over-year improvement, a difference of 11 percentage points or 368%!  Moderate-morale companies (companies scoring between the 25th and 75th percentiles on employee attitude surveys) matched their industry counterparts (only a 0.8 percentage point difference), and the low-morale companies were 166% (or 13 percentage points) lower than their industry counterparts.

Are these results a fluke, a chance occurrence in this particular period? Well, we have been able to replicate the results every year we have analyzed employee morale measures against companies’ stock market performance.

They expand on the numbers and their conclusions in their blog post, which you can find here.

We feel the same way, and do not think it is real rocket science to figure out how to establish a positive work culture.

Square Wheels image: Celebration key to involving me

It is about innovation and improvement, celebration of accomplishments, and a continued focus on how to better compete and perform in the marketplace. It is about people — it is always about people!

As they said,

“In these companies, relationships between management and employees are based on mutual obligations grounded in performance; high levels of trust, transparency and collaboration; and shared rewards.  In both good and difficult business conditions, the employee enthusiasm generated by this kind of corporate culture is a huge factor in their business success.”

At PMC, we sell simple tools to involve and engage, to enable motivation and innovation and workplace improvement,

For the FUN of It!

square wheels author

Dr. Scott Simmerman is a designer of team building games and organization improvement tools. Managing Partner of Performance Management Company since 1984, he is an experienced presenter and consultant.

Connect with Scott on Google+ – you can reach Scott at scott@squarewheels.com

Follow Scott’s posts on Pinterest: pinterest.com/scottsimmerman/
Scott’s blog on Poems and Quips on Workplace Improvement is here.

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Dr. Scott Simmerman

Dr. Scott Simmerman is a designer of team building games and organization improvement tools. Managing Partner of Performance Management Company since 1984, he is an experienced presenter and consultant, earning CPT and CPF credentials. -- You can reach Scott at scott@squarewheels.com and a detailed profile is here: https://www.linkedin.com/in/scottsimmerman/ -- Scott is the original designer of The Search for The Lost Dutchman's Gold Mine teambuilding game and the Square Wheels® images for organizational development.

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