High Performance Employees: Blog
Job Creation Cited as Socially Responsible Investment
In a recent study from Switzerland-based Pictet & Cie it is determined that job creation is a form of socially responsible investment. The study examines 1,677 companies in the MSCI World Index from 1997 to 2005, and compares employment statistics with financial performance. In a third-party article on the study, the research company is quoted as making the statement: "A sustainability analysis that focuses only on indicators that have a 'material' impact on the financial success of companies is incomplete and ultimately even obsolete, since it does nothing more than a standard financial analysis, namely to identify the most profitable companies...sustainable investment should allow for inclusion of criteria that are desirable from a purely sustainable point of view." At High Performance Employees, we agree, and believe it's not just 'socially responsible investing' to create the jobs themselves, but it is equally important to keep employees happy in those positions. Regardless of the number of jobs created by any given company - the social return of investing in employee satisfaction (and the relative management satisfaction!) is invaluable to both the company's own financial returns and the social return. Employees who are content on the job and happy in their workplace take that energy and enthusiasm with them out into their non-working daily lives. It would be interesting to see a study analyzing the relationship between employee satisfaction and financial performance. Because, no matter how many jobs a company creates - if the employees are unhappy and unmotivated at work, what are those jobs really worth?
© High Performance Employees 2006