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Employee Wellbeing, Productivity and Firm Performance

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  • Jan-Emmanuel De Neve
  • Christian Krekel
  • George Ward

Abstract

Does higher employee wellbeing lead to higher productivity, and, ultimately, to tangible benefits to the bottom line of businesses? We survey the evidence and study this question in a meta-analysis of 339 independent research studies, including the wellbeing of 1,882,131 employees and the performance of 82,248 business units, originating from 230 independent organisations across 49 industries in the Gallup client database. We find a significant, strong positive correlation between employees' satisfaction with their company and employee productivity and customer loyalty, and a strong negative correlation with staff turnover. Ultimately, higher wellbeing at work is positively correlated with more business-unit level profitability.

Suggested Citation

  • Jan-Emmanuel De Neve & Christian Krekel & George Ward, 2019. "Employee Wellbeing, Productivity and Firm Performance," CEP Discussion Papers dp1605, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1605
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    Cited by:

    1. Fabio Berton & Stefano Dughera & Andrea Ricci, 2019. "Unions and Firms' Investments. A Unified View," LABORatorio R. Revelli Working Papers Series 168, LABORatorio R. Revelli, Centre for Employment Studies.

    More about this item

    Keywords

    employee satisfaction; engagement; employee productivity; firm performance; wellbeing; meta-analysis;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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