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Mike Hohnen

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Happy workers, Higher shares

April 21, 2016By Mike Hohnen

A growing body of evidence points to the financial benefits of superior human capital management practices. Russell Investment Group has tracked the stock price performance of publicly quoted companies on Fortune’s 100-best list for several years, and its findings are persuasive. Someone who invested equal dollar amounts at the beginning of 2005 in the stock of publicly traded companies on the list would have ended the year up 12 percent, versus 4.93 percent for the Standard & Poor’s 500-stock index.

Over the longer term, the link between a high-quality working environment and stock market success is even more compelling. Russell found that the 100-best portfolio, adjusted annually to reflect changes to the list from 1998 to 2005, provided an annualized return of 15 percent, versus 5 percent for the S&P 500.

European companies were also scrutinized to see if there was a correlation between good employment practices and a consistent margin of outperformance in the stock price. Russell showed that if an individual had invested £100, or $175, over five years in the publicly traded companies on the 2005 list of the best workplaces in Britain, this investment would have produced nearly double the return on investment than the FTSE all-share cumulative index, or £157.48 versus £83.48.

“Companies that devote resources to their human capital have a competitive advantage as a result of the high trust relationships between employees and management,” said Ann Watson, head of human resources at Russell. “This advantage manifests itself in higher levels of cooperation, greater commitment, lower employee turnover and improved customer support.”

IHT

Filed Under: Training & Development

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“The personal coaching sessions develop the perspectives of my thoughts. Input from research and the valuable personal experience from Mike gives me the confidence to take actions. The quality conversations we have energize me and help me a lot in my leadership challenges.” – Annika Vilen

“Mike’s coaching is very “hands on” and he pushes you gently but firmly further than you imagine possible, provides you with relevant tools – and at the same time keeps the motivation and personal drive in focus, which enables you to continue your development even after your coaching sessions have determined..” – Stine Kold CEO

“The sessions have given me the capacity to take much wider perspectives — to focus on what makes a difference, as well as being closer to my employees. I highly recommend this training and personal coaching for all the information, wisdom and expertise Mike brings.” – Alex BouleauHead of Highways and Airport, COWI

I have used Mike for the past ten years in coaching and training my management teams to reach the highest level of service and obtain the best leadership skills – and it works. – Dorte Gleie Managing Director SSP Copenhagen

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