The Unsentimental Case for Sentiment
Let’s be brutally honest. As an investor, you’re not necessarily paid to care about whether Brenda in accounts enjoys her job. You’re paid to seek returns. But what if the two are inextricably linked? The data suggests they are. Companies with genuinely engaged employees, the sort who don’t dread Monday mornings, apparently deliver 23% higher profitability. They are also, on average, 18% more productive.
I think the logic is almost insultingly straightforward. Happy people tend not to leave. This slashes the enormous, often hidden, costs of constantly having to recruit and train new staff. They work with more purpose, which boosts output. They come up with better ideas, which drives innovation. And they are nicer to customers, which, surprise surprise, makes customers want to come back. It’s not rocket science, it’s just good business.