Ashish KothariMake flourishing your competitive edge

Why Investing in People Pays Off #shorts

11 Jul 2024 · 1 min

Watch on YouTube

0:53

Single-speaker YouTube short (by Ashish Kothari) arguing that investing in employee engagement and organizational happiness delivers material business value. Claims cited in the clip: happier organizations are ~20% more productive and 20+% more profitable; they show ~2x higher stock-market returns; research (referred to as Alex Edmonds at London Business School) finds ~2–3.5% higher shareholder returns year-over-year versus competitors, but only when measured over horizons longer than four years. The speaker positions organizational happiness as a long-term strategy capable of producing sustained outperformance (claims an "alpha" of 30–50% over the long term) by aligning people with execution.

Questions this video answers

20% more productive.

About 20+% more profitable.

2x higher stock-market returns (and cited research shows 2–3.5% higher shareholder returns year-over-year versus competitors).

Longer than a four-year horizon.

An alpha of 30 to 50% over the long term.

Chapters

We know that organizations that are happier are 20% more productive, 20 plus percent more profitable. They have 2x higher stock market returns. Alex Edmonds work in London Business school group causation 2 to 3.5% higher shareholder returns versus competitors year over year. It has to be over a longer than four year horizon. Organizational happiness is not a fix for short term, but long term. I think it can create a powerful strategy to create an alpha of 30 to 50% over the long term. I'm not sure of any other strategy. Truly a strategy that can actually deliver that level of performance while making everything else go better. Right? It's almost that lubricating wheel. Because we sometimes forget that what connects strategy to execution is people. And if people are engaged, people show up fully aligned and happy, they get higher performance.