Does Employee Satisfaction Improve Company Value? It Depends...

KEY CONCEPT Recent studies of U.S. companies have shown that increased employee satisfaction is linked to higher value for the firm. But what about companies in other countries? A new study shows that the U.S. results are replicated only in countries that have levels of labour flexibility (ease of hiring and firing) similar to the U.S. Companies in countries with low labour flexibility show a more limited benefit from employee satisfaction.