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CEP discussion paper
Employee wellbeing, productivity and firm performance
Jan-Emmanuel De Neve, Christian Krekel and George Ward
March 2019
Paper No' CEPDP1605:
Full Paper (pdf)

JEL Classification: I31; J24

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

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.