I find the below quite interesting. Certainly matches my experience in the trenches. Happy staff are far more productive.
Controlling for other determinants of stock returns (market performance, industry performance, firm characteristics, and risk), I find that the best companies outperform by 2-3 per cent per year over a 26-year period from 1984–2009, which is highly statistically significant.
The result has three main implications.
First, employee satisfaction is beneficial for firm value, consistent with new human relations theories.
Second, the market does not seem to recognise this link.