… Very interesting survey and in particular, the lengthy analysis and the impact on companies stocks. – Mouaz

“A new survey shows that firms with motivated employees outperform their peers. Invest your money where employees invest their emotion.

As you read this, at work, are you also Twittering, about to check your Gmail account and just minutes away from your latest Facebook update? If so you could be a prime example of an unmotivated employee. The good news is that this isn’t all your fault: Your firm’s chief executive needs to make your motivation their concern. Why? Because the evidence is coming in fast that the more intrinsically motivated employees are the better returns there are for shareholders.

Yes, that’s right, the more motivated employees are, the better such firm’s shareholders did. The flip side of this is that investors need to find those firms that motivate employees. The academic muscle backing this idea comes to us via a study jointly released by the Workplace Research Foundation and the University of Michigan titled: “The National Benchmark Study: Employee Motivation Affects Subsequent Stock Price.” The study took place over seven years, from 2001 through 2007, and examined survey data from 3,490 employees at 841 corporations that were listed in the Wall Street Journal 1000–an index of firms that encompasses 98% of U.S. gross domestic product. The project was spearheaded by Palmer Morrel-Samuels, Ph.D., a research psychologist at Michigan’s School of Public Health.

The study found that as employee motivation improved, the firm’s stock enjoyed higher subsequent returns the following year, spanning times both good and bad. As an example in 2002 the Standard & Poor’s 500 returned negative 22%. Yet the study found that for every five points added onto a firm’s Employee Motivation Index–how the study kept score–it returned an additional 2% in stock price the following year.

…Read the full article here: http://www.forbes.com/2009/08/23/employee-motivation-stocks-intelligent-investing-returns.html

Shareholders Win When Employees Are Motivated
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