The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil

Abstract

I investigate the effect of employee satisfaction on corporate performance based on an extensive dataset of 114,004 online reviews of Brazil’s 1,000 largest listed and unlisted firms from 2013 to 2018 posted at a local subsidiary of Glassdoor. I find that overall employee satisfaction is positively associated with firm performance and that this relationship is likely to be economically relevant. Among the four dimensions of employee well-being, the link with performance is most evident for the dimension on culture, followed by career opportunities. On the other hand, the dimension on compensation and benefits was the least connected with firm performance. Taken together, these results support the view that intrinsic motivators are more relevant for superior performance than extrinsic ones popularized by the carrot and stick approach to management. I also find that the influence of employee satisfaction on performance is likely to be asymmetrical, in the sense that workplaces characterized by low satisfaction among workers are more likely to lead to poor performance than best-in-class companies are likely to produce superior performance. To my knowledge, this is the first paper to document an asymmetrical link between firm value and employee satisfaction, as well the first one to investigate this issue in an emerging economy using online reviews.

The Effects of the Strategy and Goal on Business Performance as Mediated by Management Accounting Systems

“…In previous research, the extensive use of non-financial ratios as indicators of firm success was illustrated. These include Berraies and Hamoud (2018), Dotson and Allenby (2010), Lukason et al (2019), Melián-González et al (2015), Musi et al (2018), Silveira (2019), Simon and Gómez (2014), Towler et al (2011), andWatkins (2000). The seven nonfinancial performance (NFP) indicators used in this present study were (1) customer satisfaction, (2) employee satisfaction, (3) policy implementation, (4) communication among divisions, (5) employee efficiency, (6) internal control efficiency, and (7) regulatory com-pliance.…”

“…A similar number of papers have studied non-financial performance (NFP) tools. These include the works of Banker et al (2004), Berraies and Hamoud (2018), Dotson and Allenby (2010), Wegmann and Poincelot (2012), Lukason et al (2019), Melián-González et al (2015), Musi Musi et al (2018), Silveira (2019), Simon and Gómez (2014), Towler et al (2011), andWatkins (2000). The findings from those papers present contradictory evidence.…”

Modeling knowledge management for job satisfaction improvement

“…Some authors consider that the work of HR professionals focuses on economic performance, and that such an approach then leads to greater job satisfaction (Bastida et al, 2018;Guerci et al, 2019). Similarly, other studies point out that knowledge management has a positive effect on worker productivity, and increased productivity contributes to making workers feel better and more useful, and consequently increases their satisfaction (Da Silveira, 2019;Kianto et al, 2019). Similarly, motivational job design, based on knowledge sharing, has a positive impact on individuals.…”

Criação e Distribuição de Valor na Abordagem de Stakeholders: O que os Funcionários mais Querem?

“…Dessa maneira, a satisfação no trabalho refere-se ao resultado que o indivíduo atribui acerca do seu trabalho ou ainda se este encontra seus valores na atividade que desenvolve, trazendo-lhe prazer (Locke, 1969) e proporcionando-lhe o sentimento de pertencimento (Silveira, 2019). Neste sentido, a satisfação no trabalho é um processo complexo, que envolve interações e condições de trabalhos distintas, com indivíduos diferentes entre si.…”

“…A utilidade relacionada a bens e serviços é considerada a mais elementar, pois refere-se aos bens e serviços fornecidos pela empresa, incluindo a remuneração financeira e uma variedade de outras formas monetárias (Harrison & Wicks, 2013). Diversos estudos sustentam a ideia de que esses tipos de resultados afetam a satisfação dos funcionários (Gallardo, Sánchez-Cañizares, López-Guzmán, & Jesus, 2010;Sharma, Kong, & Kingshott, 2016;Silveira, 2019). A utilidade decorrente da justiça organizacional está associada a três diferentes tipos de justiça: distributiva, processual e interacional (Harrison & Wicks, 2013).…”