Organizational Health

The great news is that healthy organizations are better places to work and more successful.

1 Employees want to work at healthy workplaces

From surveying millions of employees, we have found that what employees want most in their jobs is to be “bought in” to what their organization is doing. Where companies achieve this we call them ‘Organizationally Healthy’.

Healthy companies outperform

2Healthy companies outperform

Companies that are ‘Organizationally Healthy’ are more successful than their competitors.

We know this because we created a fund of exceptionally healthy organizations, and the fund has outperformed the S&P 500 index by a whopping 16% a year since it started in October 2008.

How do we know what employees want in the workplace?

3 How do we know what employees want in the workplace?

From our surveys, we found that pay, benefits, training, work-life balance and managers were less important to employees than the areas we call ‘Direction,’ ‘Execution’ and ‘Connection.’ If employees scored these three areas high then they would rate working at the company very high too.

What do we mean by ‘Direction’; ’Execution’; and ‘Connection’?

4 Direction, Execution and Connection

So, what do we mean by ‘Direction,’ ‘Execution’ and ‘Connection?’

“Direction” is about employees being emotionally bought into what the organization is striving to achieve.

‘Execution’ is about the company having a high performance culture.

‘Connection’ is about employees feeling they are being appreciated and doing something meaningful.

Companies should focus on Organizational Health

5 Companies should focus on
Organizational Health

Organizations that score well on these three areas are ‘healthy’. Given that organizational health is what employees value most in the workplace, companies that want to have a better workplace should focus on their organizational health.

We are not alone

We are not alone 6

Many other sources have come to similar conclusions. Wharton business school found that companies listed on the Fortune list of best companies to work for consistently outperformed their peers over a 25-year period. McKinsey found that companies that scored in the top quartile of organizational health were 2.2 times more likely to have an above median EBITDA (earnings before interest, taxes, depreciation, and amortization).

Everyone wins

7 Everyone wins

So employees and investors are aligned. Employees want high levels of organizational health as it enriches their working life. Investors want high levels of organizational health as it makes their company more successful. And having more fulfilled employees and more successful organizations is hugely beneficial to society overall.

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