(( Photo of a nap pod on the google campus, photo from Reuters ))

I just ran across news of this study, which suggests that investing in employee happiness is a sound business strategy in the long term.

Another, more subtle implication of the research, says Edmans, goes to the nature of short-term thinking among corporate managers. Even if managers believe employee satisfaction enhances long-term corporate performance, they may not act on their beliefs because investing in employees often reduces earnings in the short term.

It goes on:

That concern, he adds, is driven by managers who argue it is not possible to credibly communicate to investors that profits might be lower in one period in order to invest in employee satisfaction that may pay off in the future.

Jon Stewart of the daily show put it quite well in his casual observation that “It seems to me that we favor investment, but we don’t favor work.” (( Taken from his interview with Alan Greenspan )) This is something we have to change.

Tags: Business, Long Term Thinking