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Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis.

Journal of Applied PsychologyPublished 1 January 2002
James K. Harter, Frank L. Schmidt, Theodore L. Hayes
Citations4,509
SJR quartileQ1
SJR score6.80
SNIP3.33

TL;DR

Generalizable relationships large enough to have substantial practical value were found between unit-level employee satisfaction-engagement and business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents.

Abstract

Based on 7,939 business units in 36 companies, this study used meta-analysis to examine the relationship at the business-unit level between employee satisfaction-engagement and the business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents. Generalizable relationships large enough to have substantial practical value were found between unit-level employee satisfaction-engagement and these business-unit outcomes. One implication is that changes in management practices that increase employee satisfaction may increase business-unit outcomes, including profit.

Keywords

Health ProfessionsBusiness, Management and Accounting