Print Page   |   Contact Us   |   Sign In   |   Register as Guest
Community Search
IMA & Industry Calendar

10/23/2016 » 10/26/2016

11/14/2016 » 11/15/2016
HR & Employee Benefits Summit - 2016

News & Press: Industry News & Press Releases

ECSI: Proof That Engagement Pays Big Dividends

Wednesday, March 02, 2016   (0 Comments)

ECSI: Proof That Engagement Pays Big Dividends

The Engaged Company Stock Index shows that companies with high levels of employee, customer and community engagement financially outperform many of America’s biggest corporations. Yet, many companies have no engagement policies at all.

“Many companies aren’t aware that investing in employees and the community pays off in terms of value,” says Alex Edmans, Professor of Finance at the London Business School. “People still have the zero-sum mentality that a dollar given to employees is a dollar taken away from shareholders. So they try to invest as little as possible.”

Even managers who are aware of the benefits of investing in employees may not do so, because it only pays off in the long run, according to Edmans, who is currently on leave from the University of Pennsylvania’s renowned Wharton School. “Many managers are pressured to meet short-term earnings targets.”

The Engaged Company Stock (ECSI) reveals that, from Oct. 1, 2012, through Dec. 31, 2014, companies with high engagement scores outperformed all of the companies comprising the Standard & Poor’s 500 stock index by more than 22 percentage points.

The 45 companies with high engagement scores represent numerous industries and include Delta Air Lines, Nike, Hershey, General Electric and pharmaceutical giant Eli Lilly.


View the full article on


Sign In

Forgot your password?

Register as a Guest

News & Press Releases
Untitled Document