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

Detalhes bibliográficos
Autor(a) principal: Silveira,Alexandre Di Miceli da
Data de Publicação: 2019
Tipo de documento: Artigo
Idioma: eng
Título da fonte: RAC. Revista de Administração Contemporânea (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1415-65552019000600739
Resumo: 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.
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spelling The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazilemployee satisfactionhuman capitalcorporate cultureintangible assetsonline reviewsfirm performanceAbstract 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.Associação Nacional de Pós-Graduação e Pesquisa em Administração2019-11-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S1415-65552019000600739Revista de Administração Contemporânea v.23 n.6 2019reponame:RAC. Revista de Administração Contemporânea (Online)instname:Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)instacron:ANPAD10.1590/1982-7849rac2019190224info:eu-repo/semantics/openAccessSilveira,Alexandre Di Miceli daeng2019-11-22T00:00:00Zoai:scielo:S1415-65552019000600739Revistahttps://rac.anpad.org.br/index.php/racONGhttps://rac.anpad.org.br/index.php/rac/oairac@anpad.org.br1982-78491415-6555opendoar:2019-11-22T00:00RAC. Revista de Administração Contemporânea (Online) - Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)false
dc.title.none.fl_str_mv The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil
title The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil
spellingShingle The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil
Silveira,Alexandre Di Miceli da
employee satisfaction
human capital
corporate culture
intangible assets
online reviews
firm performance
title_short The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil
title_full The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil
title_fullStr The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil
title_full_unstemmed The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil
title_sort The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil
author Silveira,Alexandre Di Miceli da
author_facet Silveira,Alexandre Di Miceli da
author_role author
dc.contributor.author.fl_str_mv Silveira,Alexandre Di Miceli da
dc.subject.por.fl_str_mv employee satisfaction
human capital
corporate culture
intangible assets
online reviews
firm performance
topic employee satisfaction
human capital
corporate culture
intangible assets
online reviews
firm performance
description 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.
publishDate 2019
dc.date.none.fl_str_mv 2019-11-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1415-65552019000600739
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dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/1982-7849rac2019190224
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Associação Nacional de Pós-Graduação e Pesquisa em Administração
publisher.none.fl_str_mv Associação Nacional de Pós-Graduação e Pesquisa em Administração
dc.source.none.fl_str_mv Revista de Administração Contemporânea v.23 n.6 2019
reponame:RAC. Revista de Administração Contemporânea (Online)
instname:Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
instacron:ANPAD
instname_str Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
instacron_str ANPAD
institution ANPAD
reponame_str RAC. Revista de Administração Contemporânea (Online)
collection RAC. Revista de Administração Contemporânea (Online)
repository.name.fl_str_mv RAC. Revista de Administração Contemporânea (Online) - Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
repository.mail.fl_str_mv rac@anpad.org.br
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