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ACKNOWLEDGMENT'S IMPACT
ON THREE PROFITABILITY
MEASURES: RETURN ON EQUITY,
RETURN ON ASSETS, AND
OPERATING MARGIN
Acknowledgment is one of the most powerful, yet misunderstood, misused and untapped energies available to us.
Recent research shows that acknowledgment in the form of employee recognition, for example, has direct and unmistakable impact on a business's profitability. A study conducted by The Jackson Organization included 26,000 employees at all levels in 31 organizations of varying types and sizes. In addition to other questions, employees were asked to state to what degree they agreed with the question: "My organization recognizes excellence," another way of saying, "My organization acknowledges and appreciates me." These responses were statistically analyzed and then compared with three profitability measures: return on equity, return on assets, and operating margin (The Jackson Organization, Employee Recognition and Profitability: Making the Connection.) |
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