Investing in entertainment (or in this case more specifically sportainment) for employees has a direct impact on employee satisfaction within an organization. Recently, in the aftermath of the recent financial and economic recession, employee satisfaction has received more attention from decision makers.
When we talk to CEO’s, Marketing Directors and HR professionals from all over the world, we experience that the overall business mentality has shifted from the classic “shareholders first” to an “employees first” attitude.
As Robert Reich points out: “Your most precious possession is not your financial assets. Your most precious possession is the people you have working there, and what they carry around in their heads, and their ability to work together.”
More than one hundred years ago, consumers demanded standardized products. The products were produced by unskilled laborers performing repetitive tasks. Thus the impact of an employee leaving the company wasn’t high. It was more a matter of body replacement.
As a result, any investment going into employees was capital that wasn’t allocated to investors.
That has changed dramatically, hasn’t it?
A 2010 report by Hewitt Associates found that companies with high levels of engagement (65% or greater) outperformed the total stock market index and posted shareholder returns 19% higher than the average in 2009. Companies with disinterested employees on the other hand (40% or less engagement), had a total shareholder return that was 44%(!) lower than the broader market.