Happy employees = more profit

MANHATTAN, Kan., Feb. 4 (UPI) -- Employees with higher levels of psychological well-being and job satisfaction perform better and are less likely to quit, a U.S. expert says.

Thomas Wright of Kansas State University said benefits of a psychologically well workforce are important to employers, especially so in our highly troubled economic environment.

"Simply put, psychologically well employees are better performers," Wright says in a statement. "Since higher employee performance is inextricably tied to an organization's bottom line, employee well-being can play a key role in establishing a competitive advantage."

As part of Wright's academic and consulting work, Wright used a form of utility analysis to determine the level of actual savings tied to employee well-being. For example, in a sample of management personnel with average salaries in the $65,000 range, he found that being psychologically distressed could cost the organization roughly $75 a week per person in lost productivity. With 10 employees that translates to $750 per week in performance variance; for 100 employees the numbers are $7,500 per week or $390,000 per year.

In addition, when employees have low levels of well-being and job satisfaction, they are more likely to quit their job and employee turnover can be extremely costly, Wright added.

Wright's recent research also indicates that psychologically well individuals are more likely to demonstrate better cardiovascular health, reducing healthcare costs.