In addition, the researchers highlight the fact that they were able to see complex relationships from data gleaned almost exclusively from company records. Managers are likely to have just as much valuable information readily available—the raw materials they need to uncover the keys to converting workforce satisfaction into measurable financial results.

THE TAKEAWAY

How can HR practitioners retool their policies and procedures to improve financial performance through workforce satisfaction?

An investment in improving workforce satisfaction will not necessarily translate directly to the bottom line; rather, managers should start with the bottom line and trace a path backwards, searching for factors that might affect profits and be affected by workforce satisfaction.

 In retail firms, such as the one studied, efforts to increase employee satisfaction at the store level would probably manifest initially as improved employee retention and better employee responsiveness to customers. The best scenario would be to have a workforce with varying levels of experience, since relatively new employees tend to provide better customer responsiveness, but senior ones tend to provide more knowledgeable and personalized service.

Once employee turnover is under control and customer responsiveness and service begin to improve, the store would expect to see incremental improvements in c