Studies and experts confirm that companies with higher employee engagement are more profitable, have lower turnover, higher shareholder value, greater productivity and more. Companies with a positive corporate culture enjoy higher levels of employee engagement and better attract and retain talent. In the years since these initiatives have surfaced in corporate America, Human Resources has typically been charged with both increasing employee engagement and building a positive corporate culture. Are these initiatives better suited to the Marketing department?
One of the biggest changes in the 21st century is the way in which companies are valued. In the past, company value was calculated based on hard assets such as land, buildings, equipment, products/inventory and factories, etc. Today, over 80% of a company’s value is tied to less tangible factors, such as brand value, customer data, relationships, leadership quality, algorithms and more. Harvard Business Review now believes that competitive advantage goes to companies that manage human capital effectively rather than companies that manage finances effectively.