www.peopleandmanagement.com
• Profi tability and market value
• Productivity and performance
• Sales and company growth
• Workforce morale
2. Growing Bottom Line
A study of share-holder returns of the
publicly listed great workplaces by RSM India
reveals that best workplaces consistently
outperform major stock indices such as BSE
Sensex 30, Nifty 50 and CNX Nifty – Total
The Reinvestment Model Illustrates that Great Workplaces consistently
outperform major stock indices such as BSE Sensex 30, Nifty 50 &
CNX Nifty - Total Return index over a period of time.
– 2017’. We had conducted similar study
from 2013 to 2017 and this is the sixth
year of such research study. It has been
proven yet again that the publicly listed
great workplaces as identifi ed by Great
Place to Work® Institute consistently
out-perform major stock indices and
yield a signifi cantly higher return on
investment. Similar research studies were
carried out by Russell Investment Group
in US. They studied the stock market
performance of publicly listed great
workplaces in the Fortune List published
by the Great Place to Work® Institute, USA,
for well over 10 years.
720%
690%
630%
600%
570%
Reinvestment Model
540%
Hold Model
510%
BSE Sensex
480%
Nifty 50 (CNX Nifty)
450%
CNX Nifty - Total Returns Index
420%
390%
360%
Great
Workplaces
provide almost
7x times the
return
330%
300%
270%
240%
210%
180% 175%
150% 147%
141%
120%
90%
60%
30%
0%
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Returns Index. In the current study, best
workplaces have outperformed major
stock indices by a factor of at least 4 and
have yielded almost 7x returns on initial
investment!
It is observed that benefi t of higher levels
of trust in the workplace culminates into
lower employee turnover, higher productivity,
greater cost effectiveness and on top of all,
distinct impact on shareholder’s return.
RSM India has studied and analysed the
stock performance of the publicly listed
companies in 2018 that are identifi ed as great
workplaces by Great Place to Work® Institute
in their ‘India’s Best Companies to Work For
Analysis and Conclusion
During our study of share market
performance of listed Great Workplaces,
we observed that Reinvestment Model
made a Year-on-Year (YOY %) Return on
Investment of 27% in 2016-17 generating
a cumulative return on the initial
investment of 675% in past 9 years. At
the same time, Hold Model made a Year-on-
Year (YOY %) Return on Investment of 15%
in 2016-17 generating a cumulative return
on the initial investment of 629% in past 9
years.
Download the complete report from
http://www.greatplacetowork.in/best-work-
places/ibctw-2018/
675%
Comparative Cumulative
Stock Market Returns
660%
Burnout
Culture
BEST
5%
VS
Rest
10%
At Risk
BEST
6%
VS
Rest
11%
High Trust
Effort
BEST
80%
VS
Rest
67%
Culture of
Comfort
BEST
9%
VS
Rest
12%
Taking everything into account, I would
say this is a great place to work.
Vol. 9 Issue 6 • Sep-Oct 2018, Noida / Pre-Event Edition |
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