OPINION: Employee satisfaction correlates with shareholder value, Lawrence A. Cunningham writes.
Investors prefer that corporate managers see employees as investments and partners in the business. But many people today reflect employee relations through political, metaphorical or even antagonistic eyes.
Employers’ response to employee demands vary, from outright rejection to complete acquiescence, with neither being ideal for shareholders. Some employers cater to particular employees by adopting political identities, such as Dish Network DISH, +1.20% or Patagonia on the left and Duke Cannon and Molson Coors Beverage TAP, -0.11% on the right. Politicizing a firm can be a good economic strategy in certain industries and is more tolerated than it once was.
KPMG will make direct firm contributions to the 401 rather than limiting them to matches of employee’s own contributions. The company is reducing employee health-care premiums by 10% without changing benefits. It now grants new parents 12 weeks of paid leave and separately offers another three weeks for employees needing to handle other caregiving roles.
This approach seems right for a society that continues to look to the private sector, not government, to generate resources for people. Even as Washington explores ways to thicken the social safety net, it’s corporate America that provides life-changing benefits to most Americans.
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