Profit at the Bottom of the Ladder: Creating Value by Investing in Your Workforce

Profit at the Bottom of the Ladder: Creating Value by Investing in Your Workforce

According to a new report from the McGill Institute for Health and Social Policy, improving working conditions for employees at all levels, especially those at lower rungs of the corporate ladder, has the potential to improve a company's bottom line. Funded by the Ford, Annie E. Casey, and Max Bell foundations, the report, Profit at the Bottom of the Ladder: Creating Value by Investing in Your Workforce (summary, 11 pages, PDF), is the result of a six-year study of companies in a variety of industries and nine countries, ranging in size from 27 to 126,000 employees. The study found that taking steps such as increasing wages, offering more leave and better health care, introducing profit sharing, and offering more training and advancement opportunities typically led to cost savings, increased productivity, lower turnover and absentee rates, and a rising share price.