Business-unit-level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: a Meta-analysis

Overview

Journal J Appl Psychol

Publisher American Psychological Association

Specialty Psychology

Date 2002 May 11

PMID 12002955

Citations 132

Authors

James K Harter

Frank L Schmidt

Theodore L Hayes

Affiliations

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Abstract

Based on 7,939 business units in 36 companies, this study used meta-analysis to examine the relationship at the business-unit level between employee satisfaction-engagement and the business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents. Generalizable relationships large enough to have substantial practical value were found between unit-level employee satisfaction-engagement and these business-unit outcomes. One implication is that changes in management practices that increase employee satisfaction may increase business-unit outcomes, including profit.

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