‘Study on Shareholder Returns of Great Workplaces 2017’ by RSM India
Foreword: The objective of the above study is to substantiate whether the great workplaces identified by Great Place to Work® Institute in India consistently outperform major stock indices in total shareholder return. This is being sought to be established by:
a) Evaluation of share market returns (in terms of capital appreciation and dividends) from the great workplaces which are listed on stock exchanges in India.
b) Comparison of the share market returns of the listed companies included in the list of great workplaces vis-a-vis the market indices i.e. BSE Sensex, Nifty 50 & CNX Nifty – Total Returns Index.
In case of corporate entities, it is observed that benefit 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.
We (RSM India group) have been associated with the Great Place to Work® Institute in India for over 5 years for conducting the ‘Study on Shareholder Returns of Great Workplaces’ and assisting in validation of certain selection processes of the Great Places to Work.
RSM India studied and analysed the stock performance of the publicly listed companies in 2017 that are identified as great workplaces by Great Place to Work® Institute in their ‘India’s Best Companies to Work For – 2016 edition.’ We had conducted similar study from 2013 to 2016 and this is the fifth year of such research study. It has been observed that the publicly listed great workplaces as identified by Great Place to Work® Institute consistently outperform major stock indices and yield a significantly higher return on investment.