Research by Victoria University Economics Professor, Morris Altman confirms what we already suspected. That Organisations that offer their employees higher levels of trust, cooperation, fairness and economic benefits are rewarded with increased productivity.
Professor Altman says the “Golden Rule do unto others as you would have them do unto you..this works in economics as it does in life. If people are treated well they will work harder.”
He cites Toyota as an example of a successful, competitive company with an employee-centred philosophy, including offering high wages, giving employees more say in the day-to-day operations of the company, offering more transparency about the company’s finances and avoiding heavy-handed monitoring of employees.
He also says in North America, department store Costco does just as well as Walmart, despite Walmart paying its workers approximately double the wages and offering better health benefits.
The rate of return is just as good because Costco’s workers respond to being treated well by being more productive.
The research did show however that it is possible for both highly self-serving companies to survive in highly competitive environments. Although the ‘trusting’ organisations proved to be more productive in the long run.