Dr. Noelle Nelson

Recent research shows that appreciation in the form of employee recognition, for example, has direct and unmistakable impact on a business' profitability, as evidenced by the following three measures of profitability.

According the the data, companies that effectively recognize excellence (appreciate employee value) enjoy a return on equity more than three times higher than the return experienced by firms that don't.

The same holds true of retun on assets.

Companies that appreciate employee value enjoy higher Operating Margins; they tend to have lower fixed costs and better gross margins.

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