Employee-Friendly Companies and Work-Life Balance: Is There an Impact on Financial Performance and Risk Level?

Journal of Organizational Culture, Communications and Conflict, Forthcoming

21 Pages Posted: 16 Feb 2014

See all articles by Janell L. Blazovich

Janell L. Blazovich

University of St. Thomas

Katherine Taken Smith

Texas A&M University-Corpus Christi-College of Business

Murphy Smith

Texas A&M University-Corpus Christi-Department of Accounting

Date Written: 2013

Abstract

Companies and individuals are increasingly concerned about employee-friendly work environments and work-life balance. Past research shows that employee-friendly work environments and particularly work-life balance contribute to employee satisfaction. The present study addresses two important related research questions. First, while employee-friendly companies may have greater worker satisfaction, do employee-friendly companies have superior financial performance? Second, do employee-friendly companies have lower levels of risk? Results of our analysis indicate that employee-friendly companies, compared to other companies, do indeed have better financial performance and lower risk levels. This is an important finding, as it affirms corporate efforts to offer employee-friendly work environments, including facilitating work-life balance for employees. Such efforts pay off, not only with worker satisfaction, as demonstrated in prior studies, but also as shown in this study, with improved company financial performance and risk level.

Keywords: employee-friendly, work-life balance, financial performance, risk

JEL Classification: J12, J16, J28, M00, M12, M4, M51

Suggested Citation

Blazovich, Janell L. and Smith, Katherine Taken and Smith, Murphy, Employee-Friendly Companies and Work-Life Balance: Is There an Impact on Financial Performance and Risk Level? (2013). Journal of Organizational Culture, Communications and Conflict, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2396084

Janell L. Blazovich

University of St. Thomas ( email )

2115 Summit Avenue
AQU217
St. Paul, MN 55105
United States

Katherine Taken Smith

Texas A&M University-Corpus Christi-College of Business ( email )

6300 Ocean Drive
Corpus Christi, TX 78412
United States

Murphy Smith (Contact Author)

Texas A&M University-Corpus Christi-Department of Accounting ( email )

6300 Ocean Dr
Corpus Christi, TX 78412
United States

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