The only investment that never fails

“Treating people well and authentically respecting them does lead to far better business performance. We proved it worked!”

That quote is from Jerome Dodson, the founder of Parnassus Investments. He created the Parnassus Workplace Fund, a mutual fund that invests exclusively in large American companies proven to have outstanding workplaces.

How did he define “oustanding workplaces”? He selected companies that had built solid reputations for treating their employees with “profound respect” and which supported them through on-going training and personal development. He picked companies that “genuinely cared about their employees as people, not just hired hands.” *

One of the significant characteristics of the firms that inevitably made this tough cut: Each provided some meaningful form of profit sharing, health care, and retirement benefits for all employees, and were also especially supportive of working mothers.

Surprise! The fund ended up almost doubling the gains racked up the the S&P Index, and did even better over the past five years — the period of the Great Recession — when it more than doubled, and some years tripled the return of the broader index.

It becomes a self-perpetuating cycle: Enlightened ownership and management treats employees as valued team members with tangible, measureable benefits. That creates an environment that attracts the very best talent.

Consolidated radio could learn a lot by watching some of the smaller, family-held radio groups and the lengths they go to for their employees.

Spending a little less on the top 1% with their corporate jets and lavish bonus plans and a little more on every member of the organization is better for your business, no matter what your business is.

And that’s not just an opinion. It’s proven fact now.

Quotes from FAST COMPANY.