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The Business Case for Happy Employees (Financial Times)

Simon Mundy and Patrick Temple-West of the Financial Times sat down with Irrational Capital co-Founder, Dan Ariely, to hear "The Business Case for Happy Employees".

We are trying to get people to stop focusing on what’s easy to measure, and to get people to measure what’s right,” Ariely shared.

"Through his firm Irrational Capital, set up with former fund management executive David van Adelsberg, Ariely has come up with something called the Human Capital Factor, a metric to reflect workers’ views of their companies. It uses millions of internal survey responses, as well as data from public sources such as Glassdoor, to build a picture of workers’ motivation and sense of “psychological safety”. Crucially, the HCF looks not only at overall sentiment, but about how evenly it is distributed. So a company where senior staff are much happier than their juniors, or men happier than women, will take a big hit to its score."

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