NTU study shows clear gains of work-life balance – reduced staff turnover, increased work productivity, and better bottom lines.
 
Treat them well, help make their lives better, and the company gains.

This hunch is backed up by hard statistics.

After surveying 7,000 companies, a team of multidisciplinary researchers from NTU's Nanyang Business School (NBS) have found that firms with more extensive work-life benefits increase employee engagement and reduce turnover rates. The team of researchers, led by Prof Ang Soon, comprised Asst Prof Khim Kelly, Asst Prof Cheryl Tay, and Assoc Prof Hesan Quazi.

The study, believed to be the first in the world, was in collaboration with and funded by Singapore's Ministry of Manpower. 

It demonstrated mathematically that treating workers well actually raises a company's bottom line.

The research included interviews with 310 full-time employees of Sakae Sushi, a restaurant chain managed by Apex Pal, a Singapore-based F&B company. The researchers found that Apex Pal gained substantially from work life benefits through improved customer satisfaction, better profits, enhanced work productivity, and higher stock returns.

Among the study's findings:

• Staff turnover can cost as much as 9.5 times an employee's basic monthly salary
• One day's absenteeism can set a company back by up to 2.3 times an employee's daily wages and benefits
• The support of top management is crucial for sustaining work-life practices

According to the NTU researchers, managing the work-life balance makes strategic business sense. Often, all that is required is a little flexibility. For example, if the nature of a business allows it, employees can be given the flexibility to stagger their work hours or work from home. 

"A firm's ability to attract and retain talent and to bring out the best in its workers drives its profitability," says Prof Ang Soon, Goh Tjoei Kok Chair Professor, a specialist in Strategy, Management and Organisation at NBS.

The research, commissioned by the Ministry of Manpower in January this year, supports the mission of the national Tripartite Committee on Work-Life Strategy, chaired by Mr Hawazi Daipi, Senior Parliamentary Secretary (Education and Manpower). 

© Corporate Communications Office