Capital Allocators – Inside the Institutional Investment Industry Dan Ariely – The Human Capital Factor (Capital Allocators, EP.195)
May 17, 2021
Dan Ariely is a renowned behavioral economist and professor at Duke University, also a partner at Irrational Capital. He discusses how corporate culture and employee motivation significantly influence financial performance. Key topics include the evolution of human capital in investing, the impact of COVID-19, and the complexities of gender equity in the workplace. Ariely also critiques traditional ESG practices and presents a human capital index connecting employee treatment with profitability, alongside insights from his unique research and recent endeavors.
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Human Capital and Stock Performance
- Quantifying human capital involves understanding how companies treat employees and its impact on stock market performance.
- Research suggests this is a valuable area for finding excess returns.
Employee Surveys
- Employee surveys are the best way to gather data on subjective experiences like motivation and appreciation.
- These surveys offer better insights than indirect measures like sick days.
Glassdoor Insights
- Look for differences in appreciation levels between management and employees on Glassdoor.
- Larger gaps indicate potential misalignment and lower productivity.