Higher employee satisfaction improves the financial performance of companies, a new study suggests.

Research by jobs site Glassdoor found a strong link between a satisfied workforce and a firm's financial health.

The findings followed an analysis of more than 35,000 ratings on Glassdoor given by workers about their employers.

Glassdoor's chief economist Dr Andrew Chamberlain said: "These results are striking as they suggest online employee reviews can be used to predict a firm's financial performance and that there is a meaningful economic link between intangible company assets, such as employee satisfaction, and company performance in the United Kingdom.

"Employees are an important resource and not just a homogeneous cost of production.

"Tending to employees is like looking after your garden, helping them grow by giving them nutrients and an optimal environment can ultimately improve your yield."