Should we judge how successful firms are by the attractiveness of their employees?
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In advertising, yes:
We examine whether a difference in pay for beauty is supported by different productivity of people according to looks. Using a sample of advertising firms, we find that those firms with better-looking executives have higher revenues and faster growth than do otherwise identical firms whose executives are not so good-looking. The impact on revenue far exceeds the likely effect of beauty on the executives’ wages. This suggests that their beauty creates firm-specific investments, in the form of improved relationships within work groups, the returns to which are shared by the firm and the executive.
Source: “Business Success and Businesses’ Beauty Capital” from NBER Working Papers #6083
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