Right-on bosses who pamper workers with silver-service treats and homely encouragement should think again, according to new research.

Job security and comfy offices may be good for staff, but a British consulting group, Watson Wyatt, says they damage share values.

If this is bad news for shareholders, it could be even worse for managers accustomed to touchy-feely social partnership.

The big stick approach was never endearing - and a return to adversarial strategy could see the popularity of well-liked bosses plummet rapidly.

This could have implications in a jobs market where demand for labour is growing like never before.

But if bosses change focus, they can seize the foreground in the "war for talent", Watson Wyatt say.

The consultants, who assessed nine Irish firms in a study of 200 companies throughout Europe, say: "Companies producing higher market valuations are those which focus their resources on retaining their most talented employees using performance-based rewards, rather than the more traditional approach of rewarding people for their tenure."

One means of doing this is to offer more opportunities for workers to earn shares in their own companies, says Watson Wyatt.

This means, of course, that workers will pay ever-more attention to the fortunes of their own companies - which could have implications for the benefits they currently enjoy.

On this, the consultants are clear: "An overly-comfortable work environment with low levels of employee turnover may actually drain a company's shareholder value." "Europe's comparatively high levels of job security with low staff turnover can lead to complacency and an under-motivated workforce.

"Traditional paternalistic employment practices common among European employers are directly correlated with lower shareholder returns."

So cruelty pays, it seems. Nice guys finish last. The I'm-your-friend-really approach is out, out, out. Bitterness is best. Them and us. The dog days are back.