Personnel(ly) Speaking
Personnel Management Systems, Inc.
Best Places to Work
Do you want your organization to be a “Best Place to Work?” Our firm recently received this award, and people now ask us how we did it. First off, start by thinking beyond simply “winning” the award and instead focus on how your organization’s workplace might be improved. This is, of course, the real purpose of awards like these - getting firms to focus on how they can be better employers.
Ask yourself:
· What does it mean to be a “Best Place to Work?”
· What would we do if we wanted our organization to be a “Best Place?”
· Are companies that are “Best Places to Work” more successful and profitable? Really, why should we care?
Why should companies care? Believe it or not, this subject has been extensively researched, and good things really do happen to companies that are “Best Places to Work.” For example, “Best Places to Work”:
· Have more and better quality job applicants;
· Experience lower employee turnover;
· Reduce their health care costs;
· See a higher level of customer satisfaction;
· Benefit from greater innovation and creativity;
· And, actually have higher productivity and greater profitability.
In fact, on several profitability indicators of public companies, the “Best Places to Work” consistently outperformed companies not on the list.
Most companies would love to have better applicants, lower turnover, reduced health care costs, happier customers, more innovative employees and of course, higher profitability and productivity. But how do you do it?
Before addressing what these companies do to become “Best Places,” let’s clear up some misconceptions. The primary misconception is that companies believe they are among the “Best Places to Work” if they provide a good medical plan, paid vacations, competitive pay, and a retirement program. Don’t get me wrong. These are all good and necessary, but by themselves they won’t make your firm a winner. Like it or not, employees expect these things and not providing them simply becomes a disincentive. Providing these basic benefits just makes you competitive.
By analyzing what motivates employees, you will see that the basics need to be covered first before you can achieve “greatness.” Organizations have to start with a foundation and build from there. Let’s say that as an employer you believe in allowing employees lots of creativity at work. And, it just so happens, Best Companies do in fact embrace employee creativity. However, say your company lacks a health insurance plan and pays at the bottom in its industry. Trust me. You will not be a “Best Place to Work” even if you allow endless opportunities for creativity.
Organizations must first satisfy employees’ lower level needs before those employees put any value in higher level benefits. (Some of you may recognize Maslow’s Hierarchy of Needs model at work here, which is very relevant.) We can’t claim to want employees to be great problem solvers on one hand and not provide them with a regular paycheck on the other. Instead of problem solving they will be very focused on how to pay the rent!
Once the basics are in place, employers can focus on how to really become a “Best Place to Work.” Unfortunately, there’s no simple checklist of things that you have to do. Successful companies have created a work environment that is more than a collection of perks or benefits. A “Best Place to Work” is a place where employees want to be.
Many books, articles, and surveys help us understand what a “Best Place to Work” looks like. Here are the things that “Best Places to Work” companies have in common. Ask yourself if your organization exemplifies these characteristics.
· Team work, mutual respect, camaraderie, and a sense of family - Honesty and trust between employees and a sense of family in the workplace makes for a comfortable, secure work environment.
· Understanding of the companies goals/objective - Ask employees, and they will be able to tell you the company’s goals and objectives.
· Trust between management and employees; fairness; equal treatment – Employees are confident that they are being treated fairly and with respect.
· Recognition - Do you recognize employee accomplishments? These companies have built in both formal and informal recognition.
· Manager effectiveness and accountability – Successful companies have effective managers who are held accountable.
· Feeling valued; caring - Employees feel valued and cared for.
· Engaging and meaningful work; job satisfaction; pride in work - Employees are engaged and take pride in their work.
· Pay and benefits - Pay and benefits are competitive.
· Open communication and collaboration - Employees feel there is a high level of communication and collaboration between both employees and management.
· Advancement opportunities – Employees have the opportunity to advance their careers within the company and also to improve their job skills.
· Diversity - The younger generations in particular expect to see diversity in the workplace.
· Tools and Resources - Employees have what they need to do a good job.
· Work/life balance – These companies respect and embrace a work/life balance and allow flexibility in the workplace.
· Fun, Humor – If you can’t laugh and smile at work, your company will not be a “Best Place to Work!”
Becoming a “Best Place” is hard and frankly not for everyone. But if you ask yourself - do a gut check - you will agree that we would all like to work for a “Best Place.” Why? Because there would be mutual respect across all employees; people would be valued and recognized; you would have the tools and resources to do a good job; it would be fun; pay and benefits would be fair; goals would be understood; work would be meaningful; people would collaborate; diversity and work/life balance would be part of the culture; and managers would be held accountable. The Great Places to Work Institute says it best, “A great place to work is one in which you trust the people you work for, have pride in what you do, and enjoy the people you work with.”
Personnel Management Systems, Inc. was a 2007 winner in the Puget Sound Business Journal “Washington’s Best Workplaces” and also received the Alfred P. Sloan award for “Business Excellence in Workplace Flexibility.” If we can help your organization or assist with any Human Resources issue, please give us a call.
Personnel(ly) Speaking is a monthly comment on HR issues of importance. It is intended to provide general information and must not be construed as legal advice. Reproductions are allowed as long as credit for this information is given to PMSI. We welcome your comments, questions, and concerns. © PERSONNEL MANAGEMENT SYSTEMS, INC., Corporate Office (425) 576-1900, Colorado Office (720) 497-0200, www.hrpmsi.com.