the business benefits of being a great place to work business benefits of being a great place to...

The Business Benefits of Being a Great Place to Work

Erik BerggrenDirector of Customer Results & Global Research

Amy Lyman Co-Founder , Great Place to Work Institute, Co-Founder

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Change the World

successfactors.com/research/thought-leaders

We work with recognized thought leaders that share our vision of productivity improvement, all while creating a better place for people to work.

Revolutionizing the Future of Work

1950+ Customers3,000,000+ Users156 Countries60 Industries22 Languages700+ employees

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EXECUTION = PERFORMANCE

Performance and Talent Management Are Pivotal to Drive Financial Performance

Motivation

Learning(Build)

Financial PerformanceGrowth Profit ShareholderReturn

Talent / Competencies

x Organizational Ability

x

Company Strategy and Market Position

RequirementEnablerAlignment

Recruiting(Buy)

Explains15%

Explains85%

Strategic Usage of HCM Technology Drives Superior Top Line Growth

5

“… 2 percent higher annual revenue growth…

with some firms achieving 3 percent or higher”

The results are based on a study of actual usage of 157 SuccessFactors customers

Improved

• Retention of top performers

• Alignment of business strategy

• Engagement of all employees

http://www.successfactors.com/research/financial-advantagesSource: Saugatuck Technology, Inc. & SuccessFactors Research (Q4 2007); n=157

SuccessFactors Performance & Talent ManagementIntegrated Application Suite

The Business Benefits Of Creating a

Great Place to Work®

Amy LymanGreat Place to Work® Institute, Inc.

May 20th, 2008

• Employees believe that their workplace is unique and special

• An inclusive environment exists that supports a broad exchange of ideas and information

• Collaboration and idea sharing help people to learn and grow

• Higher levels of trust fuel the creative process, contributing to extraordinary accomplishments and strong financial performance

In Great Workplaces….

©2008 Great Place to Work® Institute, Inc. All Rights Reserved

...have pride in what you do...

...and enjoy the people you work with.

Trust the people you work for...

Employee

Job Other Employees

Management

Relationships are Key


Trust

Trust - Cooperation - Commitment

Cooperation - a willingness to help each other out and ability to count on others to help

Commitment - a positive anticipation of the workplace and deep sense of togetherness

CredibilityRespectFairness

leads to


• Leaders are seen as credible by employees

• People are treated with respect

• Rewards and recognition are distributed in a fair manner

Trust is developed when:


2004-2008 Trust by Job Type

80

7779

8481

86

91

82 82 82 82 82 82 82

66

60 62

74

67

73

80

66 66 66 66 66 66 66

55

60

65

70

75

80

85

90

95

100

HrlyClerical Admin

HrlyProd'n Services

Hrly Prof'l Tech Commissn/Sales Slried Prof'l Tech SlriedMgr Spvsr Slried Exec Snr Mgr

2004-2008 Overall Level of Trust by Job Type

100 Best

100 Best Overall Trust AvgLower 100

Lower 100 Overall Trust Avg


Cooperation

Is reflected in people’s willingness to help each other and in people’s confidence that they can count on others when they are in need


2004-2008 Difference in Cooperation by Job Type

84

79

84

89

87

89

93

86 86 86 86 86 86 86

69

62

71

75

73

76

84

70 70 70 70 70 70 70

60

65

70

75

80

85

90

95

100

HrlyClerical Admin

HrlyProd'n Services

Hrly Prof'l Tech Commissn/Sales Slried Prof'l Tech SlriedMgr Spvsr Slried Exec Snr Mgr

2004-2008 100 Best and Lower 100 Cooperation Average by Job Type

100 Best

100 Best Overall Coop Avg

Lower 100

Lower 100 Overall Coop Avg.


CommitmentCommitment is reflected in people’s positive anticipation of coming to work, and in their sense of working together with others to achieve a common organizational goal


2004-2008 Difference in Commitment by Job Type

80

75

80

86

81

86

92

81 81 81 81 81 81 81

61

56

62

69

63

70

79

62 62 62 62 62 62 62

55

60

65

70

75

80

85

90

95

100

HrlyClerical Admin HrlyProd'n Services Hrly Prof'l Tech Commissn/Sales Slried Prof'l Tech SlriedMgr Spvsr Slried Exec Snr Mgr

2004-2008 100 Best and Lower 100 Commitment Avg by Job Type

100 Best

100 Best Overall Comt Avg

Lower 100

Lower 100 Overall Comt Avg.


100 Best and Lower 100 List ApplicantsOverall Averages

40%

50%

60%

70%

80%

90%

100%

Trust Cooperation Commitment Great Place to Work®

82%86%

81%

88%

66%

70%

62%

72%

2004-2008 Average Trust, Cooperation, Commitment and GPTW

100BestLower 100


What happens in companies with high levels of Trust, Cooperation and

Commitment?


Voluntary Staff Turnover

2008 “100 Best” have an average full-time voluntary turnover rate of 11%.


Financial Performance of "100 Best" and "Lower 100" List Applicants 2004-2007


“100 Best” vs. Stock Market 1998-2007 Cumulative Return

Russell 3000

S&P 500Reset

Annually

Market“100 Best”

Buy & Hold


The flexibility of my work hours and the trust my management has that I am doing my job allow me to focus and accomplish what I need to do with minimal distractions. In the more than a decade I have worked here, I have always been able to balance building a successful career with family/outside of work needs. – SAS Institute

Management encourages flexible working arrangements during summer and at times of need. Management always has an open door policy and genuinely cares for the interest of even the lower level employees. Employees have the mentality that we're in this together and cooperate to get things done.- Management welcomes feedback-Timely appreciation shown to employees at work. - Ernst & Young

Amazing focus on science. Extraordinary commitment (words, deeds and money) to keeping this a great place to work. Executives are tolerant where they should be, and forcefully intolerant where they should be. The force of their leadership permeates the organization. The fortitude to stick to the stock options for everyone policy is a great example. – Genentech

100 Best Employee Comments


Best Practices & Business Success• The Milliken safety process has been so successful that their safety incidence

rate (calculated per 200,000 hours worked) declined from 3.76 in 1981 to 0.48 in 2006. Once an OSHA inspector showed up at the front office of a manufacturing plant and asked for "the person in charge of safety". He was greeted by 200 associates, all of whom own the safety process.

• At Bright Horizons, regional managers who receive high marks from employees through supporting their sense of professionalism and value, also have more financially successful child care centers.

• PCL Construction extended their cultural outreach activities to all employees with less than 3 years of service, creating a workshop designed to let everyone know how important the PCL culture, vision and values are to the success of the company and how every employee is a resource no matter what their position. PCL links their strong culture to their low turnover rate for salaried employees of 12.4%. The industry average is in excess of 20%.

• General Mills offers numerous programs that support a strong corporate culture of caring. Work schedule flexibility was viewed positively by 80% of employee Climate Survey takers in 2007. Leaders believe that flexibility contributes to high employee retention and commitment rates.


• There is no one Best Practice for every company to adopt.

• An organization’s culture must be developed internally, taking advantage of the strengths of the people within the organization.

• Credibility, Respect and Fairness in management practices are cornerstones of all great workplaces.


Final Thoughts

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