Category Archives: Great Place to Work

Good News From Your L&D Department!

Data Point Tuesday

A 2014 report from Bersin by Deloitte, “The Corporate Learning Factbook 2014: Benchmarks, Trends, and Analysis of the U.S. Training Market” relays some positive information regarding investment in employee development. Businesses increased training budgets by an average of 15% last year, reflecting the highest growth rate in this area in the last seven years, and also likely that as the economy continues to mend, organizations are able to reinvest in areas that experienced significant cost cutting during the downturn. At a time when there is discussion of a lack of specified skills in the talent pool, this would appear to be welcome news, particularly because this investment applies not only to short term training. For mature organizations this training budget involves identifying capability gaps now and into the future and combats them by developing a “supply chain” of skills to fill gaps in the long term.Bersin by Deloitte

How much are organizations spending on these increased L&D budgets? On average in 2013, businesses across the United States spent $1,169 per learner. This amount varies by company size and industry, with tech firms leading the pack in terms of amount invested per learner (spending an average of $1,847). As far as which areas of training and development organizations are focusing their increased budgets on, leadership development takes the largest share, with 35 cents on average of each training dollar going to leadership development at all levels. This certainly suggests this is an important strategic investment for companies in the coming year. As the study reports, “more than 60% of all companies cite leadership gaps as their top business challenge”.

Spending on L&D initiatives is likely to be higher for organizations with a more “mature” L&D function. Those ranked at either 3 or 4 on Bersin by Deloitte’s maturity model spent an average of 37% more on training and development than the least mature organizations. Here at Great Place to Work, we can certainly attest to the fact that organizations on the FORTUNE 100 Best Companies to Work For list invest significantly in training and development programs. In 2013, companies on the list offered 66.5 hours of training annually for salaried employees and 53 hours of training for hourly employees, with close to 70% of those hours devoted to employees’ current roles and nearly 40% focused on growth and development. Though they display impressive training and development programs, many of these Best Companies cited employee development as remaining an area of focus, with 3 key areas highlighted: Leadership Development (reflecting the data from Bersin by Deloitte), Career Road-mapping, and Diversity Development.

This investment trend is good news for employers and employees alike. Employers will have greater inventories of skills in-house and may not have to turn to the marketplace as often – or expensively – in coming years to support basic business operations. Additionally, by providing skills development to younger workers who are arriving with significant skills deficits, employers may be staunching the early talent drain from their organizations. And employees of all ages continue to need growing support to expand their knowledge and skill bases as the world of work continues to evolve and certain skills het harder and harder to find.

But the opportunity to develop management and leadership skills may be the most valuable investment for both sides of the employee-management relationship. It prepares the next generation of organizational leaders, it communicates a commitment to employees’ futures and it strengthens the ties between these two sides of the employment equation. That high performing employers are spending 40% of corporate learning dollars on their future leadership talent would be a compelling component of any employer’s employee value proposition.

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Filed under Bersin, China Gorman, Data Point Tuesday, Deloitte, Great Place to Work, Leadership, Learning/Development, Skills Gap, Talent development

Job Seekers: Look to Best Companies!

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I discussed a few posts ago how companies on the FORTUNE 100 Best Companies to Work For list are experiencing huge amounts of growth in headcount. That post focused on how these outstanding workplaces are combating growing pains and dealing with rapid expansion. Being ranked one of the best workplace cultures in the US certainly helps feed the cycle of growth, as job seekers apply in droves.

The good news for job seekers? The Best companies are hiring and they are hiring a lot! FORTUNE reports that at least 24 companies on this year’s 100 Best Companies to Work For list are planning to fill at least 1,000 (and for some, even more!) jobs in the coming year. From big tech companies like Google (ranked #1), Intel, and Cisco, to medical organizations like Houston Methodist, retail stores like Nordstrom, and markets like Whole Foods and Wegmans, the “we’re hiring” sign is posted out front.

What are these companies looking for in a new hire, and who is getting hired? At Great Place to Work, the research and analysis firm that produces the lists, we’ve pulled together some hiring statistics from this year’s Best Companies to provide a little perspective.  The 100 Best Companies last year filled 6,297 positions, on average, for both new and already existing positions. The average number of these positions filled internally was nearly 30%. The average number of new hires referred by current employees was 28%. This corroborates what we already assume, that internal referrals add significant weight to applications, so before all else, reach out to potential contacts! There can be big benefits for the person referring you as well, so don’t automatically assume people might view it as a hassle. The average maximum bonus paid for a single referral at best companies in the last 12 months was $3,595!

How to impress in an interview? According to recruiters from best companies that are hiring (via FORTUNE), top ways to impress include: being able to articulate your alignment with the company’s mission and values (and explain why they resonate with you), doing exceptional “homework” and truly understanding the business and key competitors going into an interview, being able to discuss how you plan to impact the company, and demonstrating passion, curiosity, and (a big one!) innovation.

For new college grads the numbers may seem a bit less optimistic, out of the average new hires in the last year (6,297) the average number of new graduates hired was 496, and the average percent of positions filled by college students at this year’s best companies is 9.9%. However, this shouldn’t discourage new graduates from applying, as they are automatically equipped with several highly valued skills beyond a basic degree. Examples I’ve touched on in previous blogs include that college students and Millennials are more likely to be passionate about social responsibility and attuned with an organization’s mission and values, be highly aware of technology and social media and able to quickly assimilate with a company’s use of such tools. No matter who you are, however, if you are looking to find a new job consider these stats, and check out this year’s FORTUNE 100 Best Companies to Work For list– you may be very glad you did.

Best Companies Hiring

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Rapid Growth and Great Workplaces

Data Point Tuesday
The 2014 FORTUNE 100 Best Companies to Work For list announcement is just days away and here at Great Place to Work we just can’t wait to share some of the awesome 100 Best Companies Trends from this year’s list! In true Data Point Tuesday fashion, I’ve compiled some noteworthy stats from our 2014 100 Best Companies Trends whitepaper to share with you, (the full trends report as well the Fortune 100 Best Companies list will be available here on Thursday) enjoy the sneak peek!

One of the most prominent trends we’ve seen with Best Companies this year is growth. For 2014 100 Best Companies with available revenue data, revenues in the last 24 months have risen an average of 22.2% and headcount is increasing to match that. The number of employees at the 2014 100 Best Companies increased by an average of 6.1% since 2012 and 15.4% since 2011 which, according to Current Employment Statistics from the Bureau of Labor Statistics, is nearly five times the growth rate of U.S. companies overall in the same two-year period. This significant increase in headcount, while positive for companies, undoubtedly also raises concerns. During times of rapid growth organizations can experience a number of challenges including: inadequate skills and pipeline of leaders, loss of top talent and leaders, scaling and developing new systems, assimilating new employees both socially and process-wise, bringing new and longer tenure employees together, balancing cultural norms of past with the need to grow quickly and be a company of the future, and burn out and disaffection of existing employees. With such challenges in mind, how are these Best Companies managing such rapid growth, and, what exactly are they doing to avoid growing pains?

In 2013 Great Place to Work compiled a benchmark group of great workplaces experiencing high growth (+20% employee population) while appearing on the Best Companies list between 2011-2013. The group was used to study the relationship between rapid growth and the employee experience at the 100 Best and included several Best Companies, such as Chesapeake Energy, Hilcorp Energy Company, NetApp, Quicken Loans, Rackspace Hosting, salesforce.com, and World Wide Technology, Inc. Results of the study indicated an exceptionally high level of trust at Best Companies experiencing rapid growth, with 94% of employees at such companies stating that “taking everything into account, I would say this is a great place to work” vs. 91% of employees at Best Companies not experiencing such rapid growth. Additionally, employees at high growth Best Companies displayed a 4% higher average score on all trust index statements compared with employees at Best Companies not experiencing rapid growth. Trust index scores correspond to statements such as: “management is approachable, easy to talk with”, “this is a fun place to work”, “I feel I receive a fair share of the profits made at this organization”, and “people look forward to coming to work here”. It’s noteworthy too that these high trust index scores at Best Companies experiencing rapid growth come from both new hires as well as tenured employees (2+ years tenure).

Great Place to Work Chart
We can take away from this data a better understanding of how Best Companies are handling the growth trend. Marcus Erb, Associate Vice President of Research, and the leader of the 2013 study on the relationship between high growth and the employee experience at the 100 Best sums it up well: “Our research shows that as far as the employee experience is concerned, companies with a strong foundation of trust, a robust leadership pipeline, and a firm commitment to the company’s culture are far better at navigating the challenges that come along with growth and change.”

Make sure to check out the 2014 FORTUNE 100 Best Companies list on January 16th

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Good Ethics = Good Business

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We’ve officially kicked off the New Year –happy 2014! With the New Year comes the tradition of resolutions, which we hear a lot about in these first few weeks of the year. I’ll be honest, I’m not so big on New Year’s Resolutions, but I do think there’s value in paying close attention to the questions that resolutions stem from, like “what can I do to better my business/life/relationships?” I prefer to call it continuous self-improvement because it’s likely that many of these resolutions are things we should always be aiming to improve, and not just in the space of one defined year. In the spirit of the tradition though, I’ll pose this to you: if you were to make one resolution this year that would impact the lives of your employees and the financial performance of your organization, what would it be? My answer: be an ethical business. This is the most fundamental attribute of a great workplace, the foundation that must exist to build all other important parts of a great workplace. And while it might seem obvious thing to aim for, nearly HALF of all U.S. employees report witnessing unethical or illegal conduct in their workplace each year (according to a 2013 Effective Practice Guideline’s report from the SHRM Foundation) with the majority of these events going unreported and unaddressed!

SHRM-Foundation-EthicsBe an ethical workplace because this statistic is alarmingly high; be an ethical workplace because good ethics = good business. The SHRM Foundation’s report explains that an organization’s culture is the strongest predictor of how much market value that firm will create for every dollar invested by shareholders. In fact, the stock price growth of the 100 most ethical firms (based on the most widely used measure of ethical workplace culture) outperformed stock market and peer indices by nearly 300%. Looking from 1998-2011 the annualized returns of FORTUNE’S “100 Best Companies to Work For” in the United States were 11.06% versus 4.36% for the Russell 3000 and 3.38% for the S&P 500. There’s a flip side to this too though. If good ethics = good business, then bad ethics = bad business, and in a BIG way. More than 50% of the largest corporate bankruptcies have happened due to unethical business practices. And what was the cost of these bankruptcies to owners and the economy? $1.228 trillion, or, as the EPG reveals, nearly 10% of the U.S gross domestic product in 2011!

Now, I don’t disregard that many of the statistics we see on a daily basis fall into a kind of grey area. It’s likely we’re aware of the many variables that affect their legitimacy, like intent of the company producing the report or maybe the lack of a wide enough demographic representation, and so we use them more as guiding than supporting evidence. The statistics on ethical business though, seem pretty black and white to me.

I’ll say it one more time. Be an ethical workplace. Be an ethical workplace because the statistic that almost 50% of employees witness unethical behavior each year is alarmingly high. Be an ethical workplace because good ethics = good business. Be an ethical workplace because it’s a New Year and it’s a resolution to always have; but most importantly, be an ethical business because it’s the right thing to do.

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Filed under China Gorman, Data Point Tuesday, Ethics, Great Place to Work, Great Place to Work Institute, SHRM, SHRM Foundation

Employee Recognition

Data Point Tuesday

The Gift That Keeps on Giving

Employee recognition is an important form of positive feedback (who doesn’t love being recognized for their efforts after all?!) and a 2013 study by Globoforce gives us even more reason to institute this type of feedback in our organizations. The study examines the growing intersection between recognition and employee performance and has some noteworthy points. Where recognition is concerned, perhaps the most important point made is that recognition directly impacts business results. Out of 708 randomly-selected fully employed persons in the United States (aged 18 or older) who are employed at organizations with a staff size of 500 or more employees,  those who were recognized with values-based recognition reported a positive change in their productivity. Additionally, 49% of respondents who had experienced values-based recognition indicated a positive change in relationships, 43% indicated a positive change in their customer service efforts, and 82% stated that being recognized for efforts at work motivated them in their job.

These statistics reinforce the value and importance of recognizing employees, but what I found particularly interesting and a less obvious benefit of employee recognition was how the ability to give vs. receive recognition affected employees. The study found that employees who are empowered to recognize other employees at their organizations were twice as likely to identify themselves as highly engaged; highlighting that value should be placed on allowing employees to give recognition as much as it is placed on making sure employees receive recognition. Another interesting and less obvious result of employee recognition is the link between recognition and alignment with organizational culture and values. Of respondents surveyed, 48% indicated that receiving recognition when they did something right served to align them with their organization’s values and culture. As I discussed in another recent post, employees who feel strongly aligned with company values and mission are more satisfied with and likely to remain at a job, so this relationship between values and employee recognition is a valuable one to explore.

globoforce

Employee recognition can also influence employees’ perception of performance reviews. Globoforce’s study found that 76% of respondents thought recognition data would make reviews better, and 75% of respondents who had been recognized recently stated that they enjoyed their reviews. We can attribute these changes in perception toward reviews to the attributes like engagement and connection with company values, but also to another idea. As the study points out, peer and managerial recognition act as a form of social crowdsourcing, a familiar and comfortable concept for employees who most likely use crowdsourcing programs like Yelp or Amazon regularly. 80% of respondents felt that crowd sourced (manager plus crowd sourced peer feedback) to be more accurate. With employee recognition serving as a form of crowd sourced feedback it makes sense then that employees who were recently recognized felt more comfortable in reviews. But why does it matter if employees enjoy their reviews? The research shows that employees who are satisfied with reviews are more highly engaged, less susceptible to job poaching, and more satisfied with their job.

This data show that creating a system that gives employees feedback from peers as well as from managers – feedback that is values-based – is the gift that keeps on giving. To employee engagement, to higher retention, to financial performance. Who doesn’t want that gift under the tree on Wednesday?

What does employee recognition look like in your organization? Do you have recognition programs in place? Do you encourage employees to recognize others as well as for managers and supervisors to give recognition? Use this data as a catalyst to examine how recognition plays a role in your business. Ramping up the positive feedback could just be the key to a healthy domino effect, creating employees that are more engaged, more productive, more connected to company values, and more satisfied with their reviews.

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Filed under China Gorman, Data Point Tuesday, Employee Engagement, Employee Recognition, Globoforce, Great Place to Work, Great Place to Work Institute

Bring me a Higher… Purpose!

Data Point Tuesday
The Importance of Connecting Employees to a Clear Corporate Mission

A recent study by Spherion, “The 2013 Emerging Workforce” examines the 2013 workforce and the post-recession resurgence of the “emergent worker mentality” characterized by the study as one which focuses on a free-agency style employment. While the study provides data to support this point it is more than likely we have experienced the validity of this resurgence in our daily lives, perhaps witnessing friends or colleagues job-hopping more frequently, or seeing an increased social conscience in employees and new talent. Whether we’ve confirmed suspicions that our current workforce is driven by a very different set of factors than previous generations or not, insights from this report can help to remind us of the importance of understanding this emergent worker mentality.

Data supports that connecting employees to an organizations values and greater corporate mission is one of the most influential attributes of job satisfaction for the emergent worker. 70% of respondents from Spherion’s study who worked for a company with “a clear mission and follow through” reported that their level of job satisfaction was very/extremely good , compared to a job satisfaction rate of just 23% for organizations with no clear mission and follow through. As Jake Magleby stated in a blog published by Great Place to Work last month: “Businesses with vision are often more successful than their competitors. This is because people like to support a specific cause or purpose. Business leaders who recognize this can develop a vision for their company that is based on common values and shared goals… This vision for a better world is something that most people not only relate to, but very much want to support. This support translates into a healthy bottom line for the company and a healthier community”.

Data from Spherion’s 2013 Emerging Workforce Study not only confirms that employees at companies with a clear mission are more satisfied with their jobs but are also that they are more likely to stay at their jobs. 70% of respondents at a company with a clear mission and follow through reported that the likelihood they would stay at their current job for the next five years was excellent/very good, and only 21% responded that they were at least somewhat likely to look for a new job in the next 12 months. Additionally, respondents from companies with a clear mission and follow through felt more confident in their growth potential than employees from organizations without a clear mission and follow through. Given these returns, all organizations should consider making their mission and values even more visible and relatable for employees and this has been a top priority for me in my new role at Great Place to Work. Does your company place a premium on mission and values? What actions do you take to connect employees to your mission?

corporate-mission-importance

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Laws Require WorkFlex – Really?

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There’s been a lot of talk recently regarding flexible scheduling policies in organizations. All kinds of people have been writing about whether such policies are actually beneficial or harmful for businesses, as well as questioning if flexible scheduling polices are really essential or non-essential to things like employee engagement, well-being, and productivity.  Actually, I think these discussions miss the point and I don’t think any of these questions can be answered on such a broad scale. The potential for flexible scheduling policies to help or hinder an organization is dependent on a whole series of variables, making such questions decidedly organization specific and not answerable as a larger theme that applies to all organizations. What we can confirm about flexible scheduling policies however, is that they are a highly regarded benefit and broadly implemented by some organizations.  The graph below from Statista, detailing data from a 2013 Employee Benefits Report by SHRM, found that  in the U.S in 2013, 58% of employers offered the option of telecommuting to some of their employees and 4% planned on starting to offer telecommuting within the next year. This data gives us a rough idea of the implementation of flexible scheduling policies within the U.S, and with more than half of employers offering telecommuting options it’s obvious that this is an approach worth discussing.

Statista SHRM Telecommuting 2013

We can clearly point to Marissa Mayer’s decision to ban telecommuting at Yahoo! (see my post here) as one of the major sparks in the recent discussions around flexible scheduling. Adding to the controversy is legislation that has passed in Vermont and now San Francisco, requiring certain organizations to seriously consider employee’s requests for a flexible work schedule. The most recent legislation around flexible scheduling passed just last month on October 8th 2013 in San Francisco. The Family Friendly Workplace Ordinance (FFWO) will become operative on January 1st 2014, and mandates that employers with twenty or more staff give employees in caregiver roles the right to request a predictable or flexible work schedule. To qualify an employee must have worked for the organization for more than six months, work at least eight hours a week on a regular basis, and be a caregiver for a child or children under the age of 18, a parent(s) over the age of 65, or a person(s) with a serious health condition in a family relationship with the employee. If an employee meets these standards they have the right to submit a request for a flexible schedule and their employer is required to meet with them within 21 days. The employer is required to respond to the request within 21 days of their meeting and if the employer denies a request they must explain the denial in a written response that sets out a bona fide business reason for the denial and provides the employee with notice of the right to request reconsideration.

Legislation like this raises a whole new set of questions around flexible scheduling policies. The San Francisco ordinance is positive in that it helps to protect employees against discrimination based on their caregiver status, however, at the same time, could you argue that legislation like this goes too far? Does it restrict an organization’s right to organize their business in the way they see fit, and most conducive to achieving goals? The FFWO could be positive in prompting employees that desire flexible scheduling policies to speak out – employees that may have previously felt afraid to voice such requests do to the bureaucracy of their organizations. But what will the effects be on organizations that have never implemented flexible scheduling policies? Will the ordinance cause a roadblock and additional internal conflict? These are some of the top questions that come to mind as I consider the implications of flexible scheduling legislation. What do you think?

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Filed under China Gorman, Data Point Tuesday, Employment Data, Great Place to Work, Great Place to Work Institute, HR, SHRM, Statista, Workflex

A New Chapter Begins!

Great Place to Work® Institute Names China Gorman CEOGPTW Logo

SAN FRANCISCO – September 10, 2013 – 

Great Place to Work® announced today the appointment of China Gorman as Chief Executive Officer.

“China Gorman is uniquely qualified to take the helm at Great Place to Work, leading both the US business and affiliate network around the world,” said Robert Levering, co-founder of Great Place to Work.  “She knows the HR consulting industry, inside and out. Her leadership style relies on building trust, which we know is essential for the success of any business.”

Levering, who assumed the interim position of Chief Executive Officer earlier this year, will continue on as an advisor for several months, onboarding Gorman, and providing support to the Global Affiliate Headquarters team.

Most recently Gorman has operated her own independent consultancy, CMG Group.  Previously, she held COO and interim CEO positions with the Society for Human Resources, the world’s largest professional association for human resource professionals.  She also led LHH, a global Human Capital Management consultancy.  Gorman writes a popular HR Data blog series at chinagorman.com

“My lifelong aspiration has been to work in and lead organizations with a mission to make a difference in the world and the lives of individuals, and so feel a special kinship with Great Place to Work’s mission to build a better society by helping companies transform their workplaces,” said Gorman. “I am honored to be joining the Great Place to Work team members around the world who are living this mission every day.”

Gorman holds a BA from Principia College and lives together with her husband in Las Vegas, NV.  She assumed her duties on September 9th, in San Francisco Headquarters.

About Great Place to Work

Great Place to Work® is a global consulting and management training firm specializing in workplace excellence and development of high-trust organizational cultures. Its proprietary research tool, the Trust Index© Employee Survey is taken by over 10 million employees in 45 countries annually. Leading companies worldwide apply its Model® to increase the levels of trust across their organizations and drive business results. Annually, Great Place to Work® produces the annual FORTUNE 100 Best Companies to Work For® list and the Great Place to Work® Best Small and Medium Workplaces list.  Follow Great Place to Work® online at www.greatplacetowork.com and on Twitter at @GPTW_US.

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