What makes a workplace a great place to work?

Google and Microsoft come top of the “Great Place to Work” league published by the Financial Times. However, a number of smaller companies have made the list, providing an interesting insight into what makes a “Great Place to Work”, great.

More than 1,250 companies across Europe participated in the research, which showed that the 100 best companies are saving money on hiring and training, with a voluntary employee turnover of just below 8%. They also witness much lower absenteeism compared to their respective general labour markets, and all have shown increased revenue, with an average of 26% increase in the last year.

So what’s their secret? Microsoft, the winner of the “Best Workplace in Europe” award for large organisations, shows high levels of employee satisfaction across its 14 branches in Europe. Maintaining a core set of values through varied media, Microsoft has fostered an open, friendly culture, with CEO Steve Ballmer insisting employees call him “Steve”. Management around Europe maintain discussion with employees by writing blogs, and are frequently available and accessible.

The business is also open about salary and reward, giving all employees a bonus regardless of their position, and making everyone eligible for stock awards. They also ensure that men and women of equal rank are paid equally. Cultural innovations are also at the heart of the workplace, with “happy hours” hosted every second Friday of the month, where departments host a formal meeting with presentations, followed by food and drink. Indeed, many of Microsoft’s offices have game rooms and lounges with X-boxes and a range of video games.

But you don’t have to be big. Reaktor, winner of the small business category, said that they have never carried out any HR development activities. According to the Great Place to Work Institute, they “live and breathe” being a great workplace. Their employees work 7.5-hour days, and management “cherry-pick” clients according to how interesting they would be to work with!

Training is at the centre of Reaktor’s method. Employees train each other, and they place a high emphasis on maintaining high levels of technological expertise. New employees have paid testament to the company’s induction process, which aims to get the basics right – quickly. Even before their start date, they are given passwords to access the intranet and are invited to company events.

Like Microsoft, Reaktor insists on communication being key throughout the business, with online discussions and blogs supported by management and employees alike. Reaktor also supports its employees by getting them involved in industry conferences and events as guests and speakers.

Looking after your people comes in many forms in these excellent companies:
professional development, recognition, work-life balance with one company offering internet connections to allow mothers to work at home day per week, a month’s salary as a bonus to employees who get married, reward packages tailored to employee needs, generous contributions to retirement savings and pay life and disability insurance for all employees are just some examples.

Samoud fostered a core set of values: intensity, authenticity and friendship, and these values are promoted throughout the business – from posters to business cards. Even new recruits are evaluated on these values, and junior-level employees and assistants were sent on a “vision and personal development program”, to reflect on their personal vision and that of the company.

Promoting a “fun” culture was won by Google – with a number of enterprising initiatives throughout its offices around Europe. From dance competitions to treasure hunts and fun perks such as scooters, video games, lava lamps and hammocks, Google has created a campus atmosphere that has resulted in a high retention rate and increased productivity.

As all the award winners have demonstrated, creative thinking and solid core values are the key to engaging their workforce – and in all cases, the results are clear: lower absence rates and greater productivity. The question is, how can you make your workplace a Great Place to Work?

News & Comment

> Employment Tribunal Claims

A recent report from ACAS states that claims to employment tribunals have been reduced by 75% by their successful conciliation. However the number of claims to employment tribunals remains high. One factor which may help reduce those numbers is workplace mediation. ACAS found that only 7% of small business had used mediation believing that it was only for larger companies.

> Pensions

We should all have one but some of us just never quite get around to it – until it’s too late. Unfortunately 5,000 fewer people belong to a pension scheme than did in 2006 and the statistics show that the trend is continuing downwards. Although it is a requirement of employers to offer access to a scheme, less people are now joining scheme than ever before. If you are planning to have a comfortable standard of living after you retire, then contributing as much as you can afford, as early as possible, will help you achieve this.

Quote for September…

" In the business world an executive knows something about everything, a technician knows everything about something and the switchboard operator knows everything "
Harold Coffin

Sapience HR offers effective outsourced Human Resources and Personnel services and Consultancy so that companies have the right people and systems in place to achieve their business objectives.

© Sapience HR 2008