Are You Best in Class?
The Best Employer organisations, be they in the private or public sector, are always “best in class” in terms of performance (Hewitt Associates). Here are some of the key characteristics of Best Employers:
1. Best Employers attract and retain employees, resulting in significantly lower levels of employee turnover—40% lower in Asia, 45% lower in Australia, 54% lower in Canada, 30% lower in Europe and 50% lower in USA.
2. Best Employers have nearly double the number of applications per position than other organisations. Scott McNealy of Sun Microsystems estimates that being a Best Employer is worth $75 million annually to his company in recruiting, retention, and productivity gains.
3. Best Employers have faster revenue growth. Among the data collected in the Best Employer surveys is each company’s financial information for the last three years. Using these numbers, it has consistently been found that the Best Employers exceed the rest in revenue growth, year after year. For example, in 2003, the Best Employers attained 17.3% revenue growth compared to 10.73% for the rest.
4. Best Employers have higher levels of productivity. Revenue per employee is consistently higher in the Best Employers. Breaking down the revenue per full‐time employee shows that companies considered the Best are able to achieve higher levels of employee productivity.
Performance of best employers in Australia and New Zealand (BEANZ)
A study of 163 organisations, carried out by Hewitt Associates and Barrett Values Centre as part of a recent Best Employer study in Australia/New Zealand, showed that:
Cultural alignment and cultural entropy significantly influence employee engagement, and employee engagement significantly influences organisational and financial performance.
The findings of this study confirmed that the degree to which employees are aligned with the values of the current culture has a significant impact on financial performance. The study found a strong correlation (0.8) between cultural entropy and employee engagement.
The values that were present in the best employers in Australia and New Zealand, and not in the worst, were all values that reflected a positive employee experience— employee recognition, teamwork, coaching/mentoring, and balance (home/work).
Confidence TipEmbrace comprehensive staff engagement as organisations with high levels of cultural alignment experience enhanced levels of financial performance.