首先是艺术。大量研究和证据都表明敬业的员工能塑造出快乐而且成功的企业。有爱心并且高度信任的公司文化，再加上目标感和明确感，一直都和强劲的收入与股价表现联系在一起。卓越工作场所研究院首席执行官迈克尔·C·布什及该机构研究团队在他们即将出版的新书《A Great Place to Work For All》中指出，龙头公司走在前列的原因是它们让所有员工都处于最佳状态，无论后者是谁或者在公司担任什么样的工作。布什等作者写道：“企业成功的基础是开发出人的全部潜能。我们的经济特色是连通性、创新以及热情、个性、合作等人的素质，在这里，每一位员工都很重要。”
凯瑟琳·吉本在全球指数提供商富时罗素担任高级产品经理。艾德·弗劳恩海姆是卓越工作场所研究院研究和内容主管，该研究院就100家最适宜工作的公司榜单长期和《财富》杂志进行研究合作。艾德还跟别人联合撰写了即将出版的新书《A Great Place to Work For All》。
We often hear that nice guys finish last, or at least that it takes a degree of ruthlessness to make it in corporate America. But a new analysis of the data shows that it might actually be the nice bosses who propel their companies to the greatest heights.
The latest edition of the annual Fortune 100 Best Companies to Work For list shows that it’s the companies that employees say are great workplaces that demonstrate stronger financial performance, reduced turnover, and better customer and patient satisfaction than their peers. The annual ranking, produced in collaboration with research and consulting firm Great Place to Work, is based on the most extensive employee survey in corporate America. Anonymous input from 315,000 employees on leader quality, support for professional and personal lives and colleague relationships comprise a Trust Index to compare organizations against peers. The companies that make the list are known for their employee satisfaction but, importantly, generate strong business performance year after year.
The outperformance is notable. Global index provider FTSE Russell—which annually analyzes the Fortune 100 Best Companies to Work For list—this year found that an equally-weighted index of the publicly-traded companies among the 100 best returned 11.66% annually from 1998 through the end of 2016, nearly 5% more than the equivalent returns for the benchmark US all-cap Russell 3000 Index (6.72%) and US large cap Russell 1000 Index (6.68%). How can an index outperform the market by 5% annually over nearly 20 years? We believe this can be attributed to art and science.
First, the art. A wide body of research and evidence supports the fact that engaged employees make for happy and successful companies. Caring and high-trust company cultures with a sense of purpose and clarity are consistently associated with strong revenue and stock performance. In their forthcoming book, A Great Place to Work For All, CEO Michael C. Bush and the research team of Great Place to Work argue that leading companies are racing ahead because they bring out the best in every employee, regardless of who they are or what they do for the organization. “Business success relies on developing all your human potential,” Bush and his co-authors write. “Every employee matters in an economy that is about connectivity, innovation, and human qualities like passion, character, and collaboration.”
Great Place to Work’s new methodology—baked into the rankings for this year’s Fortune 100 Best Companies to Work For list—rewards companies that create a consistently great culture across demographic groups and job levels. Bush and crew also have documented business advantages such as revenue outperformance for these new “Great Place to Work For All.” The way the 2017 Best Companies to Work For tap everyone’s potential may explain the bump in stock performance this past year.
The idea that “when companies take care of employees, employees take care of the business” isn’t new and may seem obvious to some. But as the Fortune 100 Best Companies to Work For show, it can play a critical role in performance. Don’t underestimate the power of culture.
Next, the science. When FTSE Russell creates its index of the publicly traded Fortune100 Best Companies to Work For, it has a stellar crop of companies to measure. And the 100 Best Index, a hypothetical index created by FTSE Russell specifically for Fortuneand Great Place to Work, is updated each year based on last year’s winners, ensuring it is continually refreshed with strong companies. Yet FTSE Russell takes its analysis a step further by equal weighting and quarterly rebalancing this hypothetical portfolio. Through equal weighting, all constituents are assigned the same index weight, regardless of market capitalization, to ensure that the largest companies don’t have an outsized impact on index performance. Quarterly rebalancing is a way to systematically re-weight the index to adjust for market performance.
Equal weighting with systematic rebalancing has historically delivered strong relative returns over time. In fact, when FTSE Russell performed an attribution analysis with the 100 Best Companies to Work For Index to determine the source of excess return over the broad market, 80% was due to the selection of the 100 Best companies but an additional 20% can be attributed to the equal weighting and quarterly rebalancing methodology of the index.
Investors can benefit from this simple formula. Bring together the art of recognizing cultures that are great for all their people, as well as the science of smart portfolio construction.
Catherine Yoshimoto is Senior Product Manager at global index provider FTSE Russell. Ed Frauenheim is Director of Research and Content at Great Place to Work, FORTUNE’s longtime research partner for the 100 Best Companies to Work For list. Ed also is co-author of the forthcoming book, A Great Place to Work For All.