The Business Case for a Winning Workplace

There are at least eight specific ways in which being a good place to work contributes to increased profitability and growth:

1. Improved Customer Service and Loyalty
Satisfied employees deliver higher levels of customer service, resulting in greater customer loyalty and higher profitability.

2. Higher Productivity
Employees in good workplaces are more “engaged”—that is, they have a higher level of emotional investment in their work and in the success of their employer. As a result, they work longer, harder, and more efficiently; display greater creativity and innovation; are more adaptable to organizational change; and function better as part of teams.

3. Ability to Attract Top Talent
Companies with superior workplaces receive significantly more applications for employment than do companies that are not good places to work. As a result, good employers are considerably more likely to be able to attract high-caliber talent, including potential “difference-makers” who can often significantly improve a company’s success and bottom-line.

4. Decreased Turnover
Companies that are good workplaces have significantly less employee turnover. For example, over the past five years, the voluntary turnover rate of companies on Fortune’s “100 Best Places to Work” list was approximately half that of comparable S&P 500 companies.

5. Decreased Absenteeism
Employees in superior workplaces are significantly less likely to miss work than are employees who work in average or below-average workplaces. For example, a recent Gallup study revealed that employees who were “actively disengaged” from their work missed 150 million more work days per year than did employees who were engaged at work.

6. Decreased Risk of Adversarial Labor-management Relationships
Companies that are good workplaces are significantly less likely to experience adversarial labor-management relations.

7. Decreased Risk of Employment Litigation
Companies that are good workplaces have a significantly lower risk of employment litigation, including discrimination charges, contract suits, and other claims, than do companies that are not considered good places to work.

8. Decreased Health Care Costs
Research demonstrates that employees in good workplaces have significantly lower levels of job stress. This contributes to lower utilization of health insurance benefits, particularly for conditions that are contributed to by stress, such as hypertension, diabetes and other chronic diseases.

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