The latest research has found Great Workplaces based on positive people practices create a buffer against economic storms. According to research just released by GreatPlaceJobs, the leading job search platform and networking community helping job seekers connect with positions in award-winning organizations, has quantitatively linked Great Workplaces as business powerhouses even during an economic crisis. The GreatPlaceJobs Great Workplace Employment Study shows it makes prudent financial sense for leaders to adopt, model and promote positive people practices in their company.

Our good friend and business affiliate, Asher Adelman, president of GreatPlaceJobs, recently released nationwide the findings of their groundbreaking research. “The study shows that top-ranked Great Workplace employers are much more recession-proof than the average company, having conducted layoffs at a rate of less than half that of companies in general,” said Adelman, founder of the leading job search platform and networking community for Great Workplaces.  Adelman also stated, “The last thing a job seeker wants is to be hired by a company that ends up having to lay off workers a few months later.”

According to the GreatPlaceJobs press release, companies that have been recognized as great workplaces conducted far fewer layoffs than a general sample of companies.  Only 35% of excellent employers conducted layoffs in 2008, as opposed to a shocking rate of 73% of regular companies.  In addition, the revenue growth rate at great workplace companies in Q3 2008 was 27.4% higher than their competitors, and the average stock price of the excellent employers was close to 10% higher at the end of 2008 (compared to the beginning of 2008) than that of their competitors.

SUMMARY OF FINDINGS

• Layoffs: Fortune’s 100 Biggest Companies had more than double the number of layoffs vs. the Fortune 100 Best Companies to Work For in America.
• Bankruptcies: Nine bankruptcies or bailouts in the 100 Biggest; none in the 100 Best Companies.
• Revenue growth: Less than 3% at the 100 Biggest Companies; Almost 30% at the 100 Best Companies.
• Share Prices: While both groups’ share prices dropped in 2008, the drop was nearly 10% more in the 100 Biggest.

If you are interested in more information, here is the link to the press release.

What are your thoughts about this latest research?

The benefits of creating a Great Workplace cannot be more evident than when the economy turns south.  The U.S. and World economies are subject to cyclical movements in both positive and negative directions.  It is a given; there will be periods of growth and expansion, and conversely, there will be periods of restriction and conservation. We know with certainty that each cycle, and the period in-between, is coming.  Companies ride high during times of expansion, growth and spending, and hunker down during the slow, restricted and conservative economic periods.

Unfortunately, the companies who live in a short-term world and do not develop a long-term Great Workplace strategy will eventually succumb to the enemy of average and/or economic conditions.  At best, they are only prepared for economic high times.  The moment trouble comes, however, these ill-prepared organizations eventually close their doors.

On the other hand, companies who have conscientiously developed Great Workplaces where people thrive are prepared for both sides of economic weather conditions.  They ride the waves when they are high, taking advantage of all the good momentum.  And when economic conditions turn bad – and they will – companies with great work environments seem to ride out the storm in a calm and collected fashion; even picking up business from alternative sources, adding new clients, capturing untapped markets, pulling in revenues from varied sources and innovating their way out of an economic disturbance.

Why do companies with Great Workplaces survive economic storms?

The people inside Great Workplaces make the difference because their company truly cares for them by creating a sustainable, flourishing culture.  As a result, a majority of their energized employees are engaged and running on all cylinders. The benefits of creating a Great Workplace are numerous.  As chairman of the board, CEO, business owner or start-up entrepreneur, the proven benefits of building a Great Workplace will likely make your company a powerful force even in the most difficult of times.  Why? The benefits of creating a Great Workplace have been researched and proven by the Great Place to Work Institute:

• Higher productivity
• Higher profitability
• Better customer satisfaction
• Lower staff turnover rates
• Greater number of applicants for open positions
• Attraction of the best and brightest talent
• Less resistance to change
• Lower health care costs
• Lower workers’ compensation costs
• Lower absenteeism rates
• Lower presenteeism rates
• Higher levels of cooperation
• Higher quality products and services
• Increased innovation and risk taking
• Higher returns to stockholders

When you build a winning team with a great work environment, employees will take care of business during both good and bad times. It is a winning formula for building a long-term, growing and profitable organization.

The Good News

It is never too late to begin the process of building a Great Workplace.  Any company can get there from where they are today as long as the top business leader is the one leading the charge.  It is better to invest your time and resources to develop a Great Workplace and survive an economic storm than to carelessly leave your company culture to chance and file Chapter 11 when the next storm blows in.

During the recruiting process, Mr. Iam Screwed was given an impressive tour of eVille Unlimited’s headquarters, and he was absolutely ecstatic.  A dream job come true, eVille Unlimited had highly recruited Mr. Iam Screwed.

As he toured the extensive headquarters facilities, their professional employees were friendly, helpful and motivated. Plus, the campus included all the latest perks, including a gym, spa, doctor’s office and hair stylist, dry cleaners, restaurants and concierge services, just to name a few.  His potential new boss, Ms. Dee Generate was smart, open, cordial and answered all his questions with utmost patience.  He accepted their generous job offer later that week.

Leaving a very good job, Mr. Iam Screwed showed up two weeks later for his first day at corporate paradise, eVille Unlimited’s headquarters, only to find the workplace in shambles.  The environment was chaotic and cluttered with employees yelling at each other, and many of the elaborate on-site perks closed.  As he approached the receptionist, who now had the appearance of the ghost in The Grudge, a terrible, sickening feeling was oozing all over him.  When Ms. Dee Generate, his new boss, appeared in a red pant suit with a pitchfork and horns protruding from her forehead, he realized he had made the biggest mistake of his life.

Changing jobs should not be so scary.

Seriously, remember what it was like to change jobs and begin learning the behavioral norms of the new company?  Do you recall learning the management style of your new boss?  Adjusting to the new company culture?  Discovering who possessed the real political power?  Were you a little nervous you might uncover something terrible you didn’t discover during the interview process?  Like your new boss was Satan?  Or your new company was a front for Hell?

Thanks to a new career site, GreatPlaceJobs.com, unfortunate first day scenarios like the one above can be avoided because the only companies who are allowed to post jobs on this site are officially recognized great workplaces.

According to Asher Adelman, founder and president of eBossWatch.com and creator of GreatPlaceJobs.com, “Only companies that have been recognized as a great workplace and have received one of the prestigious best employer awards are eligible to list their jobs with GreatPlaceJobs.com.”  To further clarify the quality of the companies on his website, Adelman stated “excellent employers are those that are successful in providing their employees with satisfying careers, a positive and pleasant work environment, and good compensation and benefits packages.”

As one who promotes positive people practices through the many services provided by The People Group, I highly recommend employers who qualify and employees who would like to work for the best companies, visit the site and sign up for their services.  My congratulations to Asher Adelman and his team!  Keep up the great work!