Becoming a
Best Place to Work
WHITE paper | Business Development
WHITE
paper
Business Development Series
Contents
Becoming a Best Place to Work.....................2
What Employees Look for
in an Employer......................................................2
Benefits of Being the Best...............................4
How to Get There................................................4
Conclusion.............................................................5
Visit therightbank.com to view all Pacific Continental Bank white
papers in the Business Development Series:
• The Importance of Corporate Social Responsibility
• Recruitment and Retention: Tactics to Enhance Business Development
• Cultivating Leadership for Business Success
Pacific Continental Bank white papers in the Risk Management and
Nonprofit Series are also available at therightbank.com.
Becoming a Best Place to Work
Ask any business owner or manager to name the
company’s most valuable asset, and there’s an
excellent chance the response will be “our people.”
Most organizations recognize that their people
are invaluable, and savvy business executives
understand the correlation between happy, satisfied
employees and healthy profit. Additionally,
employees who enjoy their jobs tend to be good
advocates who significantly facilitate a company’s
recruitment process, particularly as the job market
becomes increasingly competitive in the improving
economy. A reputation for being a great place to
work can differentiate your company from others
and bring top talent knocking at your door.
attainable features that companies large and small
should consider if they want to build morale and
enjoy the advantages of being considered a great
place to work.
What Employees Look for
in an Employer
A common misperception is that employees place
the highest value on wages and benefits (paid
time off, health insurance, etc.). These are
important, but equally as important — sometimes
more so — are other, less material aspects of the
workplace. Daniel H. Pink, author of “Drive,”
describes these intangibles as “intrinsics” and
the more traditional, tangible aspects like wages
and time off as “extrinsics.”
Employees are motivated by
both intrinsics and extrinsics,
Knowing the things
although business owners
your people truly
and managers often consider
intrinsics less important or
value is critical if
dismiss them altogether.
It’s the companies with a
competitive edge in the labor
market and strong productivity
and profit that tend to be
featured on “best places to
work” lists. There are many
opportunities for a business
you’re sincere about
to enter these competitions
However, research repeatedly
providing what’s
nationally, regionally and
confirms that people highly
needed or preferred.
locally. Giants like Google and
value intrinsic features. A
Intel have repeatedly appeared
study originally conducted by
on Fortune magazine’s list of
the Labor Relations Institute
100 Best Companies to Work For. More than 25
of New York in 1946, and followed by similar
percent of Fortune 200 firms allocate funds each
studies in the 1980s, 1990s and 2000s, consistently
year to maintain their rank on such lists because
revealed that employees appreciate the emotional
they understand the inherent value in being known
aspects of their workplaces just as much as their
as a great place to work.
financial compensation. Understanding what
This status isn’t limited to large companies offering
six-figure salaries, ping-pong tables or on-site
car wash services. Smaller firms, such as virtual
receptionists company Ruby Receptionists in
Portland, Ore., are repeatedly recognized for
creating exceptional work environments. While
there’s no doubt that tangible perks like games and
free services contribute to a positive and rewarding
workplace, employees value many other intangible,
people want in their jobs may be one of the biggest
challenges to becoming a great workplace. True
understanding comes from asking questions of
employees and actively listening to the answers.
It’s risky to make assumptions instead of talking
with workers directly to learn what’s important to
them. Knowing the things your people truly value
is critical if you’re sincere about providing what’s
needed or preferred.
2
Here are some of the intangibles that often emerge
during the discovery process:
a culture that respects employee input above all
else. Employee innovation and strategic risktaking are not just encouraged, they are expected.
One of the results, according to Bell, is a work
environment that exudes high energy and personal
ownership. Most people agree that few things
are as motivating and rewarding as knowing
the boss has confidence in their ability to make
independent decisions and control the way a job
is completed.
• Conducting meaningful work. Everyone wants
to feel the work he or she does makes a difference.
At Ruby Receptionists, employees are empowered
to be helpful and kind to every caller. Founder
and CEO Jill Nelson says that when a member of
the firm’s staff makes someone’s day just a little
bit better, it gives that employee
a sense of purpose. According to
the Gallup organization’s research
Talented workers
to identify the elements of worker
increasingly
engagement, “The best workplaces
seek employers
… enable [their employees] to
make a difference.”
committed to
• Being recognized. Your
work/life
employees almost certainly place
high value on having their work
appreciated and recognized. The nature of such
recognition is unimportant; a simple “thank you”
is often just as effective as a formal award or a
public announcement. At Portland, Ore., based
Digital Trends, CEO Ian Bell says his company
works hard to consistently reward positive
behaviors. According to Bell, the company
recognizes individual contributions as well as team
successes, using gift cards or giving praise during
a company meeting to support and celebrate
employees helping one another.
• Being in an inclusive, empowering work
environment. As employees, all of us want to
be included. Most workers commit significant
time to their employers. The desire to give
input on changes in policy or new initiatives is
not surprising. Empowering your staff further
enhances the sense of inclusiveness.
• Having responsibility and autonomy. You send
a powerful message of trust by giving employees
both responsibilities and the autonomy needed
to fulfill those responsibilities. At Digital Trends,
Bell has worked with his leadership team to foster
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While these intrinsics are
rooted in behavior and emotion,
extrinsics — the tangible elements
of employment — are more
substantive and measurable. They
include elements such as good
balance.
compensation packages with wages
and benefits or opportunities to
learn new skills and grow into
more advanced positions. Although intrinsics are
often rated most important, surveys conducted by
the Labor Relations Institute and other researchers
consistently place growth opportunities on lists of
top employee preferences.
A company’s management team has a significant
impact on the work environment. Great workplaces
are typically characterized by managers who
are fair and supportive. Consistent, effective
communication is critical to maintaining a culture
that embraces every employee. You may find that
open-door policies, regular team meetings and oneon-one exchanges will lead employees to speak freely
and confidently.
Additionally, today’s workplace is vastly different
from even 10 years ago. Talented workers
increasingly seek employers committed to work/life
balance. Best companies to work for frequently offer
flexible schedules, work-from-home options, and
opportunities for employees to engage in corporate
social responsibility and other similar initiatives.
Embracing employees’ values brings value to
your company.
Benefits of Being the Best
Recognition as a best place to work offers your
company definite business benefits. These are welldocumented by the Great Place to Work Institute,
a research and management consultancy that has
evaluated employers and workplaces since 1980. It
has found that great workplaces experience less
turnover, achieve better financial performance, are
contacted by more qualified job applicants, and
enjoy improved track records in safety and other
important metrics. Consider the following:
• Less turnover. When people enjoy working for a
company, they are less likely to voluntarily leave.
And when you have less turnover, your reputation
among current and potential employees, clients
and peers improves.
• Reduced recruitment costs.
In 2012, the Center for American
Progress looked at 31 case studies
related to employee turnover and
found that the average business
spends about one-fifth of an
employee’s annual salary to fill a
vacated position. Best places to
work have less turnover, resulting
in lower recruitment costs.
is the ability to attract top talent. SAS is one of
the world’s largest software analytics companies.
The firm’s culture values employees over customers
and owners, and emphasizes trust, generosity and
work/life balance. SAS was named the world’s best
multinational workplace by the Great Place to Work
Institute in 2012; SAS now receives approximately
100 applications for every job opening.
• Enhanced achievement of higher-level goals.
When you combine the aforementioned benefits
of less turnover and more qualified employees
with higher productivity rates, it’s more likely
that your firm will reach — or even surpass —
important milestones. Ruby Receptionists, which
has been on multiple best workplaces lists, grew
to more than $11 million in annual revenue in
just 10 years and now has clients in
every state except South Dakota.
Great workplaces
experience less
turnover, achieve
better financial
performance and
are contacted by
more qualified job
applicants.
• Greater productivity. Most
business leaders know engaged
employees are productive
employees. One way to tap into this engagement
is through the ROWE program — Results-Only
Work Environment — which lets people set their
own work hours. Companies utilizing ROWE
report productivity increases of up to 35 percent.
Online auto source Edmunds.com adopted
ROWE in 2012, and in 2013 was named one of
the top 20 best places to work in Los Angeles by
the Los Angeles Business Journal.
• Competitive advantage. An often-overlooked
benefit of being known as a great place to work
These are enticing benefits for any
business and ultimately drive more
profit and success.
How to Get There
Becoming a sought-after employer
or the honoree of a “best places
to work” award is a worthy goal
with significant business rewards,
but getting there isn’t always
easy or fast. A business leader’s
first decision involves commitment. Building the
culture that leads to a desirable workplace requires
time and a genuine belief that employees really are
the company’s most valuable asset. Once you’ve
made the commitment to create a truly great
workplace, start by ensuring your business has a
clearly articulated mission and vision statement.
Mission and vision define the very essence of a
company — they are the “who we are” and “why
we’re here” cornerstones that drive both shortterm and long-term goals. Most important, they
give existing employees a sense of purpose and
4
communicate values to prospective employees. Ruby
Receptionists’ Jill Nelson explains that the company
is very clear about its culture and recognizes that
the organization isn’t for everyone. The company’s
recruitment motto is, “If making another person’s
day makes your own day, we want
to hear from you.”
The process of building a great
workplace is similar in many
ways to corporate branding; the
goals should fully support the
company’s brand, which will
influence employee attitudes and
perceptions. A “best place to work”
company with a strong corporate
brand will likely experience
enhanced success in attracting
and retaining workers who share
the company’s values.
Becoming a
sought-after
employer means
staying on top of
general business
and industry
practices as
well as emerging
social trends.
Finally, becoming a sought-after
employer means staying on top
of general business and industry practices as well as
emerging social trends. Continuous advancements
in technology drive perpetual change in today’s
world. That change can impact employer and
employee expectations in ways that alter your
company’s work environment. For example, the
5
issue of constant connectedness (handheld devices,
social media, etc.) has led to generational divides
in some workplaces. Continue to have open
communication with employees to address such
issues and ensure values are being met.
Conclusion
Being recognized as a best place
to work can bring business
rewards like decreased turnover,
improved financial performance
and achievement of high-level
goals such as growth and market
expansion, all of which are essential
in today’s competitive environment.
Creating that environment means
understanding what workers really
want and remembering that people
are motivated by both intrinsic
and extrinsic factors. It will require
commitment, recognition that the
process takes time and the conviction that your
company’s workers are in fact your greatest asset.
The result will be a positive work environment that
everyone — including you — enjoys walking into
each day.
Sources:
2012 Best Small & Medium Workplace. Great Place
to Work, 2012.
http://www.greatplacetowork.com/best-companies/
best-small-a-medium-workplaces
Efron, Louis. “Six Reasons Your Best Employees
Quit You.” Forbes, June 24, 2013.
http://www.forbes.com/sites/louisefron/2013/06/24/
six-reasons-your-best-employees-quit-you/
Amabile, Teresa and Kramer, Steve. “Valuing Your
Most Valuable Assets.” Harvard Business Review,
October 10, 2011.
http://blogs.hbr.org/hbsfaculty/2011/10/valuingyour-most-valuable.html
“Feedback for Real.” Gallup Business Journal, March
15, 2001.
http://businessjournal.gallup.com/content/811/
feedback-real.aspx#4
“Ben Cohen & Jerry Greenfield: Caring Capitalists.”
Entrepreneur, October 9, 2008.
http://www.entrepreneur.com/article/197626
Boushey, Heather and Glynn, Sarah Jane. “There
Are Significant Business Costs to Replacing
Employees.” Center for American Progress,
November 16, 2012.
http://www.americanprogress.org/issues/labor/
report/2012/11/16/44464/there-are-significantbusiness-costs-to-replacing-employees/
Crowley, Mark C. “Why Companies Are (Finally)
Falling All Over Each Other to Become Best Places
to Work.” Fast Company, August 7, 2013.
http://www.fastcompany.com/3015323/whycompanies-are-finally-falling-all-over-each-other-tobecome-best-places-to-work
“Edmunds.com Named a Top Place to Work in Los
Angeles for Fourth Consecutive Year.” Edmunds.
com, August 21, 2013.
http://www.edmunds.com/about/press/
edmundscom-named-a-top-place-to-work-in-losangeles-for-fourth-consecutive-year.html
Hess, Alexander E.M., Satuer, Michael B. and
Weigley, Samuel. “Companies Everyone Wants to
Work For: 24/7 Wall St.” Huffington Post, November
10, 2012.
http://www.huffingtonpost.com/2012/11/10/bestcompanies-work-for_n_2101463.html
“Item 8: My Company’s Mission or Purpose.” Gallup
Business Journal, May 10, 1999.
http://businessjournal.gallup.com/content/505/item8-my-companys-mission-or-purpose.aspx
Pink, Daniel H. “The Autonomous Work Space.”
Forbes, April 29, 2010.
http://www.forbes.com/2010/04/29/best-buy-officeopinions-workspaces-daniel-pink.html
Ryan, Kevin. “Gilt Groupe’s CEO on Building
a Team of A Players.” Harvard Business Review,
January 2012.
http://hbr.org/2012/01/gilt-groupes-ceo-on-buildinga-team-of-a-players/ar/1
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About Pacific Continental Bank
For more than 40 years, Pacific Continental Bank has served the
Pacific Northwest with a focus on building long-term businessbanking relationships. And along the way, we have forged a strong
reputation as a proven business resource and proud civic partner.
Pacific Continental Bank’s strength lies in our extensive expertise in
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and the nonprofit sector. This expertise means we can help clients
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Pacific Continental Bank maintains a strong connection to the
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to actively engage in fostering an environment where all community
members can flourish. We endeavor to work with local nonprofit
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October 2013