What Makes a Great Place to Work?
Organizations recognized as a "Great Place to Work" are not just profitable; they are also highly innovative, attract the best talent, and maintain lower staff turnover than their industry peers. The leadership within these companies cultivates an environment where excellence thrives. By adopting their strategies, you can begin to transform your own organization.
Here are four actions inspired by the leaders of companies that employees love.
1. Prioritize Strategic Talent Management
Leading companies understand that their employees are a high-value corporate asset. Finding, nurturing, and appreciating this talent is fundamental to their business model. Facebook, for example, has engaged in "acqui-hiring"—acquiring a business as much for the talent within it as for the company itself.
This focus has led to the creation of roles like the Global Head of Employee Experiences at Airbnb, signaling a cultural shift. Top organizations actively design workplace experiences that empower employees, which in turn enhances productivity and retention. Key efforts include:
- Inspiring Work Environments: Creating a setting where talent can thrive.
- Outstanding Perks: Many companies offer generous benefits, from unlimited sick days and matched 401Ks at Facebook to gym memberships and free lunches at Zillow.
- Engaging Activities: Social functions, yoga, on-site gyms, and even pet-friendly policies (like at Airbnb) help foster engagement.
Given that Gallup polls indicate 51% of U.S. employees are not engaged, there is a clear opportunity for many companies to improve in this area.
2. Build a Transparent, Mission-Driven Culture
While perks are beneficial, top talent desires more. The best companies treat their staff with the same respect they want them to show customers. They have missions and values that are actively demonstrated, not just written on a noticeboard.
Airbnb, for instance, designs its culture around its mission as a travel company, creating a workplace that feels like an extension of a home where employees feel like guests. Key practices include:
- Thorough Onboarding: Facebook uses a six-week boot camp to immerse new hires in the company culture.
- Open Communication: Airbnb holds globally streamed meetings every other Tuesday, and Google prides itself on being highly interactive.
- A Focus on Values: Guidewire fosters a meritocratic culture that respects smart, motivated people. Most leading companies emphasize work-life balance, family orientation, and open, honest communication.
3. Foster a Collaborative and Inclusive Structure
The traditional top-down, command-and-control model is being replaced by collaborative, values-driven work. Millennials, in particular, seek work that has a tangible impact and offers opportunities for personal growth.
A corporate structure that minimizes red tape and rigidity encourages employees to take calculated risks and seize opportunities. This flexibility allowed Facebook to pivot quickly to a mobile-first strategy when the market shifted. Hallmarks of this structure include:
- Autonomy and Trust: At HubSpot, small development teams define their own goals and milestones without a rigid, predetermined process.
- Internal Mobility: Facebook’s "Hackamonth" allows staff to choose their next assignment and experiment in different work areas, promoting self-directed growth.
This level of autonomy is a significant draw for employees who may not find such opportunities in larger, more traditional corporations.
4. Develop Inspirational Leadership
According to a Talented Heads survey, millennials crave inspiring leadership and positive morale. At leading firms like Bain & Company, leadership skills are categorized into two distinct but complementary sets: performance and inspiration.
Performance skills are the traditional, more easily defined aspects of management. Inspirational skills—the ability to motivate, create engagement, and connect meaningfully—are more complex but equally vital. These "soft skills" have historically been underweighted, but top companies are now proactively investing in building them. Leaders are encouraged to:
- Serve as authentic role models.
- Invest in the professional and personal growth of others.
- Inspire their employees through a shared mission.
By embracing these four complementary areas, any organization can take meaningful steps toward earning more positive feedback from its employees and becoming a truly great place to work.