An HR Manager’s Formula for Landing on a “Best Places to Work” List
“Best Places to Work” lists, like the ones compiled by Forbes and Fortune 100, give an organization bragging rights. Making one of these lists, whether by employee, peer or customer nomination, can demonstrate competitive differentiation, marketplace dominance and positive company culture. For Human Resource (HR) managers, these accolades can also be a persuasive recruiting tool that turns a job prospect into an employee.
Earning recognition on a “Best Places to Work” list requires that HR teams show the world what makes them great with definable workforce metrics. To help land their company a spot on a “best” list, here are the four HR formulas that will get them there.
(Separations ÷ Employees x 100) = Turnover Rate
Talent turnover is one of the greatest expenses for any organization and one of the greatest indicators of organizational health. A revolving door costs an organization roughly 33 percent of a person’s salary, but the damage to morale and brand loyalty can be much pricier.
When talent separates from an organization, the risk to the organization increases in terms of lost expertise and productivity and the absence of employees can deteriorate goodwill. One way HR managers can demonstrate improving company health, is a low and reducing turnover number.
When the turnover rate decreases, this metric can be then leveraged to show a content and happy workforce. This success can then be communicated internally, as well as to peers and industry influencers.
(>72% Positive Sentiment) = Engagement Score
Poor workplace culture is one of the leading causes of turnover, costing businesses $223 billion over the last several years. Conversely, positive workplaces are more productive. In fact, company culture is so critical to business success that most “best places to work” lists give a lot of consideration to answers related to programs and practices.
Is your organization doing something exceptional for employees and the community? Are there innovative programs, new training and education classes, or opportunities for advancement and socialization? If so, shout about it.
Help your organization communicate the way it defines company culture by participating in engagement surveys. A survey of five-point engagement questions will identify areas for improvement. Repeating the survey every 6 months will allow HR managers see positive change. A score of 72 percent or greater means employees average 3.6 out of 5.0 on a survey of five-point scale questions.
If asked the value of engagement surveys, most quote the well-known example of Best Buy. According to the Harvard Business Review article, a 0.1 percent increase in its engagement score led to a return of $100,000 per shop for the electronics retailer.
(Promotions ÷ Employees x 100) = Promotion Rate
Promotions are not only good for the professional in terms of greater responsibilities, perks and salary, but they can be used to demonstrate that an organization is employee-centric and cares about career longevity. Some organizations will issue a press release or a congratulatory announcement on LinkedIn when an employee takes on a new role.
(Sum of Tenures ÷ Employees) = Average Tenure
Happy employees want to work — and they tend to stay at their organizations longer. Companies are quickly judged based on average tenure. CEOs brag about still having employee number four. To keep employee number four around, HR must ensure employees’ goals are being met.
To keep this metric high, facilitate discussions to ensure employees’ professional goals align with their job duties. Advocate for advancement and find opportunities for training, continuing education and recognition. Employees who feel their voices are heard are more likely to be satisfied with their job experience — and want to stay.
When HR teams focus on a few key formulas that make a company competitive and relevant, they are helping the organization best position itself for success — and earn a spot on one or more of the prestigious “best places” lists.