Importance of Team Building

Our staff gets asked this question a lot by small business leaders: What is a short list of things I can implement to create a winning workplace?

Based on the latest information we have on some of the top-performing, most innovative, bad-economy-bucking small firms – our initial data review of the 15 Top Small Workplaces as judged by Winning Workplaces and The Wall Street Journal (the names of which will be announced in the Journal on October 13) – I wanted to provide you with a short list.

Two big disclaimers, though: The following practices and programs require a long-term focus and the commitment of leadership to have a shot at succeeding. And second, this is certainly not meant to be an all-inclusive list. Rather, these are some of the marked characteristics we've noticed as we start to profile this year's winning firms.

Try to ensure stable leadership: Average CEO tenure of the 2008 winners is 17 years.
Allow employees to own company stock. Owning more stock collectively than the CEO is OK – among the winners, on average employees own 47% vs. 37% for the CEO.
Provide generous medical benefits: On average the winners pay nearly 90% of employees' premiums and 72% for dependents.
Provide generous time off/paid holidays. The winners provide 26 days off per year on average.
Provide tuition assistance. The winners provide an average of $3,400 per year per employee.
Offer some or all benefits to part-time employees as well. You might choose, as the winners do on average, an eligibility requirement of 21 hours in order to receive benefits.

OK. You are probably saying, "The last 5 items on your list are going to cost me big. What's the ROI?" Glad you asked! Our analysis of this year's Top Small Workplaces reveals that the above characteristics helped yield the following results:

Long operational tenure – average of 42 years in business
Strong annual revenue – average of $36 million
Strong revenue growth rates – 23% over the last two years on average
Low turnover – 13% on average across a full spectrum of industries
High employee tenure – average of nearly 6 years

Need more justification to start using or building upon these proven employee engagement best practices? Get it from the source: the leaders of the 15 winning firms for 2008. Make plans today to attend our Top Small Workplaces Conference in mid October, where leaders of these and other exemplary small organizations will gather to network, learn from each other, and gain insights on pressing issues affecting their business.

Comments for Six Characteristics of a Winning Workplace and Their ROI

Monday, July 21, 2008 by Rob:: I think this is interesting, especially if you own a service business. Service is all about people and if there is a way to lower the turnover and improve employee moral, it will good for the customers and good for the business. It seems logical that revenue growth will follow. In a competitive service business (and what successful business lacks competitors?) having fully engaged and positive front line employees is really the best way to keep customers happy. If a business owner can create a culture that promotes engaged and positive front line employees, its got to be a winner, and it seems the research bears this out. Rob
Monday, July 21, 2008 by Mark:: Thanks for your comment and bringing up the point on improved customer service, Rob -- something not quantified in our initial research, but for which a correlation certainly exists. Maybe one of our past winning firms could speak to that?