Winning Workplaces Update

Wednesday, November 9, 2011 by Mark Harbeke

updateAfter careful consideration, Winning Workplaces has concluded that it will not be carrying out the 2012 Top Small Company Workplaces competition with Inc. Magazine.  In 2010 and 2011 we collaborated with Inc. on this recognition project honoring small and midsize organizations that use exemplary employee engagement and team building strategies to create more productive workplace cultures.

We are taking a step back and retrenching over the next few months while we work to redefine our major activities that will lead us to sustainability for the next decade.

If you have any questions, please contact either Nuala Novak or Ken Lehman at info@winningworkplaces.org or via phone at 847-328-9798.  Thank you.

Promoting Good Communication in the Workplace

Friday, September 30, 2011 by Mark Harbeke

Good team building -- and better productivity for your business -- are dividends of stronger workplace communication.In the following guest post, Elaine Hirsch shares effective communications team building strategies and why they're both good for workers and help create a more productive workplace.  Enjoy!

Managers spend 75 to 80 percent of their jobs engaged in some form of written or oral communication.  Two thirds of all salaried employees have some type of writing responsibilities, and nearly 80 percent of companies assess writing skills prior to hiring an employee.  However, many managers and CEOs don't utilize this tool effectively.  Perhaps it's because they lacked something in their education, such as going to school online and not talking aloud, but judging by the focus on communication, the success of a company may depend upon employees' ability to communicate productively.  Here are some helpful tips to improve communication in your company.

Why is Good Communication Important?

Idea Generation, Product Development, and Sales.  Studies have shown collaborative environments with open communication are more successful than organizations where ideas aren't valued or communicated.  These companies' products and services are profitable and make a difference in the lives of their customers.  Articulation is instrumental in conveying complex ideas and producing innovative products.

Motivational communication is also critical in convincing coworkers and upper management to embrace an idea.  Before a product may be sold to the public, it must first meet the needs of people within the organization.  If coworkers aren't convinced the product will be successful, then the product will probably not sell to the general public.

Motivate Employees.  Good managers can motivate employees to improve and perform well even during difficult times.  When the company is going through management changes, reorganization, or bankruptcy, managers can motivate employees by keeping them in the loop.  This encourages employees to feel a sense of ownership of the company and give extra effort if they are motivated through effective communication and incentives.

Conflict Resolution. When conflict arises between coworkers, active listening and communication become invaluable.  Communication in situations of conflict requires tact, patience, and the ability to negotiate possible solutions.  When the environment is tension-filled and people are afraid to communicate with upper management and other employees, the company becomes ineffective.  Good ideas that could potentially be lucrative are lost because of the lack of communication.

Misunderstandings.  Simple misunderstandings may erupt into full-blown arguments if communication isn't encouraged.  Many people allow issues to fester rather than tactfully addressing them with the other person.  Polite directness will diffuse the misunderstanding and help both parties work towards a solution.

Which Communication Modality is Most Effective?

Both written and oral communication skills are essential in any workplace for different circumstances.  Employees must be prepared to communicate effectively regardless of the modality.  In some situations, face-to-face communication is necessary.  An employee may have an idea and only a few minutes to pitch it to a senior manager in the elevator.  The company may also hold a conference to communicate ideas in person rather than through written correspondence.

Written communication may be required when documentation is needed of the conversation.  If there's any concern the recipient may misplace or forget what you need to convey, written communication is best.  Printed materials may be preferable when visuals are needed to convey your point.

Tips for Effective Communication

Use Audio-Visual Aids.  As the old adage goes: "A picture is worth a thousand words."  A chart, pie graph, or other visual representation can greatly augment the effectiveness of a presentation or explanation.  The less an audience has to puzzle over your ideas, the more readily they can understand their value.

Ask Rather than Blame.  If you suspect coworkers of unpleasant behavior, bring it up with them and ask about the situation.  Present the evidence that led you to believe they may be involved in the behavior and listen to their response.

Actively Listen Before a Response.  After a confrontation, listen to the other point of view.  Make note of key points without interrupting the response.  Incorporate those points in your reply to show that you acknowledge the other point of view.

Focus on the Positive Rather than the Negative.  Always try to note a positive before addressing the negative.  This will show others you value some aspects of their behavior in cases of criticism.

Keep the Conversation Brief.  Set a time limit on each response or rebuttal to give each side the opportunity to respond and make a point.

Communication is essential to any environment.  Employees who follow these tips will promote effective communication in their workplaces, much to their own benefit as well as that of their coworkers.

Related: For more people practices and insights, check out the latest survey write-up and archived summaries in the Open Communications area of the Research Studies section of our website.

10 Nontraditional Practices in Celebration of National Work and Family Month

Monday, September 26, 2011 by Mark Harbeke

October is National Work and Family MonthDid you know that National Work and Family Month, as designated by Congress, is fast approaching?  October has been that month since 2003 – more information on it and what it's about is available here.

As part of a blog fest around this month-long event, Winning Workplaces was pleased to be asked to contribute an article on staff engagement activities that businesses can use to help their people strike a better balance between work and home life to The Huffington PostHere's what I shared:

Since 2003, the nonprofit I work for, Winning Workplaces, has sponsored an award honoring small businesses whose innovative employee practices drive business growth.  (It used to be called Best Bosses, and now it's known as Top Small Company Workplaces.)

Every year that we have run this competition, we have seen a link between using practices designed to help employees balance their work and personal lives, and better bottom-line results.  For example, our latest award cycle earlier this year -- which generated close to 350 applications from across North America -- revealed that companies that use one or more flexible work arrangements had 25% lower average turnover in 2010 compared to those that don't use any, and their average employee tenure is 43% greater.

Many of the practices these progressive small firms employ have gotten more media attention in recent years -- things like flexible shift start and end times, getting time off for community service, job sharing, summer hours and, as WFC Resources' Susan Seitel recently addressed as part of National Work and Family Month, telework.

Just as noteworthy, perhaps, is the following list of less traditional flex work practices our award-based research uncovered this year.  Small business leaders, especially, can use this as a springboard to better balance keeping their workers happy, energized and most productive with managing costs.

1. Employees, at all levels, manage their own schedules and work hours to be most conducive to their personal lives, as long as these altered schedules do not impact their ability to deliver to clients or to support their coworkers.

2. With advance notice, all holidays are "floating," meaning that employees can shift or consolidate "traditional" days off such as Memorial Day or Labor Day.

Read the rest of our article here.

Related: Dig even deeper into the possibilities for your people practices – and the payoff of employee engagement – by reading these additional articles on The Huffington Post that also help elevate and celebrate National Work and Family Month:
If you're on Twitter, you can also follow all the insights and related events in October by searching the hash tag #NWFM.

Payoff of Employee Engagement More Visible Thanks to The Colbert Report

Monday, September 19, 2011 by Mark Harbeke

How did I miss this?  Last week the University of North Carolina Kenan-Flagler Business School blog linked to an interview of Zappos CEO Tony Hsieh that aired on The Colbert Report at the start of August.  I'm embedding the interview below, as it's short and worth a view:



(Click here if you can't see the video in your RSS feed)

As I'm sure many of our readers are aware, promoting the payoff of employee engagement, including progressive strategies designed to build a more productive workplace to drive better bottom line results, can be an uphill battle.  For all the emerging research which points to better engaged and satisfied employees as a means for long-term competitive advantage, there is a prevailing view, including what is still taught in many MBA programs, of "profits before people."

What I like most about this video is how Hsieh, in characteristic fashion, pivots from Stephen Colbert's questions about how the company "delivers Wow" and profits on the customer side, to what the company does as part of its internal people practices to make "Wow" possible.  This includes core values such as empowering employees at all levels to make key decisions, and even leveraging their expertise when it comes to whom to hire for best cultural fit.

The Colbert Report and its primetime lead-in, The Daily Show with Jon Stewart, nightly draw an average of between 600,000 and 1 million viewers.  And the video has been viewed more than 20,000 times on The Colbert Report's website.  So even though Hsieh got a big opportunity to talk to a lot of existing and potential customers, I think the big winner in this is staff engagement activities as a revenue generator.

Related Posts:

Winning Workplaces Provide Assistance After Hurricane Irene

Thursday, September 1, 2011 by Mark Harbeke

An employee of Mass.-based Woodmeister Master Builders (one of our Top Small Workplaces) posted this shot of a downed tree following Hurricane IreneA key building block of a Winning Workplace is people practices supporting a focus on Teamwork & Involvement (more about the other 5 building blocks we believe in, and have seen in practice among the great small firms we've studied and recognized, here).

This involves team building strategies, of course, but it also relates to the extent that an organization acts as a means to empower its employees to improve the communities in which they live, and supports them during crises.  Our recent Success Story on Van Meter Industrial, a 2010 winner of our Top Small Company Workplace award, addressed this in detail related to the historic flood that hit its headquarters city – Cedar Rapids, Iowa – in 2008.

We've just weathered an even larger-scale natural disaster – Hurricane Irene, which devastated many East Coast states this past weekend.  True to form, many of the small businesses we've honored with both of our awards are offering assistance to individuals and businesses that were affected by it.  Here's a snapshot of what they're doing:

1-800-GOT-JUNK? (2005 Best Boss - Brian Scudamore)
As their business is based on junk removal, they're doing what they do best and clearing out flooded basements and storm debris.  Their call center and website have been slammed, and their northeastern U.S. franchise partners tell them that their schedules are packed.  Luckily, they work directly with insurance companies, so it takes some stress out of the process of mopping up after such a destructive storm.

Bersin & Associates (2011 Top Small Company Workplace)
Since many of their employees work remotely from the East Coast – they're based in California – they've helped them out in several ways: 1. Paying for one employee's monthly rent increase while they move into a new neighborhood 2. IT staff is helping people get their computers back up and running 3. Offered to help each employee financially with power outage issues.

Dealer.com (2010 Top Small Company Workplace)
This Burlington, Vermont-based firm shared on their Facebook page (which as over 2,200 fans) that much of Southern and Central Vermont has been hit hard and is in desperate need of help.  They also shared a link to a blog that's been set up to help Vermonters assist their fellow citizens.

Dyn Inc. (2011 Top Small Company Workplace)
Tom Daly, President and CTO of this Infrastructure as a Service (IaaS) company, provided a checklist on their blog to help ensure that company data centers are prepared for major weather events.  They then shared this on their Facebook page, which has over 4,700 fans.

Firespring (2011 Top Small Company Workplace)
Following Hurricane Katrina in 2005, Firespring, a comprehensive marketing solutions provider, instituted a policy allowing any client to essentially "freeze" their account and suspend payments until they were able to get back to business as usual.  Yet, by their own admission, they failed to recognize that many clients were utilizing their online file transfer and job submission utilities that automatically purged old data.  Since many of their clients went without power for several months, they lost valuable data when Firespring's system did its job.  When Hurricane Irene hit last week, it affected hundreds of their clients.  For the past several days, they have been closely analyzing data to ensure that all of them are still able to access their files and are actively engaged using their other web tools.  They were prepared this time.  Their support staff is also reaching out to clients to see if there is anything else they can do to help them.

Northeast Delta Dental (2005 Best Boss - Tom Raffio)
This dental insurance provider has invited employees and their families without electricity to use their facilities, and they are prepared to initiate fundraisers through their Helping Hands program as they learn about employees whose homes were damaged.  They have also activated their ListServ capabilities for their board members, resulting in an exchange of offers to help one another within the tri-states, which has proven immeasurable for their colleagues in Vermont who experienced extremely high flood waters and washed out roadways eliminating access to even basic services.

One Call Now (2011 Top Small Company Workplace)
This Ohio-based enterprise, which delivers automated phone messages to improve communication between and among organizations, has emailed their customers in the states affected by the hurricane. They offered them free upgrades to their existing service, ranging from free texting for 30 days free weather alerts until November 1, when hurricane season is over.  In addition, organizations who coordinate relief for the affected areas can get free call credits added to their accounts to help with their work.

Seventh Generation (2006 Best Boss - Jeffrey Hollender)
The marketer of environmentally responsible household products is donating some of them to make 1200 green cleaning kits for hurricane victims.  They've partnered with the Vermont Foodbank to build and deliver the kits to communities most in need. And they shared news of this on their Facebook page, which has over 260,000 fans.

Next Step: Review the above examples – is there anything you can do or adapt from them to provide better value to your employees, customers, or local communities/states?  (Or get set to do for a future disaster affecting your area?)  And how can employee engagement be a catalyst, or improved, through these efforts?

3 Reasons to Ask Your Email List to Update Their Information Preferences

Friday, August 26, 2011 by Mark Harbeke

There are many benefits to asking your email subscribers to update their profile with youAs those of you who are already subscribers of Winning Workplaces' emails on activities for employee engagement and team building in the workplace may remember, our registration form asks you to list your company role – ranging from Owner/CEO/President to HR to Marketing/Sales.

One of the things I'm working on improving that relies on this data is sending emails with role-specific workplace practices – so that more of the output from our information clearinghouse is relevant to our subscribers' daily work.  I sent emails with customized content links this week to the roughly 25% of our subscribers who said they fall under one of six roles when they signed up with us.

Also this week, though, I took the opportunity to send a separate email to the roughly 75% of subscribers who didn't list a role (it's not a required field during registration) asking them to do so.  While I am still going through responses and updating our records based on them, I have a couple observations on why it's a good idea for businesses – especially small ones that typically are a bit closer to their customers and other contacts – to broadly follow the tactic I did in my second email campaign this week.  That is to say, asking some or all of your subscribers to update their information preferences.

Here are 3 reasons why you should do this, at least yearly and maybe even every 6 months:

  1. As I mentioned above, this will enable you to customize the information you send them, whether it be educational content as is our primary focus, product/service help or updates, community news, or something else.  Or, if you already do some customization (the technical term in marketing circles is segmentation), this tactic will allow you to do even more.  The overall goal is to use the data you gather to segment your emails to such a degree that your KPIs (typically view and click-through rates) perform better than past campaigns, and/or surpass those of your industry.
  2. If, as I did, you personalize your "ask" email with the name of your contact person – both in the email signature at the bottom and in the "From" line at the top – as opposed to just having it be addressed from your company, you increase the likelihood for it to be a tool for you to engage in a dialogue with those on your list with whom you may not have communicated in a while.  We originally set up our online registration form in fall 2005, and I had fun reconnecting with a few contacts who signed up with us at that early stage (online, that is – Winning Workplaces has been around since 2001).
  3. This practice is a nice complement to the process of routinely "scrubbing" your list, which can be done in one step in most bulk email programs.  In fact, both externally doing this through this practice, and internally via scrubbing, are not just nice to do, in terms of ensuring a qualified contact list – they are required under CAN-SPAM rules.  Small businesses, especially, should take care to check their compliance of these rules, since costs associated with noncompliance hit them disproportionately harder than their larger competitors.

If I had to list a fourth reason, it would probably be that leadership looking to do this, or to do it more systematically, can enjoy the built-in benefit of getting employees engaged from multiple areas – marketing, sales, IT, etc.

Related Post: Social Media May Be All the Rage, But Don't Neglect Email

Why the Protect IP Act Should Concern Small Business CEOs and CTOs

Friday, August 19, 2011 by Mark Harbeke

Image adapted from Demand ProgressRecently, by way of a left-leaning political campaign's online petition, I heard about the Protect IP Act.  The more I learn about this legislation in the U.S. Congress, however, it seems of concern to small business CEOs and CTOs regardless of their party affiliation or views of Washington.

This week CNET wrote a good summary of the original Senate draft of the legislation, and of substantial changes the House is looking to make to it before scheduling a vote on it (hearings on the act in the latter chamber are set to take place next month).  Basically, the act in both forms was drawn up to police and punish websites that have engaged in an increasing headache on the web: intellectual property infringement.  (Think illegal movie and music downloads.)

The problem is that, as the legislation is currently drafted, it could inadvertently result in the shutdown of a large swath of small business sites that are not actually engaging in IP infringement – without first giving them a means to challenge any such claims against them in court.  In fact, this happened to over 80,000 sites earlier this year.

Another potential problem if this act were to become law is the unfair burden that could be placed on small firms in terms of backing up online data, which could be a provision if companies are accused, vis-a-vis their Internet service providers (ISPs), of IP infringement.  In a column on this topic earlier this month, David Snead, an attorney who specializes in cases involving Internet infrastructure providers, says the 18 months of data protection and storage that's been suggested "would be particularly difficult for small businesses who don't have the resources to purchase additional servers and implement compliance programs necessary to protect this information."

Free speech and open Internet groups including Human Rights Watch and the Electronic Frontier Foundation have stated their opposition to the bill.  But so has American Express – no doubt because many of their small and midsize business customers' commerce could be affected if it passes.

Next Step: In addition to the links above, I recommend you visit, read, and share Wikipedia's summary of the bill with your CTO, if not your whole IT department or staff.  You could then kill two birds with one stone: educate your appropriate team members with an aim toward drafting a "disaster recovery" plan if it goes into effect (and if you think that could be detrimental to your business), while promoting workplace team building and employee engagement activity.

Is Your Sector Competitive When It Comes to Employee Engagement?

Thursday, July 28, 2011 by Mark Harbeke

GfK Custom Research North America finds that workers in construction are more highly engaged than those in educationBusiness owners attribute competitive advantage to their business model, value proposition, innovation, as well as the "smarts" I mentioned in this post on Patrick Lencioni's session (among others) at our conference last month with Inc. Magazine.  But as a new special report by Workforce Management makes clear, employee engagement is just as much a driver of competitiveness – and thus, revenue growth, market share, and other desired results.

One of my key takeaways from Garry Kranz's great report is the two graphs he shares on the most and least engaged workers by sector, as researched and reported last month by GfK Custom Research North America.  Sectors with the highest levels of engagement, based on GfK's survey of over 5,000 employees, include:

  • Construction
  • Professional/Business Services
  • Information Technology

And those with the lowest engagement (or, conversely, highest disengagement) include:

  • Retail
  • Real Estate
  • Education
  • Manufacturing

Is your sector among those above?  (If it is, hopefully it's in the high-engagement group.)

I was curious as to how the sector representation of the recent winners and finalists of Winning Workplaces' 2011 Top Small Company Workplaces award, and the remaining applicants – some 350 firms in total – compare to GfK's high/low engagement sector findings.  Comparing apples to apples (the same sectors in both surveys) here's what I found:

Companies in High- and Low-Engagement Sectors Among the 2011 TSCW Award Winners/Finalists and Other Applicants

Undoubtedly, part of what made this year's award winners and finalists competitive was that they came from more sectors with typically higher engagement, and fewer sectors with lower engagement, when compared to the remaining applicant pool.

Here's the really interesting thing, though: despite our company research sample's small size relative to many of their marketplace peers – firms eligible for our award have no more than 500 workers – and, therefore, their more limited budgets for employee development strategies, in many cases they are still outperforming their often larger competitors.  For some people practices insight into how they accomplish this, see what Kenexa Research Institute Exeucutive Director Jack Wiley says in the Workforce Management report:

[S]ome organizations say they have managed to sustain engagement levels during the prolonged recession.  Typically, those employers systematically gathered feedback from employees, analyzed responses and implemented changes as needed, Wiley says.  "They measure engagement with the same rigor they apply to customer service or financial data."

This tendency is definitely in effect among the small firms that rise to the top of our award evaluation process each year – not just based on their engagement activities, but on the bottom-line results they bring, including lower turnover and higher average employee tenures.

One more thing: As I discussed in this post based on new university research, spending to cultivate more highly engaged employees is not truly working for you unless it is used to build a career path for them, especially for your top performers.  You should check out this revealing, related research I came across today via WorldatWork.  They share Right Management's new survey finding that 75% of organizations lost high-performing employees they did not want to lose during the past year.

Pay special attention to the last paragraph of the WorldatWork write-up: a Right Management senior exec cited supports the case of providing a career path for top talent to avoid losing these critical assets (at this critical time!).

SJF Institute Promotes Link Between Workplace Engagement and Company Growth in Massive New Report

Monday, July 25, 2011 by Mark Harbeke

Click to read the Executive Summary of SJF's new reportAlthough we consider ourselves extremely vocal when it comes to promoting the link between staff engagement activities and long-term company growth, Winning Workplaces is by no means the only organization shouting this from the soapbox.  Just last week, SJF Institute (with whom we've previously collaborated to produce content to help you improve your people practices) released a massive, 155-page report exploring this link in stunning detail.

While this report, Employees Matter: Maximizing Company Value Through Workforce Engagement, would be noteworthy in any case, we appreciate that over a third of the 24 companies profiled are Winning Workplaces honorees.  They include:

Before delving into the full report, I recommend checking out page 3 of SJF's 4-page Executive Summary of the report.  There you'll find a breakdown of 10, Winning Workplaces-approved worker engagement strategies which fall under the areas of HR practices, culture formation, and broad-based involvement and ownership.

We congratulate SJF Institute for undertaking the research, writing, and production to make available this valuable report.

What are your takeaways from the report, or other thoughts on it?  Let us know in the comments.

Top Takeaways from Our 2011 Leadership Conference with Inc. Magazine

Wednesday, July 20, 2011 by Mark Harbeke

2011 Leadership ConferenceThis is a little late coming, but I wanted to supplement the takeaways I've shared on Twitter from our Leadership Conference last month with Inc. Magazine (see these five recent tweets) with a post here with even more on what I learned and got a refresher on when it comes to investing in your workplace for greater employee engagement, team building, and other profitable people practices.

I'm also happy to share some of the great photos Inc. took of the sessions.  My thanks to Rachel Kovar, Inc.'s Events & Conferences Manager, for supplying them.  Rachel and her team are busy getting ready for the 2011 Inc. 500/5000 in September.

Back to the June Leadership Conference...

June 16, 2011

The Five Dysfunctions of a Team

Patrick LencioniPatrick Lencioni of The Table Group gave a rousing review of the successful business practices he puts in a real-world context in his book of the same name.  He gave all attendees a copy of it – it's a great, short read, which I finished on my flight from Dallas back to Los Angeles.

His premise was that all the company smarts that CEOs care about and work to improve from day one – strategy, marketing, finance, technology – are only half the equation for successful firms.  The other half is creating a healthy workplace culture, with minimal politics and confusion, but high morale and, thus, productivity.  "Healthy is the multiplier of their smarts," Lencioni said.

A Top Workplace One Year Later: The New York Jets

Matt HigginsSome of what Matt Higgins, EVP for the Jets, shared in this session – which took place just over a year after the team was named one of our 2010 Top Small Company Workplaces – was reflected in the Success Story we wrote on the company last July.  This includes the inclusionary leadership of the owner and head coach and the pervasive focus on listening to lower-level employees.

What was new here, to my ears at least, was how the Jets are being productive in their version of a particularly "down" time – the NFL lockout.  Higgins said they've taken it as an opportunity to send some of their staff to shadow people in other professions, ranging from firefighters to politicians, to promote continued employee leadership development.

June 17, 2011

How to Get Ferocious Commitment from Your People

Stan SlapI hadn't previously been exposed to the speaker of this session, Stan Slap, author of Bury My Heart at Conference Room B: The Unbeatable Impact of Truly Committed Managers.  He spent a good deal of time explaining the differences between leaders and managers; while both work hard on consistency and passion, Slap said, what distinguishes managers from leaders is that the former can get away with faltering on these qualities, but the latter simply cannot afford to do so.

Also, based on what I've seen and written about in terms of the highly specialized, tight knit cultures of many of our award-winning small workplaces, I liked that he emphasized family as a core value that helps create more open, honest communication – which, of course, promotes better business results.

Creating a Culture of Customer Service

Christopher Zane (left)Since Winning Workplaces previously enlisted the expertise of one of our honorees, Headsets.com's Mike Faith (who moderated another session at this year's conference), to speak on this topic in one of our webinars a few years ago, I didn't think I would pick up many new tips.  Boy, was I mistaken.

Christopher Zane, founder and president of the wildly successful Zane's Cycles, said one of his main areas of focus is improving and leveraging relationships with his business customers in between sales by surveying them on potential new product features.  He also shared the story of how he fired one of his customers after the person unnecessarily berated one of his employees.  This made clear his belief in the long-term good of working with quality folks in all parts of their product lifecycle – not just employees.

Related: This conference was the culmination of our 2011 Top Small Company Workplaces award process.  We're gearing up now to launch our 2012 competition.  Click here for the latest news on it.

Where is Your Organization on the Competing Values Framework?

Tuesday, July 5, 2011 by Mark Harbeke

How do your people see your firm on the Competing Values Framework?I love LinkedIn.  I've blogged before about its value, especially considering it's free except for your time (though there are fees if you want to post jobs there).  In the past I've used the business-themed social networking site to gather opinions on Zappos' "leaving bonus," and I referenced its Group feature as a lead-driving tool.

One of the best ways to use LinkedIn is to ask and answer questions.  I particularly enjoy going to the Small Business and Organizational Development sections and seeing what company leaders, managers, and other employees are talking about – and occasionally offering my opinion.  I did so last month in response to organizational culture consultant and speaker Marcella Bremer's question asking why building a productive workplace culture is often not on the agenda of CEOs, company board members, and other top executives.

My response sparked an email conversation in which Marcella and I compared notes on our respective firms devoted to leveraging employee engagement and team building strategies to improve companies' bottom-line results.  The enterprise she co-owns, OCAI online, is based in the Netherlands (people practices advancement is truly a small world!).

When I went to her site I learned what OCAI stand for: Organizational Culture Assessment Instrument.  Developed by Kim Cameron and Robert Quinn, the OCAI operates based on what's known as the Competing Values Framework.  Here's what this looks like:

The Competing Values Framework

As you can see, as you go up on this graph you transition from core values supporting stability and control (some would say, command and control) to flexibility and discretion.  From left to right, the focus changes from internal and integration to external and differentiation.  Where a company lands on this graph determines its balance among four Organizational Culture Types: clan, adhocracy, hierarchy, and market.

What I find amazing is that when I go to OCAI's page explaining these culture types in greater detail, I find that, generally speaking, Winning Workplaces' Top Small Company Workplace award honorees fall within the area of the graph I highlighted below:

Competing Values Framework - Top Small Company Workplaces

That is, they have:

  • workforces who say they feel like a family;
  • leaders who see themselves, and are seen by their people, as mentors;
  • strong emphasis on teamwork, participation, and consensus; and
  • employees who take risks, within a culture that promotes individual initiative and freedom.

However, I think our honorees are also a hybrid – they might have cultures which generally fall within the area of the graph I indicated, but when you read their applications for our award, they have succeeded in using staff engagement activities representative of a clan or an adhocracy to propel their business squarely in the market sector of the graph.  This is another way of saying, they don't just treat their people well because it's the right thing to do – they integrate these practices into the "vaue drivers" OCAI talks about of increasing market share, goal achievement, and profitability.  I discussed this a bit more in posts in January and June.

So...where does your company's culture fall on OCAI's graph?  I think leaders would find it an insightful and useful exercise to survey their management teams and other employees on what they think, and see how it compares to their own assessment.

How to Maximize Your Employee Training Dollars

Tuesday, June 28, 2011 by Mark Harbeke

Learn how to make your dollars spent on employee training strongerAs Newswise reported two weeks ago, a University of Iowa study found that a good portion of the $134 billion that businesses spend annually on employee development strategies "could be wasted if companies don't assure their employees that they have a promising career with the company."

That's a huge chunk of change – savings that struggling small businesses, especially, would love to see back on their balance sheets.  To it in perspective, Standard & Poor's said Sunday that the U.S. bond market could lose roughly that amount if our economy loses its triple A rating as a result of the debt ceiling not being raised by the Treasury's August 2 deadline.

According to the study's authors at the UI Tippie College of Business, spending on professional development is most effective when it's tied to career advancement opportunities.  In fact, they argue, when it's not, turnover actually increases.

They also say that in addition to employee engagement activities like career counseling, "programs like mentoring and job rotations as well as good relationships with their immediate boss can create the feeling that career opportunities are available."

In fact, tying professional development dollars to career counseling is a practice the small firms that applied for Winning Workplaces' 2011 Top Small Company Workplaces award earlier this year have used to great effect.  And by "great effect," I mean keeping their workers longer, so they end up spending far less recruiting and training new hires to replace those who've left for jobs where they see more long-term career potential.  This, in turn, helps maintain the knowledge base and facilitate the kinds of quality customer and client relationships which generate businesses' favorite revenue, repeat business and referrals.

Check out the charts below.  Among our sample of nearly 350 firms applying for our workplace award this year, those providing career counseling experienced better employee tenure on average than their peers with no professional development approaches.

Average employee tenure

Avg 2010 revenue

Share profitable in 2010

We also saw that companies providing mentoring programs and/or job rotation – which the study authors also pointed to for the most "lean" spending on employee training – in addition to career counseling earned more average revenue in 2010 vs. who don't fund professional development practices.  And firms providing mentoring and job rotation, but not career counseling, were more likely to be profitable than those who don't fund professional development.

Related: For more workforce effectiveness tactics that are low-cost but high-impact, read this article on our website.

Jon Huntsman Promoted Winning Workplace Practice in Utah

Friday, June 24, 2011 by Mark Harbeke

2012 GOP presidential candidate and former Utah Governor Jon HuntsmanIn Winning Workplaces' experience – when consulting with small businesses and when evaluating them as part of our annual Top Small Company Workplaces competition – when companies "share the pain" with their employees to help weather hard times, often a prime employee engagement activity is switching from a traditional five-day work week to four days, and increasing the work day from eight to 10 hours.

The company whose legacy of the profound payoff of employee engagement led to the inception of Winning Workplaces – Fel-Pro in Chicago, IL – turned to this practice at one point in their 80-year history when they faced the prospect of laying off a portion of one of their units.  This "share the pain" tactic and desired result (not losing employees for when conditions inevitably improved) has played out in small firms we've honored for their innovative and productive workplace cultures including:

I was reminded of the benefits of this practice (not just for employers but for employees as well in terms of saving money on gas for commutes and being able to run more errands and thus experience less stress in their personal lives) when I read this Huffington Post article a few weeks ago.  It shares that, while the state of Utah recently switched its public employees back to a typical, five-day work schedule, when they worked four-day weeks three years ago when 2012 Republican presidental hopeful Jon Huntsman was still governor,

When it came to employee morale, Huntsman's "four-tens," as the shortened workweeks were known, ended up being more loved than loathed.

The article notes that after the kinks were worked out from this huge schedule change, the practice had an 85% approval rating.  Why?  Well, in addition the work/life benefits I mentioned above, Utah employees wound up doing more community service.  In fact, a key output of winning workplaces is that through people practices which support greater trust, respect, and fairness of the workforce, employees are more inspired and engaged, and – as our chairman Ken Lehman explains in this video on our website – they leave the office with more energy to be better neighbors and citizens (not to mention, parents and spouses).

I think it's also worth noting that while the practice was curtailed in part because Utahns were not able to get needed state services on Fridays, the state did save some money as a result: around $1 million (Huntsman's administration had projected it would save about three times that).

What are your thoughts or experience with implementing four-day work weeks in your organization?  Please let me know in the comments.

Top Small Workplaces 2011 vs. 2010 - Employee Tenure, Turnover, Turnover Costs, and Retirement Plans/Revenue

Friday, June 3, 2011 by Mark Harbeke

2011 TSCW vs. 2010A year ago, after Winning Workplaces and Inc. Magazine announced the winners of our 2010 Top Small Company Workplaces award, I began a series of posts sharing data on how the winners, finalists, and other applicants performed on some key business metrics:

Now that both organizations have announced the winners and finalists of our 2011 award, I think it's time to give you some updated stats.  As you'll see, they continue to support our thesis – and those of many of the other firms out there that study employee engagement and team building within productive workplace cultures – that investing in your workforce pays being dividends over the long term.  That includes an increased ability to anticipate and weather tough economies like the current one.

Employee Tenure and Turnover

table 1

As you can see, part of what distinguished the 2011 winners from the finalists was higher average employee tenure and lower turnover.  But to me the real story is how much improvement in these metrics the winners had over the finalists, vs. last year's winners compared to the finalists.  This is represented in the chart below:

chart 1

While one might argue that the continuing down economy, and particularly the stagnant job market, is keeping people from leaving who otherwise might jump ship – increasing average tenure while keeping voluntary turnover low as a share of total turnover – our data seem to indicate that something else is going on.  Otherwise the winners' improvement over the finalists from 2010 to 2011 would be more gradual and not so steep.  I suspect that more leaders of small firms are having frank, "We're all in it together" conversations with their workers, and at the same time are doing a better job of linking individual to company performance and providing attractive incentives to encourage more top-level work and innovation.

Turnover Costs - Winners and Finalists vs. Other Applicants

table 2

Most definitely there is a mixed-results story going on here.  On the one hand, while among our 2010 pool the winners and finalists had about half the turnover of other applicants, in 2011 the winner and finalist turnover was two-thirds the level of other applicants.  That was the driving factor behind the average, annual turnover cost of winners and finalists representing 89% of the cost of other applicants (in 2010, winners and finalists experienced only 40% of the cost of other applicants).  Still...

chart 2

...as this chart shows, you can also look at it as a testament to the current winners and finalists that they were able to keep turnover at essentially the same low level (considering the variance in industry, geography, marketplaces, et al) as 2010, which allowed them to still have lower turnover costs than other applicants.  This is particularly noteworthy since the 2011 winners and finalists represent a greater share of the total applicant pool (24%) than they did in 2010 (8%).

The Link Between Retirement Plans and Revenue

table 3

While there are obviously many, many other factors involved, it's hard to ignore the business metrics that tend to increase – among all our award applicants, not just winners and finalists – when companies show their long-term commitment to their workforces by investing in their retirement, as I discussed last October.  As the table above shows with the 2011 applicant data added, we continue to see a link between funding these plans and the tendency toward greater revenue and increased likelihood of being profitable.  However...

chart 3

...take a look at the difference in revenue for companies who funded 401K, 403B, IRAs, or other plans in 2011 vs. those who do not, compared with the same groups in 2010.  (Also note that the ratio of those who fund these plans vs. those who don't stayed essentially the same both years, 9 to 1.)

Is the difference a fluke?  Or do you think there's something going on related to benefits and incentives within a framework of progressive staff engagement activities?  I'd love to read your thoughts – on this trend and anything else I've shared above – in the comments.

Five Ways HR is More Than Just 'Office Equipment With Legs'

Friday, April 22, 2011 by Mark Harbeke

CNN contributor Max BarryLast week I was combing CNN.com on my lunch break.  When I first came across author Max Barry's article "Why I fled the office cubicle," I thought it was going to just be about how this 20th century feature of workplace culture and design can hinder employee engagement and ideation from the bottom up.

It is about that, but Barry also takes aim (I think unnecessarily) at human resources professionals:

The difference between people and human resources is that people have brains.  ...  Human resources are basically office equipment with legs.  They're talking furniture.  In fact, they're worse than furniture, because at least furniture stays where you put it.

Ouch.

In stark contrast to how Barry sees HR, here's how I painted this critical business function in the context of our Winning Workplaces in 2009:

For the most part, among the small firms we've honored for their outstanding employee engagement that improves productivity and the bottom line, HR leaders morph from paper pushers to planners and implementation specialists, along with the CEO, of team building activities that fit and reinforce the work culture.

Below are five specific examples of this, among the small firms we've honored and profiled over the years:

1. Leadership Advisor and Key Decision Maker

Ginger Bay Salon & Spa, Kirkwood, MO
HR Representative: Sasha McGuire

"I'm part of the leadership team here, and we meet weekly to collaborate," McGuire says. "My boss, the owner, is very open to my feedback.  For example, I make the decisions around staffing, and she trusts me and consults with me.  I make the recruiting schedule, and make selections.  The owner is involved, but trusts me to do my work well."

2. Self-Directed Workforce Director

New Belgium Brewing Company, Fort Collins, CO
HR Representative: Jenny Briggs

Philosophically, NBB's intention is to develop a workforce that, at all levels, is self directed, makes reasoned decisions and is inspired to pursue their passions at work.  The company provides a menu of opportunities for all staff including: a process for employees to establish their own work objectives, on-site internal training, tuition for external education, a job shadowing program, and participation on one of NBB's committees.  Many of these activities are directed by Briggs and her 10-person staff in Human Resources.

3. Productivity Enhancer

High Performance Technologies, Inc. (HPTi), Reston, VA
HR Representative: Eleni Antoniou

The firm's staff benefit from peer learning through Learning Cafe presentations that are given every two to three weeks. Occurring over the lunch hour in a format akin to brown bags, staff members have the chance to receive in-depth training on a particular computer program or even learn a skill not tied to the workplace.  Antoniou, director of HR, has presented several topics, including goal setting and getting the most out of performance reviews.

4. Relationship Builder

Optimax Systems, Inc., Ontario, NY
HR Representative: Alejandro Mendoza

Mendoza's duties include helping to administer Optimax's successful mentoring program, which is core to the company's developmental process and helps maintain its unique workplace culture.  All new employees are assigned a mentor for a minimum of 90 days and there is a structured timeline of events that are expected to take place during this time period, including: much one-on-one time, monthly lunches, introductions to all staff, orientation to computer systems, understanding the bonus program, etc.  "Instead of a boring HR orientation, this mentoring relationship helps new employees understand our environment and what is expected in a far more effective manner," says Mendoza.

5. Emergency Responder (Culture Maintainer)

Ipswitch, Inc., Lexington, MA
HR Representative: Betty Lang-Holmes

Lang-Holmes had been on the job for one week when tragedy struck her software company, Ipswitch, Inc.  An employee's well known significant other passed away unexpectedly.  As vice president of human resources, she acted quickly.  "We invited a licensed counselor from our EAP to host bereavement seminars the very next day," she says.  "Now, there's no stigma attached to getting help when people need it."  In fact, at only $65 per employee, Ipswitch's EAP investment, and oversight by HR, amounts to just pennies compared to the costs of losing a valued associate.

Related: Our Leadership Conference with Inc. starting June 15 is a fantastic opportunity to learn about cutting-edge employee practices for greater team camaraderie and company productivity – the kinds of practices you can leverage your HR staff to implement, increasing your ROI from them!  Hurry – the $300 early bird disount is only available until May 6.

Energized Employment: Why Working Out Could Be Your Work Catalyst

Wednesday, February 9, 2011 by Mark Harbeke

employee workoutThe following is a guest post by Pam Greene.  Pam's journey to health and fitness started when a friend suffered through some health challenges.  Realizing this was a wake up call to focus on her own health, she started learning about fitness, nutrition, and healthy weight loss.  Pam now works for Beachbody, which provides home fitness programs and workout DVDs including the well known P90X exercise program.  Pam is passionate about sharing tips to help others eat better and exercise for improved health.

Over the years, I've always been a tough one for my work managers to figure out.  On one hand, I'm aggressive when it comes to my lunch break – all of my lunch break.  None of this fifteen minute Cup o'Noodles at the desk business for me.  I take my hour, head to the gym, and workout. In the rare event this can't happen, then I'm out the door at 5 pm.  I've got to get that circuit training in before going home to feed the troops.

This insistence on personal time can be a little troubling for employers used to the typical, 21st century, 24/7 work commitment.  But despite the way my coworkers slurp down microwaved sodium bowls as they file reports and regardless of how they continually pull all-nighters, I'm consistently more productive than they are – because I exercise.

I'm not basing this on my own intuition.  Study after study has piled in backing me up.  For example, according to joint study from the University of Illinois at Urbana-Champaign and Vrije Universiteit in Amsterdam, regular exercise caused cognitive improvements in subjects ranging from 15 to 71.  Another study published in the journal Brain and Cognition showed that after a 30 minute bike ride, subjects were able to complete cognitive tests faster.  In other words, I might work a few less hours a week, but I get more done in that time because I 'm more focused.

But that added brain function also comes from the fact that I feel well-rested.  In a 2006 meta-study out of the University of Georgia, researchers reviewed 70 exercise and fatigue studies and discovered that, 90% of the time, sedentary people showed improvement with fatigue issues and increased energy when they worked out regularly.  Of course, while working out plays a big role in this, I should point out that I'm also fairly strict about getting my 7-8 hours of sleep every night.

Also, I'm generally in a better mood, which means I spend less time bellyaching around the water cooler or going after the fax machine with a baseball bat.  The reason for this is, according to a study presented at the American College of Sports Medicine annual meeting, just twenty minutes of exercise improved the moods of the participants between the ages of 18 and 25.  This mood-boost lasted 12 hours, probably due to the release of endorphins, happiness-inducing chemicals in your brain.

Another thing that exercise releases in the brain is a fancy thing called brain-derived
neurotrophic factor (BDNF), a vital key to keeping your memory sharp.  According to research out of the University of Illinois at Urbana-Champaign, just 30 minutes of cardio, three days a week, is enough to boost BDNF.  This means my memory is great.

So, overall, these factors mean that I'm more productive.  And I'm not alone.  A study in the International Journal of Workplace Health Management shows that exercise increases workplace productivity by 23%.  In case you're interested, most of the participants did aerobic workouts.

Of course, now that I work at a fitness company, the paradigm has shifted a little.  The in-house gym is often packed at lunch.  I've even hammered through particularly challenging Pilates sessions with my boss jamming right next to me.  Because of that, productivity is stellar around here.  After years of being the odd woman out, it looks like I've finally found the right office in which to hang my sweatband.

Related: To learn more about implementing health- and wellness-themed benefits that serve the dual purpose of creating activities for employee engagement and team building, and also boosting your bottom line, read this post.

Facebook's More Flexible Content Sharing Aids Your Business Branding

Wednesday, February 2, 2011 by Mark Harbeke

Better control your company's message on Facebook with the help of these page link-sharing tipsIf your business has a Facebook page, and/or other social media outposts, you might have noticed that when you go to share your content in those places (or that of partners, customers, competitors, etc.), the text that appears below the article headline/link is fixed.  This text is usually the first sentence or two of the article.

But what if you want to emphasize a certain point or quote from what you're sharing?  What if you want to paraphrase something said and personalize it to you or your company?

At least on Facebook, you're in luck.  The site recently and quietly changed it's link-sharing capability so that you can modify the main message area – the space below the link title.  You can change this text from what it is by default to whatever you want.

Let me show you how this works:

step 1

Make sure you're on your Wall tab.  Then click Link.

step 2

Copy and paste your link in the space provided.  After a second while Facebook processes the entry, you will see the link title, address, and a portion of the copy in it.  As you can see from my screen capture, when the mouse floats over this copy it changes to yellow to show it's editable.  Just click and start typing to make it say whatever you want.

The applications of this on your branding are many:

  • If your senior leadership have complementary activities that serve to build the brand, call attention to them.  (Corporate social responsibility initiatives come to mind.)
  • Engage in virtual team building by promoting employee successes.  (This is an emerging tactic among employee retention tips.)
  • Highlight key customer online reviews or other mentions.
  • Promote beneficial vendor or partner relationship deliverables or key victories.
  • Take the bold move of linking to your competitors and showing how you're the better choice.

Related:

  1. If you're not our fan yet on Facebook, go here and click "Like."  We share a combination of our latest news and original employee engagement research, plus relevant content from our workplace award media partner, Inc. Magazine, among other sources.
  2. The link-sharing example I used in my screen capture above is one of two articles I wrote exclusively for Inc.  Go here to read both of them.  We hope to add more to our roster there soon.

Even More Lucrative Case for Progressive Workplaces With Active Company Founders

Tuesday, February 1, 2011 by Mark Harbeke

If your founder is active, reassess the involvement of him or her with your staff. It could make a big impact on your bottom line!Last March I shared a trend Winning Workplaces noticed when we reviewed a question we asked of our 2009 and 2010 Top Small Company Workplaces award applicants: Is the company founder still active?  In both years we found that small businesses with active founders had noticeably higher 3-year revenue growth than those whose founders were not active.

With our 2011 application cycle having recently wrapped up, I updated last year's table with this year's growth percentages for each group:

Multi-year revenue growth of 2009-11 TSCW award applicants by founder status

The trend continues...but that's not all.  As the chart below shows, the growth disparity between companies with active founders and those without them is widening.  While the gap from our 2009 to 2010 award applicants grew 33%, it nearly doubled from 2010 to 2011:

Growth disparity of 2009-11 TSCW award applicants - founder active vs. not active

Not that you have to have an active founder to attain strong growth and profitability.  Still, if your founder is actively involved in your business, our data show that you may have a great opportunity to make better use of this person in terms of aligning employees and people practices with your mission and marketplace impact.

Related: Our website has lots of case studies on how small-company founders have used a variety of innovative staff engagement activities to take their organizations to the next level.  Check them out.

Finelite's 4 Employee Engagement Keys to Impactful Benefits

Monday, January 10, 2011 by Mark Harbeke

Click for more info on FineliteHow do you ensure that your benefits are really resonating for your workforce, so they're incentivized to continue to deliver excellent service?  As Finelite – a 2010 finalist for Winning Workplaces' Top Small Company Workplaces award – shared in their application, 4 employee engagement-driven keys work for them:

  1. Experiment
  2. Listen to results
  3. Make continuous improvements
  4. Avoid becoming rigid

As we noted in our award profile on Finelite, during the current downturn the 20-year-old, California-based firm avoided layoffs while generating record shareholder dividends – and still were able to pay employee bonuses near target levels.  Their answer to our application question asking for info on benefits not asked as part of our checklist of common package offerings sheds light on how the keys mentioned above played out in helping them achieve these outcomes:

Finelite strives to find ways to address the high cost of living in the San Francisco Bay Area and the congestion on our roadways.  When gas prices skyrocketed in 2008, our hourly workers voted to change to a 4-day, 10-hour-a-day work plan.  Half of our hourly employees worked Monday to Thursday, while the other half worked Tuesday to Friday.  The goal was to reduce commute time and fuel costs, while limiting daycare needs to four days a week.  In practice, the challenges surrounding daycare and adjusting schedules within families were greater than anticipated.  Hourly workers also indicated that they missed the benefits of working as one team instead of two.  As a result, in November 2009, our hourly employees voted to return to a 5-day, 8-hour-a-day workweek.  Here is the bottom line: Experiment. Listen to results. Make continuous improvements. Avoid becoming rigid.

One more thing: In this case I mention these 4 keys as pertaining to benefits-oriented people practices, but you'll find them helpful in general when it comes to making your staff engagement activities more successful for your workers and for your organization.

Do you have uncommon or original homegrown benefits that have helped keep your business humming during the downturn?  Tell us about it, and enter for your chance to be featured in Inc. Magazine this June!

8 Takeaways About Our Workplace Award Application from HR Types

Thursday, January 6, 2011 by Mark Harbeke

organizational developmentOrganizational development factors strongly in the content on staff engagement activities and other people practices that Winning Workplaces has published – just check out this page of search results on our website.

As our mission is to help small and midsized businesses create better work environments, it likewise also looms large in our biggest annual project, our Top Small Company Workplaces award with Inc. Magazine.  In fact, in our retooled-for-2011 application for the award, Learning and Development has its own section.  You can see the questions we ask in this section by clicking here and then clicking the 2011 application preview link in the 3rd bullet in the lefthand column.

If you're an HR type, you may be wondering what your peers think of our award in terms of the value they've gotten from applying, as a means to improve their firms' workplace culture.  Below is feedback that 8 such applicants shared from our 2010 application cycle:

  1. "The application does a good job of breaking down the key attributes and facets of our firm (i.e. culture/people development, etc.). It allowed us to look critically at each area and determine what we are excelling at and what could use development." (Manager of talent acquisition, 10-year-old consulting firm with 50 employees)
  2. "Excellent exercise in articulating our workplace culture." (VP of HR, 7-year-old retail electricity provider with 103 employees)
  3. "This process was very rewarding as it brought together several departments and helped each of us to not only look back on past accomplishments but also to look ahead to where we are going." (Organizational development specialist, 8-year-old government contract support provider with 160 employees)
  4. "We have documentation of our practices that we plan to share with board and staff at upcoming meetings.  We have also recommitted to the HR goals set for this coming year." (Development director, 9-year-old social services firm with 33 employees)
  5. "What this did do for me was open my eyes to all our company does even in these tough economic times, and I have started using this in my recruiting process." (Recruiting manager, 11-year-old financial services firm with 62 employees)
  6. "We're taking next steps to more consistently track HR metrics such as turnover, hires, percent minorities, etc." (Employee experience manager, 18-year-old information design consulancy with 30 employees)
  7. "Our next steps will be to document our ethical practices so that everyone knows that we are an ethical company." (Director of HR and finance, 11-year-old software installation provider with 27 employees)
  8. "Formalizing discussions about a 401k match, in addition to considering flexible work arrangements were definitely our take-aways from the process." (Director of HR, 19-year-old financial services firm with 294 employees)

If you are in HR in your organization and would like to gain a better workplace perspective, click here to see if your company qualifies for our 2011 Top Small Company Workplaces award – and a shot at being featured in Inc. Magazine in June.