Study uncovers secret of world’s most admired companies
Engaging with employees strengthens loyalty and improves performance
After the thirteenth version of the famous list of the most admired companies in the world, published annually by Fortune magazine and the Hay Group, was released, data from a parallel study conducted by Hay Group was also revealed, according to which in these successful companies strategies to strengthen the commitment of employees achieve greater loyalty to the organization and that the results and performance are much better. By Catalina Franco R.
Every year the business world receives the news of the new results of the list of the most admired companies on the planet according to the ranking made by Fortune magazine and the consulting firm Hay Group. As is well known, this year the first places went to Apple, Google, Berkshire Hathaway, Johnson Johnson and Amazon.com. But, what many wonder is how these companies manage to occupy such important places in the minds and hearts of people, and if they have something in common that is key to their success in terms of arousing so much admiration for them around the planet.
Hay Group conducted a parallel and complementary study analyzing the employee engagement strategies and practices of the organizations on the list and found that the top-ranked companies had generated greater employee loyalty over the past two years and reported a greater decline in employee frustrations with working conditions that did not contribute to their success.
The study concluded that in the companies on the list of the most admired companies on the planet, employee engagement has led to greater loyalty to the organization and better business performance.
Committing to employee engagementIncreasingnumbers from different studies serve as a basis for understanding the importance of strengthening strategies to achieve greater employee engagement with the company and thus have a positive impact on various aspects of the organization and the business in general.
According to Mel Stark, vice president of Hay Group’s Reward Practice, “The world’s most admired companies have been particularly good at focusing on long-term strategies, demonstrating a low tolerance for executives who compromise long-term goals for short-term gains. Equally important, these companies communicate their objectives to all employees, connecting each employee’s goals and objectives to the overall business strategy, and, as a result, were able to emerge from the crisis with loyal and motivated workers.”
Hay Group’s research uncovered interesting and revealing data on employee engagement practices in the world’s most admired companies:
– 90% of study participants from the companies on the list identify their company as very effective or effective in fostering high levels of employee engagement, compared to only 71% of their peers.
– Ninety-four percent of them believe that employee engagement efforts reduce employee turnover and 85% believe they reduce employee performance problems, compared to only 67% and 72%, respectively, at other peer companies.
– Only 19% of the companies on the list experienced compensation freezes at a higher level over the past two years, compared to 36% at other companies; and only 10% of the former experienced layoffs at a higher level in this period, while the figure was 58% for their peers.
And in business performance…
But implementing practices aimed at strengthening employee engagement not only makes employees more loyal to the organization, but also directly influences business performance and consumer relations.
For example, 97% of the companies on the list believe that employee engagement has created a competitive advantage in the marketplace, while for their peers the figure is only 82%. Likewise, 71% of the top companies believe that their companies have been successful in connecting employee engagement with customer satisfaction, in contrast to only 58% of their peers.
Mark Royal, a consultant with Hay Group’s Insight Practice, says, “Employee engagement is increasingly recognized as a major driver of business performance, revealing important information about the health and future prospects of an organization.
Once again, the conclusions seem obvious that human beings work better when they feel good, when they perform their jobs under fair and motivating conditions, leading to better results and building strong companies that are loved by both their employees and society.
