Is there a correlation between workers feeling well treated by their employers and the bottom line?
The evidence says, “Yes!”
Take for example, Market Basket, a 71 store food market chain based in New England. In June of 2014, the Board of Directors of Market Basket decided to dismiss company President Arthur T Demoulas, affectionately called ATD by employees and customers alike. They gave control of Market Basket to ATD’s cousin, Arthur S. Demoulas, saying that they wanted more of the profits to be given to shareholders rather than employees. Shoppers boycotted the store in sympathy of the employees, to the point where the company was losing money to the tune of an estimated one million dollars per day.
Fortune Magazine has been tracking the best 100 best companies to work for in America for over 15 years and their data shows that stocks in these companies have out-performed the S&P 500 by nearly six percent. Please take a look at the 2014 list here:
http://archive.fortune.com/magazines/fortune/best-companies These companies can proudly confirm that they have well treated workers who contribute positively to the bottom line.
Robert Levering of the Great Place To Work Institute says, “The relationship of trust that creates a certain kind of culture… a family type of environment or team like environment.”
If you think that Fortune’s list is for just smaller companies, think again. Whole Foods Market, based in Austin TX, employs 85,000 people in 390 stores across the United States. At number 44 on the 2014 list, Whole Foods Market is one of only 13 companies who have made the list every year since Fortune Magazine started it in 1998. “To be a team member means that you are a member of the team, and that’s real at Whole Foods; it’s part of our culture.” states John Mackie, co-founder of Whole Foods Market.
A recent Gallup study revealed that only three out of ten employees are engaged – committed to or enthusiastic about their work. Gallup also estimates that actively disengaged employees cost businesses up to $550 billion per year in lost productivity.
Robert Pasin, CWO (Chief Wagon Officer) of Radio Flyer,and grandson of the founder says, “The most important way to have people engaged in their jobs is to make sure you’ve done a good job in hiring people in the first place.” Radio Flyer is # 13 on Fortune’s best small companies to work for with just 64 employees, or “flyers.” Radio Flyer has fun and games at work, but the point of the fun and games is to make sure the fun and games do not get in the way of the business of fun and games. Their ‘Little Red Rule’ states, “Every time we touch people’s lives they will feel great about Radio Flyer.”
While those of generations past may think this is all a bunch of malarkey – or some mumbo jumbo management BS – hold on. Radio Flyer has grown three-fold as a company in the last ten years. Robert Levering goes on to say that these are real companies with real people with real results in a way that succeeds and other companies should take note.
To close the loop on Market Basket; while Arthur T. Demoulas was dismissed in June of 2014 by the Board of Directors, just before Labor Day 2014, An agreement was reached whereby Arthur T. would buy out his cousin and Market Basket reopened for business – with celebrations by employees and customers alike.
For more information on this incredible story, visit the website set up by those in support of Arthur T. Demoulas at http://WeAreMarketBasket.com
Companies on Fortune’s list have lower employee turnover, provide greater employee development and training opportunities, and have significantly higher employee engagement. So, what is your company doing to help engage employees, build trust, and become among the top places to work?