The 2023 ANBLE Best Workplaces will hire talent from any industry.

The 2023 ANBLE Best Workplaces will hire talent from any industry.

The Power of a People-First Culture: Why Great Workplaces Outperform

Low unemployment rates and a resilient job market have put the spotlight on company culture. According to research conducted by Great Place To Work®, employers who prioritize their people stand a better chance of retaining top talent. The study, which analyzed over 1.3 million employees for the 2023 ANBLE Best Workplaces by industry lists, revealed that companies that prioritize their people outperform across all culture and business metrics, regardless of the industry.

One industry that has struggled to fill vacancies since the pandemic is retail. However, the ANBLE Best Workplaces in Retail not only reported a dramatically better workplace experience than their industry peers (52% better), but they also outperformed a typical U.S. employer by 35%. This outperformance included highly competitive industries like professional services and technology, where the Best Workplaces in Retail surpassed their counterparts by 25% and 27%, respectively.

But retail is not the only industry where a people-first culture thrives. In fact, all the 2023 ANBLE Best Workplaces by industry outrank the employee experience of typical workplaces. So, instead of asking which industry to switch to, Michael C. Bush, CEO of Great Place To Work, suggests asking, “Who’s the best company to work for?”

The benefits of a people-first culture are evident in several key areas, including employee retention (88%), referrals (91%), discretionary effort (90%), and agility (87%)—all of which were nearly double that of typical workplaces. “This is what happens when you take care of your people,” explains Bush. Leaders who prioritize their employees can expect increased productivity, performance, innovation, and agility. To attract and retain the best talent, making the workplace an enjoyable place to be is crucial.

To determine the 2023 industry lists, Great Place To Work analyzed data from employees in various sectors, such as manufacturing and production, aging services, health care, consulting and professional services, financial services and insurance, advertising and marketing, retail, real estate, construction, biopharma, and technology.

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In today’s lean economy, strong cultures that value and recognize all employees play a critical role in enhancing productivity and agility. When employees can rely on their colleagues to cooperate, they are more likely to go above and beyond and adapt to change. According to the research, nearly 90% of employees at the Best Workplaces by industry feel they have cooperative colleagues compared to only 63% at typical workplaces. This cooperative environment results in employees being 587% more likely to believe their coworkers give extra effort and 57% more likely to say people adapt to change.

What Sets the Best Workplaces Apart

According to a Great Place To Work market study of over 4,400 U.S. employees, an average of 37% more employees at the Best Workplaces consider their workplace great compared to their peers at typical workplaces. Creating a great workplace requires building a foundation of trust based on credibility, respect, and fairness. It’s not about offering extravagant perks and shiny objects. The study identified three key differences in company culture between winning and average workplaces across all industries:

1. Fair Profit Sharing

An astonishing 108% more employees at the Best Workplaces report receiving a fair share of profits compared to typical workplaces. For example, Nugget Market, ranked No. 14 among large retail companies, has taken steps to ensure fair compensation. Initiatives like making the “thank you” bonus pay permanent, conducting a wage review ahead of schedule to address rapid inflation, adding an additional $1 per hour to wages, and doubling the associate discount to 20% for all employees demonstrate their commitment to fair profit sharing.

2. Equality in Management

Less than half (45%) of employees at average workplaces feel that management treats all employees equally. However, this number almost doubles at the Best Workplaces (88%) due to programs that help managers avoid bias in their daily interactions. For instance, CarMax, ranked No. 5 among large retail companies, has implemented the Associate Care and Connection initiative. This program connects managers with employees, fostering supportive and trusting relationships through one-on-ones, huddles, quarterly communications meetings, and roundtables.

3. Sense of Purpose

Research shows that purpose-driven cultures consistently outperform others across industries. Employees who feel that their work is more than “just a job” are more likely to stay with the company. In retail, a sense of purpose increases retention by 76% and leads to a 35% increase in discretionary effort. By creating a strong sense of purpose, Best Workplaces cultivate an environment where employees look forward to coming to work. Compared to typical workplaces, where only half of employees have this level of anticipation, nearly 9 out of 10 employees at Best Workplaces experience a 76% increase in enthusiasm.

Building a great culture requires intention and effort, irrespective of the industry or company size. As the current job market becomes increasingly competitive, prioritizing the well-being and satisfaction of employees is essential for all organizations. By nurturing a people-first culture, businesses can not only attract top talent but also increase productivity and adaptability, ushering in a more prosperous future for both employees and employers.

Roula Amire is the content director at Great Place To Work®.