The latest research has found Great Workplaces based on positive people practices create a buffer against economic storms. According to research just released by GreatPlaceJobs, the leading job search platform and networking community helping job seekers connect with positions in award-winning organizations, has quantitatively linked Great Workplaces as business powerhouses even during an economic crisis. The GreatPlaceJobs Great Workplace Employment Study shows it makes prudent financial sense for leaders to adopt, model and promote positive people practices in their company.
Our good friend and business affiliate, Asher Adelman, president of GreatPlaceJobs, recently released nationwide the findings of their groundbreaking research. “The study shows that top-ranked Great Workplace employers are much more recession-proof than the average company, having conducted layoffs at a rate of less than half that of companies in general,” said Adelman, founder of the leading job search platform and networking community for Great Workplaces. Adelman also stated, “The last thing a job seeker wants is to be hired by a company that ends up having to lay off workers a few months later.”
According to the GreatPlaceJobs press release, companies that have been recognized as great workplaces conducted far fewer layoffs than a general sample of companies. Only 35% of excellent employers conducted layoffs in 2008, as opposed to a shocking rate of 73% of regular companies. In addition, the revenue growth rate at great workplace companies in Q3 2008 was 27.4% higher than their competitors, and the average stock price of the excellent employers was close to 10% higher at the end of 2008 (compared to the beginning of 2008) than that of their competitors.
SUMMARY OF FINDINGS
- Layoffs: Fortune’s 100 Biggest Companies had more than double the number of layoffs vs. the Fortune 100 Best Companies to Work For in America.
- Bankruptcies: Nine bankruptcies or bailouts in the 100 Biggest; none in the 100 Best Companies.
- Revenue growth: Less than 3% at the 100 Biggest Companies; Almost 30% at the 100 Best Companies.
- Share Prices: While both groups’ share prices dropped in 2008, the drop was nearly 10% more in the 100 Biggest.
If you are interested in more information, here is the link to the press release.
What are your thoughts about this latest research?