Best Companies to Work For

One of the few things I look forward to in January is Fortune magazine’s list of the “100 Best Companies to Work For.” As someone who teaches human resource management, I’m always relieved to see that Catbert is not the role model for all human resource managers. This year’s winner is Google, Inc. The work environment at Google is becoming legendary as the source of creativity and productivity that has propelled Google to its current market value of nearly $150 billion.

The perks of being a Googler are beyond amazing. Need to see a doctor or dentist? They’re available onsite along with the carwash, gyms, free laundry machines, and masseur. Hungry? Breakfast, lunch, and dinner are available in eleven cafeterias. But it will be tough to find a bacon cheeseburger at Google. You’re more likely to find shrimp scampi, steak Milanese, or fresh sushi. Did I mention that all of the food is free?

It’s tempting to think that Google makes these perks available because they have nearly $4 billion in cash sitting around. Founders Larry Page and Sergey Brin, however, will argue that the work environment is the reason they’ve been able to accumulate this stash. Google and other companies on Fortune’s list support the idea that an employee-friendly work environment is a sound investment. So how can expenses like blackened sea bass and ping pong tables produce a positive return-on-investment?

One advantage of such a culture is the recruitment value. Google received over 1,000,000 applications last year for less than 3,000 openings. With more than 300 applicants for each opening, Google can choose talented trustworthy employees. Google then sets them free to use their brains and do their jobs with little interference. In fact, Google expects engineers to spend 20% of their time on projects of their own interest.

Another common element among the companies on Fortune’s list is that they all try to make it as easy as possible for employees to be productive and successful. The carwash, food, and easily-accessible childcare relieve employees of daily burdens that distract employees from their work. Eighty-two of the companies on this year’s list allow employees the flexibility of working from home at least 20% of the time.

A final common element among the Best Companies is that they share the fruit with the farmers. Thousands of Googlers are millionaires because the company rewards employees with stock options. The employees who make the company valuable are able to share in the bounty.

Is this type of culture possible only in internet companies? The best thing about Fortune’s list is the diversity of industries represented. Number 3 on this year’s list (and former Number 1) is Wegmans Food Markets, a supermarket chain concentrated in Pennsylvania and New York. QuikTrip (the convenience store chain) is Number 20 this year. All full-time QuikTrip employees are eligible for monthly bonuses based on store profitability and customer-service ratings. South Carolina-based Milliken provides an excellent example of a textile manufacturer determined to stay in the United States. They’re cutting costs by investing in training that will make employees more productive and competitive with international labor.

The Best Companies to Work For have discovered an amazing principle. Employees will do unto the company as the company does unto them.