By Rebecca Macfie
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Friday 1st February 2002 |
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Eli Lilly marketing associate Roger Beeden will begin studying towards a two-year graduate diploma in human resources management this year. Nothing remarkable in that - except that his employer is paying his study fees of $6000-$7000. The company is keen to back employees who want to broaden their horizons and skills, and investment in education fits neatly with the company's core values of people, integrity and excellence.
When Trish Harsnappe, an accounts clerk at Express Data, was hospitalised with a minor heart attack, her superiors were at her bedside in a flash, telling her not to worry about her job and to focus on getting better. When she returned to work after three or four weeks, her colleagues watched her like a hawk and saw to it that she had all her follow-up medical checks. "They were thinking about me and my illness as much as I was."
At Microsoft New Zealand, technical marketing group manager Terry Allen manages about 13 people. It's a big, challenging job, but once a week without fail he switches off his mobile and takes his young son swimming. "It's a no-go zone, and people understand that." He, in turn, tells his staff if they need to take two or three hours off to watch their children in a school production or on the sports field, they can.
And what do the employers get in return for all this corporate compassion and largesse? Well, according to human resources consultancy John Robertson & Associates, which crunched the numbers for the Unlimited "Best places to work" survey, they get loyalty, commitment and pride in the company, and a willingness to seek solutions not problems, to be creative and innovative, to work hard. There's no doubt about it, John Robertson says, being a good employer is simply good business.
"Creating a good work climate makes sense from every dimension," says Microsoft New Zealand managing director Geoff Lawrie. "If you have satisfied staff, they are more productive and happier to work across teams. If you have a positive work environment, you produce better results and that in turn attracts better staff to the company."
WEL Networks chief executive Mike Underhill reckons employers are waking up to the logic of getting the best from employees by treating them well. "It wasn't so long ago that you were judged by how many people you made redundant this week. Things have swung away from that." But while the old "sackings will continue until morale improves" school of management appears to be on the way out, redundancies and restructurings are still part of the corporate life cycle. The important thing is how the process of change is managed and how people are treated.
Take Toyota New Zealand. In the last five years it's closed its Thames and Christchurch assembly plants and gone from a workforce of over 1000 to under 200, yet the message from staff is that it's still a great company to work for. "We've been able to go through all that without creating bitterness because we've done it ethically and we've looked after people," says managing director Bob Field. Staff were kept informed, the company spent 12 months helping workers in the plants to retrain, it advertised nationally to help place them in new jobs, and it set up a job centre in Thames for those who still didn't have work when the plant shut down.
While there's no blueprint for being a great employer, some strong themes come through in discussions with executives and staff of the top scoring companies in the 2001 Unlimited "Best places to work" survey. Top employers have clear corporate values and vision that give their staff focus; they allow staff to make decisions; they invest in training; they make work fun; they're generous with praise and recognition; they genuinely care about their staff; they walk the talk.
Often it's an assortment of factors that combine to make a happy workplace. Judyanne Lemmens scanned the job market carefully before deciding to join BT Funds Management as a business risk manager. She was swayed by the fact she can fit her work schedule around the needs of her two young children. She likes the weekly yoga classes for staff, the morning fruit bowl, the open-plan environment and the free flow of information that ensures everyone in the company is kept in the picture.
So, what are the things that make an organisation a great place to work, and what are the key differences between the top-ranking companies and the bottom? Judging by the results from the top 21 companies (there are 21 companies because two companies rank 20th equal), the things that matter most to employees relate not so much to individual job satisfaction, but to their perceptions of the organisation. People like the feeling their company is successful, they want to believe in its objectives and to be proud to be part of it. People also like to have good colleagues who they have confidence in, they like to feel respected and they like a bit of latitude to do their job well. As the table on page 40 shows, the top 20 outclass the bottom 20 by wide margins in these areas.
Analysis of the entire database of 6927 respondents gives insight into the issues that employees are less satisfied with. On two statements - "People get promoted on merit in this organisation" and "The pay and benefits I receive are fair for the work I do" - employees tended not to give their organisation the thumbs up. Other low-scoring questions related to opportunities for advancement, communication between management and staff, inter-team relationships, management responses to employee ideas, recognition, feedback and performance assessment.
Survey designer John Robertson believes one of the defining features of a great workplace is the strong sense of alignment to a unifying corporate vision.
"What you tend to find in the successful organisations is the leader working hard to define and articulate the vision. They are also very visible - it's very easy for a chief executive to become totally office-bound, but the chief executives of organisations with high staff morale tend to be the ones that make a point of being visible, of meeting and communicating with staff. There's a respect for their staff and almost a humility about them. Strategic human resources is about capturing the hearts and minds of your people so that you create an environment where people can achieve great things. People are not stupid. They are not easily fooled by superficial displays of management concern. What people look to are actions."
"We treat this as if it was our own business," says team member Carl Hamilton.
"It's individual responsibility in a team environment. It's total ownership of the job," offers Stuart Duncan.
They are converts to the Westco Lagan philosophy of self-managing teams, open communication of all company information and helping staff to reach their potential. Hamilton admits he had his doubts when directors Dean Sweetman and Grant Carruthers began introducing the new approach following their management buyout of Westco eight years ago and merger with Lagan Lumber 18 months later. Mutterings of "big girls' blouses" and "I'm outta here" were heard in the ranks. Early team meetings were uncomfortable affairs where blokes would shuffle their feet awkwardly and say as little as possible.
How things have changed. There's an easy banter among members of the Chipmunks as they share their thoughts on workplace empowerment, the joys of being multiskilled and the challenges of finding ways to work smarter and more profitably in difficult commercial circumstances.
And difficult they are. Two years ago, Westco Lagan was looking forward to an eight-year rimu supply contract with Timberlands West Coast. But the Labour-Alliance coalition ripped that secure future from under the company's feet when it cancelled the West Coast Forest Accord and canned Timberlands' sustainable native logging plans. To survive, Westco Lagan has had to switch to pine, establish new log supplies, find new markets, develop new processes and reduce staffing from a peak of 135 to 92 by April 2002.
All that uncertainty, yet the workforce still rates it as a top place to work.
Indeed, Carl Hamilton reckons if it weren't for the philosophy introduced by those "big girls' blouses" eight years ago, the company wouldn't have survived the upheaval. "We just wouldn't have had the skill within the teams, but the directors told us the situation and we've tightened up our costings and fine-tuned our processes."
Carruthers describes the company's employees as "undiscovered treasures ... many of them have probably been casualties of the education system but the things they are capable of doing is brilliant."
Take Stuart Duncan for example. With no formal training, he took it upon himself to develop a computer program to automatically record tallies (the number of bits of wood put through the saws), replacing a tedious manual system. The program is now an integral part of the team's operation. In addition, the team wrote its own process manual, and several members have stepped up to leadership roles across the whole site. Hamilton is health and safety coordinator, Duncan is in charge of quality, Ken Uprichard calibrates all machines, Darryl Lineham is training coordinator.
Carruthers reckons tapping into the collective talents of your staff makes solid commercial sense: "In this business, one tree is pretty much the same as the next; everyone has the same sort of capital equipment, there isn't much that's incredibly new that gives you a sustainable advantage. The only potential advantage you have is your people, and what you can get out of harnessing the collective talent in your workforce."
Process worker Andrew Ball is a union delegate at the company's Palmerston North site. Press him for a complaint about his employer and all he can manage is a tongue-in-cheek accusation that it only supplies chocolate biccies two or three times a week. Seriously, though, Ball says when it comes to the issues that really count for workers, New Zealand Pharmaceuticals is doing things right: it still pays penal rates and overtime, and it takes its health and safety obligations extremely seriously.
Staff are paid a petrol allowance to get to work, in recognition of the fact the plant is 10km out of the city. As well as receiving a formal induction, every new staff member has a meeting with Garland in his office, who explains the company philosophy and its health and safety approach, and reinforces that they are free to ask anyone anything if they are unsure.
The company's main activity is the extraction of animal bile for export to pharmaceutical manufacturers. Garland says it's a niche business in which the company's industrial customers need to be confident of quality and supply. Having a stable, knowledgeable workforce is an essential part of the business.
The company has implemented a raft of measures to win staff loyalty, particularly since 1998 when management purchased it from former owners ICI NZ. All staff were encouraged to take a shareholding at the time of the management buyout and around 40 of the 70 employees took up the option. Staff are kept in the picture as to company performance and there's a staff profit share scheme.
On top of all this, the company is funding a personal growth programme aimed at helping staff set goals and achieve them. The motivation for providing the programme, says Garland, is the same as the motivation for subsidising medical insurance. "If staff look after their health, they will be better in their own lives and they will be better in the business. If people feel better about the way they manage their lives they will be more creative and more productive in the way they contribute at work. We want people to see their lives as integrated. We want them to have purpose in the whole of their lives and see work as an interesting part of it."
Programmer Bevin Souster has worked for the Wellington software development company for a year. He says the place is friendly and buzzing with energy, there's good communication, it has the latest technology and everyone is encouraged to work to their potential. The company's quality assurance man Zabe Orchard likes the organisation's flat structure and openness, and the easy availability of management. "I would feel totally confident in asking anything or making any suggestion, and I would say most other people feel the same ... I'm totally happy here."
Every Friday, the staff gather for drinks and an update on company performance, and to dole out awards to those who've made the biggest contribution and the biggest blunder during the week. Once a year, the entire staff and their families are taken away for a weekend for a company "conference", which includes a dinner and award ceremony celebrating staff success.
No one - not even the managing director - has an office. Stewart says the open-plan environment helps promote free communication and it makes sense for a workforce that needs to team up for specific projects.
Staff have a say in who gets hired by the company. "If anyone says they don't think the person is going to fit in or they don't like them, then they don't get hired. If I think someone is good and the others don't like them and I hire that person, then I'm usually wrong."
Realising swift action was called for, Xtra management set about transforming its workplace culture, starting with a set of philosophical building blocks tied together by a unifying vision. "The culture we try to engender is creative, professional, flexible, trusting, innovative, funky and energetic. Wrapped around that is a vision to evolve the internet to enrich the lives of all New Zealanders every day," says general manager Rod Snodgrass.
As part of the rebuilding process, all staff were brought into a bonus scheme linked to individual and company performance. Recruitment was done via a 360-degree process of interviews with bosses, subordinates and peers. A FIFO (fit in or f-off) policy was incorporated, aimed at "externally promoting" those that didn't fit the emergent culture and who took up a disproportionate amount of management time. Monthly meetings with staff were introduced, where company performance is openly discussed.
The fourth floor of the company's downtown Auckland headquarters was gutted to create a playroom with pool tables, ping-pong tables, PlayStations, beanbags and a very big fridge. Every Friday night there are drinks on level four, and every third week there's a theme party. Staff successes are celebrated, and there's an Xtra Wall of Fame for those who have made a major contribution to the company. There's spontaneous recognition for those who go above and beyond the call of duty: Staff who recently worked 40 days straight were told to treat themselves and send the bill to the company.
For sales manager Phil Unsworth, it all adds up to an environment where he has the freedom to get on and do the best he can. "You go to work to pay the bills, but the thing that keeps me coming back here every day is the fact that I absolutely love my job ... the environment allows me to succeed and I get huge recognition for that."
Results from each organisation were analysed and a performance index was calculated as a weighted average score across all survey categories. From those scores, John Robertson & Associates drew up a short-list of the 30 highest scoring organisations and interviewed their chief executives for further insights. Additional information on response rate, staff turnover and training spend was also gathered.
A summary of all this information was then presented in blind format to a panel comprising representatives from John Robertson & Associates, Unlimited and Haines, which decided on the top 20.
| Top 20 | 89.33% |
| Lowest 20 | 68.13% |
| Difference | 21.20% |
I believe in what this organisation is trying to accomplish
| Top 20 | 88.22% |
| Lowest 20 | 75.46% |
| Difference | 12.76% |
I am proud to work for this organisation
| Top 20 | 87.55% |
| Lowest 20 | 69.48% |
| Difference | 18.07% |
Overall, this organisation is a great place to work
| Top 20 | 84.93% |
| Lowest 20 | 63.09% |
| Difference | 21.84% |
Overall, I enjoy working with my colleagues in this organisation
| Top 20 | 84.83% |
| Lowest 20 | 76.39% |
| Difference | 8.44% |
Overall, I feel a sense of commitment to this organisation
| Top 20 | 83.88% |
| Lowest 20 | 66.59% |
| Difference | 17.29% |
The person I report to treats people with respect
| Top 20 | 83.27% |
| Lowest 20 | 71.22% |
| Difference | 12.05% |
I have confidence in the ability of the people in my team
| Top 20 | 82.69% |
| Lowest 20 | 74.98% |
| Difference | 7.71% |
I am clear about the roles and responsibilities of my job
| Top 20 | 82.61% |
| Lowest 20 | 74.79% |
| Difference | 7.82% |
I have the freedom and flexibility I need to do my job effectively
| Top 20 | 82.43% |
| Lowest 20 | 70.16% |
| Difference | 12.27% |
The 10 weakest points
| People get promoted on merit in this organisation | 55.87% |
| The pay and benefits I receive are fair for the work I do | 59.17% |
| There are opportunities for advancement for me in this organisation | 60.60% |
| Communication between management and staff is open and honest | 60.92% |
| Different teams within the organisation work well together | 61.41% |
| Management encourages and acts on suggestions from employees | 62.42% |
| I get recognition when I do a good job | 63.19% |
| The feedback and coaching I get helps me to do a better job | 65.13% |
| I feel informed about this organisation and its activities | 65.27% |
| My performance is fairly assessed | 65.80% |
1 BT Funds Management 84.7%/50
86%/20%/2.5%/Not provided
Yoga lessons in the boardroom, health seminars every six weeks, lunchtime lectures on social and political issues and a daily fruit bowl help keep staff at this funds management firm happy. Chief executive Craig Stobo shares the same open-plan office as his staff. There's also a generous bonus scheme.
2=Microsoft 84.4%/109
53%/8%/Not provided/Not provided
Rigorous corporate planning, individual goal-setting and honest performance appraisal are essential elements in the Microsoft culture. Having set clear goals, staff are then free to get on and achieve them. Every year the staff are taken away for team building and a detailed briefing from management on company goals.
2=Holmes Consulting Group 84.4%/84
93%/9%/5% of net profit/$8.2m
This engineering consultancy gives its staff stacks of responsibility and then backs them to the hilt. Young engineers get to run entire projects, whereas in most consultancies they would be merely drip-fed chunks of the job. Sounds scary, but staff are encouraged to seek the advice of experienced colleagues whenever they need it.
4 Express Data 83.8%/42
93%/30%/3.5%/$62m
The core philosophy of this technology distribution company is that customers, vendors and staff be treated equally. The corporate structure is flat, communication is open and staff are encouraged to run their part of the business as if it were their own, says country manager Ian Jansen.
5 Eli Lilly and Company 83.7%/34
88%/3%/10 days per year, minimum/Not provided
This pharmaceutical company is big on training and education. Sales and marketing people get 10 days' training a year from the company. There's also strong support in the form of time off and fee subsidies for staff who want to acquire further qualifications. Chief executive Michael Harrington says out of 31 people in the sales, marketing and medical reguatory divisions, 20% are studying for an MBA.
6 Intergen 83.6%/37
90%/3%/2.5%/$4m
Open-plan offices, open communication and the opportunity to do challenging work on the latest gear are among the reasons for staff loyalty at this software company. There's also lots of recognition for staff achievements and plenty of socialising, with Friday drinks and a weekend away for staff and families every year.
7 GlaxoSmithKline 82.3%/135
90%/7%/7.8%/$100m
Remove the shackles and let people make the decisions that affect them, says managing director Peter Schweikert. Other important elements of this pharmaceutical company's HR management are an in-house training facility with four full-time trainers, and a revamped bonus system that rewards staff on individual and company performance.
8 WEL Networks 80.8%/67
51%/15%/5%/$62m
This electricity distribution company provides an industrial chaplaincy service, holds staff briefings after every board meeting and has weekly team meetings. And every morning managing director Mike Underhill walks round the office talking to people - ingenious!
9 AMI Insurance 79.6%/585
46%/13.6%/5%/$179m
Chief executive John Balmforth says the company regards its staff as customers, and customers are at the core of its business strategy. The company offers lots of training, including a five-day personal growth programme called "Investing in excellence".
10 McDonald's 79.5%/104
55%/7.3%/9.5%/Over $100m
Managing director Alan Dunn says the fast food giant isn't shy about sending a staff member and spouse off to Queenstown for a spot of R&R in recognition of effort beyond the call of duty, or where the individual has experienced personal difficulties. Staff are given the flexibility to get on with the job, are paid in the upper quartile for the industry, and youth workers are paid adult rates.
11 Xtra 78.8%/166
85%/25%/$3000 per person/$80m
A clear vision, free flow of information, highly visible management and lots of flexibility about how staff do their jobs are all part of the Xtra secret. Portal group executive producer Carolyn McKenzie says she values being given a say, being kept informed and the great people she works with.
12 Sytec Resources 78.4%/75
56%/10%/5%/Not provided
Managing director Grant Smith says this technology consultancy business works in an unforgiving industry, so strong quality control and "aggressive" internal challenge are an essential part of the organisation's culture. The company recruits top staff and gives them challenging work. Performance is rewarded with generous bonuses and there's a staff share scheme.
13 Lion Breweries 76.4%/565
57%/11.4%/3%-5%/$350m
Clearly articulated company values, bonuses linked to company results, staff share allocations and paid parental leave are among Lion's HR initiatives. Staff are encouraged not to be afraid to make mistakes, and they get "360-degree" feedback from those above, below and beside them. Oh, and there's also a monthly beer allowance.
14 New Zealand Pharmaceuticals 76.2%/70
69%/10%/5%/$30m
The average length of service in this manufacturer of pharmaceutical raw materials is nine years - and the biggest cause of staff turnover is maternity leave. Everyone's on a first-name basis, there's a staff profit-share scheme, a major commitment to health and safety and staff personal development, and unlimited sick leave.
15 Waikato District Council 75.8%/180
40%/19%/2.6%/$37m
Chief executive Warwick Bennett puts on a breakfast briefing a couple of times a year, and occasionally takes a group of 15 or so out of the office for an informal consultation session to hear their frustrations and ideas. Staff also get to draft up their own personnel policies.
16 United Airlines 75.4%/115
67%/3.5%/Not provided/Not provided
Staff are told that when dealing with customers, they are empowered to do whatever is needed to put things right. Every two years the company runs a "climate" survey of its employees worldwide. Management is then held accountable for addressing problems.
17 Environment Waikato 74.9%/220
70%/11.8%/4%/$45m
With ratepayers and political masters to please and often contentious public issues to deal with, local government can be a frustrating industry to work in. Chief executive Barry Harris says his staff are encouraged to understand the constraints, to work constructively in teams, to take risks and to exercise their own judgement.
18 Compaq Computers 74.8%/375
30%/13.9%/5%/$300m
Chief executive Russell Hewitt says staff are empowered to find solutions for problems that come across their desks. Whinging isn't allowed: "If you see something that's not as good as it could be, bring your idea to the table, or just do it."
19 Toyota 73.4%/106
79%/10%/2%/Over $500m
Staff meetings are held every month to outline progress and hand out bouquets. Managing director Bob Field says it's important for everyone to know what's happening across the organisation, so that the workplace is interesting and staff can see how they are contributing. Everything at Toyota is underpinned by Field's home-grown Theory C, a core philosophy covering everything from consensus to common sense.
20=Westco Lagan 73%/115
79%/11%/4%/$20m-$25m
"We tell everyone everything all the time," says Dean Sweetman, director of this Hokitika-based sawmilling company. By keeping people informed, training them (80% of the staff are enrolled in some form of training) and developing a regime of self-managing teams, Westco Lagan has maintained staff commitment through rugged times.
20=Designer Technology/Marshal Software 73%/52
79%/12.5%/$4000 per person/$8m
Comfortable offices with pool and ping-pong tables, takeways and drinks for staff and families once a month, an annual Labour weekend tripaway for staff and families (at a cost of $15,000-$18,000) and an annual weekend staff team-building trip are among the array of human resources practices designed to make work fun at this software company.
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