New 2017 Grades!

The phrase good employer evokes images of generous, nice companies.  While such attributes are part of the equation, being a good employer is more complex – and more difficult to achieve.  There are many moving parts, tradeoffs, and judgments that companies must make with regard to their employees.

There are three main elements to being a good employer:

  • A value-creating organization committed to its employees, through active management of the organization’s leadership, work, and learning environments
  • Creating business intelligence for being a worthy employer; this makes it possible for a company to masterfully manage the tension between employees as costs and employees as assets
  • Providing an inspiring purpose with compelling answers to the questions “Whom is the company designed to benefit?” and “What is the company trying to achieve?”

Why would a company seek to be a good employer?  This is basic to being a good company for at least three reasons:

  • Employees are fundamental stakeholders in a company and deserve to be treated and managed well
  • Over the long run, it’s hard for companies to deliver great value to their customers if their employees are surly, disenfranchised, and/or in short supply
  • If companies mistreat or mismanage their workers and fail their customers, the company’s capacity to deliver value to its investors and other stakeholders will suffer correspondingly

On our Good Company Index, we use two sources of information to rate companies as good employers: