Working on the Human Touch: 100 Best Workplaces in Europe 2014

Transcription

1 Working on the Human Touch: 100 Best Workplaces in Europe 2014

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3 3 Working on the Human Touch Great Place to Work releases its 12th Annual 100 Best Workplaces in Europe List; Microsoft, Davidson Consulting and Cygni take top honours Most European nations have seen their best workplaces increase employee trust levels over the past 5 years. Best workplaces increasingly put employees at the heart of their businesses. 100 Best Workplaces in Europe 2014

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5 5 Table of contents 06 Executive Summary 08 About Great Place to Work 10 Background and Regional Findings 18 Country-by-Country Trust Findings 36 Fast Facts about the Best 100 Workplaces in Europe The 100 Best Workplaces in Europe 2014 list 52 Profiles of the Three Top Companies 58 Special Awards and Winner Profiles 62 Methodology 100 Best Workplaces in Europe 2014

6 6 Executive Summary The best workplaces in Europe are getting better, and they are paying more attention to the needs and wishes of individual employees. That s the good news as Great Place to Work releases its 12th annual list of Europe s Best Workplaces. Microsoft is the best multinational workplace in Europe; Davidson Consulting (a technology advisory firm in France) earns the highest marks among large organisations in Europe, and Swedish technology services company Cygni ranks as the top small and medium-size company. All of the 100 organisations who have made the 2014 European Best Workplaces list have plenty to be proud of. But so does Europe as a whole. We conducted a five-year analysis of the best workplaces in European countries with a focus on levels of employee trust. Trust is the foundation of a great workplace and a key ingredient in employee engagement and business success. The results of the study show that most countries saw a gain in trust levels in their best workplaces, and several countries experienced significant improvement. No country witnessed a drop in trust levels in their best workplaces. In addition to the country-by-country analysis of best workplaces, we examined how trust levels have changed over time at the 100 Best Workplaces in Europe. That study of our regional list winners drew similar conclusions. Over the past 12 years, the 100 Best Workplaces in Europe have been scoring higher and

7 7 higher on Great Place to Work trust assessments. There are caveats to this sunny news for employees and employers. Our findings reflect the level of employee pride, camaraderie and trust at the very best workplaces in Europe, organisations that have earned places on national Best Workplaces lists as well as the regional Best Workplaces list. Still, the gain in trust at the best workplaces is a sign that the movement among business leaders and rank-and-file employees to build better workplaces is gaining momentum across Europe. That momentum has much to do with the ever-clearer connection between trust, engagement and business success. Employee trust in their leaders is a precondition to employee engagement, and engagement has proven to be critical to business performance. In the United Kingdom, for example, the top 25 percent most engaged workplaces enjoy double the annual profit compared with the lowest 25 percent. What s more, as economic growth has picked up in recent years in Europe and the labour market has tightened, companies are realising they must foster a culture that attracts, retains and inspires people. This is true in Denmark and throughout the region, says Ditte Vigsø, Managing Director of Great Place to Work in Denmark. Many Danish and European companies have realised that a positive working environment and high levels of trust, pride and camaraderie are the precondition for executing their strategy, Vigsø says. Employees are no longer considered to be the most important resource, but to be the very DNA of the company. Another key finding is that companies are treating employees more as individuals. In keeping with the personalization trend seen in other spheres of life, European workplaces are moving away from viewing employees as cogs in the machine and tailoring the work experience to each staff member. At Cygni, for example, employees are asked about what technologies they want to work on, what industry they want to focus on and where they want to work. They also can select their work hours and individual benefit options. That customised approach to work, in addition to frequent social outings and an annual company ski trip, is designed to provide employees with the human touch, says Cygni CEO Jon Persson. Nobody wants to be just a number in a budget or a spreadsheet, he says. Everybody wants to be seen and be appreciated. 100 Best Workplaces in Europe 2014

8 8 About Great Place to Work European offices: Great Place to Work has conducted pioneering research on the characteristics of great workplaces for over 25 years. We believe all companies can become great workplaces, and our mission is to help them succeed. Our Great Place to Work model is recognised as the standard for assessing great workplaces. Athens Amsterdam Cologne Copenhagen Dublin Helsinki Istanbul Leuven Lisbon London Luxembourg Oslo Madrid Milan Paris Stockholm Vienna Warsaw Zurich

9 9 In nearly 50 countries around the world, we are proud to: Recognise Best Workplaces for their achievements through our international and national Best Workplaces lists. In Europe we publish 19 national lists and worldwide we publish lists in almost 50 countries. Help companies create and sustain great workplace cultures through our advisory services. Our data collection tools (e.g. the Trust Index employee survey, focus groups, 360-degree professional development tool); educational workshops and training programs; action planning system; and strategic advisory services, support the transformation process within any organization. Great Place to Work s unique access to best workplace data allows us to offer unparalleled benchmarking opportunities, best practice information, and transformation insight for our consulting clients. Share resources, best practices, and research through our events and education services. These include peer networking groups, workshops, conferences, and publications, which enable organisational leaders to learn directly from each other, as well as benefit from our wealth of knowledge and lessons learned from best workplaces and our clients. 100 Best Workplaces in Europe 2014

10 10 Background and Regional Findings As we prepared our 12th annual list of the Best Workplaces in Europe, we decided to examine trust trends in individual countries and in the region as a whole. The country-by-country analysis meant reviewing best workplaces in each of our affiliates which represent 19 individual countries. In particular, we studied the Trust Index scores of all the national Best Workplaces lists during the past five years. The Trust Index is Great Place to Work s 58-statement employee survey that measures trust, pride and camaraderie in organisations. Each year in the study spans two calendar years. This is because Best Workplace lists in different countries are published at different times of the year, and we wanted to use the most recent data. The Trust Index benchmark scores showed that countries in the region remained relatively stable or recorded gains in terms of the trust levels of their best workplaces between 2009/10 and 2013/14 (See Figure 1). In addition to this analysis of each country s best workplaces, we studied the companies on our annual regional list of the Best Workplaces in Europe. For this research, we again examined Trust Index scores. Overall trust levels at the regional best workplaces have risen some years and fallen others during the period (See Figure 2).

11 11 Figure 1. Percentage Change in Trust Index Scores 2009/ / % 18% 18 15% 12% 9% 6% 3% 0% Denmark Switzerland The Netherlands Portugal Ireland Germany Austria 3 Belgium France Greece Italy 6 6 UK Finland Norway Spain Sweden Poland 10 Figure Best Workplaces in Europe TI Score Linear (TI Score) 100 Best Workplaces in Europe 2014

12 12 The sharp dip witnessed in trust levels in 2011 most likely reflects difficult economic times. Europe s largest GDP decrease took place in 2009, and likely led companies to take actions in 2010 such as layoffs and pay cuts that increased job insecurity and lowered Trust Index scores. Much of the Trust Index score data that makes up the 100 Best Workplaces in Europe list for a particular year comes from the previous year. So lower-trust environments in 2010 would reveal themselves in our 2011 figure. Despite that decline in trust and other dips during the period, the long-term trend is clear: there is rising trust at Europe s Best Workplaces. In other words, the best are getting better. We also see greater respect for employees as individuals at Europe s Best Workplaces. Our Trust Index data provides evidence of this shift. Consider the change in the response of employees at Europe s top 100 workplaces to this statement on the Trust Index survey: Management shows a sincere interest in me as a person, not just an employee. The percentage of employees at the best European companies who said such personal attention happens often or almost always was 82 in The score dipped to 78 percent in 2011, but climbed to 84 percent in 2012 and 2013, and rose to 85 percent this year (See Figure 3). It s a similar story with two other Trust Index statements related to treating employees as whole human beings, as people with lives outside of work and identities beyond wage earners. With respect to the statement, People are encouraged to balance their work life and their personal life, the percentage of European best workplace employees who gave a positive answer has zigzagged over the past five years but nonetheless risen from 81 in 2010 to 83 in 2014 (See Figure 4). And the European 100 Best Workplaces benchmark for the statement I can be myself around here has climbed from 89 percent in 2010 to 91 percent the past two years (See Figure 5). Examples from European Best Workplaces flesh out the figures showing greater trust and a more personal touch. For instance, eight years ago Davidson Consulting began with a plan to make employees comfortable and members of a family of sorts. We wanted to make it the company like a home, says Edouard Mandelkern, president of Davidson Consulting. If anything, that commitment to a familial spirit has increased over time. In recent years, the company noticed that younger employees struggled to find housing in Paris high-cost property market. So currently they are building a nineapartment home just outside of Paris for Davidson Consulting employees, who will have their own living quarters but share a kitchen and common areas. Mandelkern believes it is the first employee residence of its kind in France. In effect, Davidson is making the company-as-home metaphor a reality, thereby showing

13 13 Figure 3. Management shows a sincere interest in me as a person, not just an employee Figure 4. People are encouraged to balance their work life and their personal life Figure 5. I can be myself around here Best Workplaces in Europe 2014

14 14 its care for the human needs of its employees. Or consider Cygni s many efforts to connect with its employees. Besides gauging employee work preferences and seeking to accommodate those wishes, Cygni leaders try to foster close relationships among team members. Like other technology consulting firms, Cygni employees typically spend much of their time at client sites and occasionally gather back together at the home office. The difference is that Cygni employees rendezvous more frequently than those at other tech firms, about once every three weeks. And after sharing progress reports and discussing new technology trends, the staff enjoys dinner and beers together. On top of these regular gatherings, the company has a summer party which may include sailing or motor boat racing, an annual kick-off meeting and party at a nice hotel, a winter ski trip and a Christmas party that recently featured a celebrity chef and a cooking contest. All the company-sponsored celebrations show the company understands that employees are human beings, who may need and enjoy social connections through work. Some employees aren t keen on sharing their personal life, but most are, says Cygni s Persson. We want them to at least feel that they can. Why are the best companies in Europe headed in these directions? We see a combination of factors behind greater trust and greater respect for individuals: AWARENESS There is increased awareness among company leaders globally of the importance of a high-trust workplace culture. Trust is top of mind for today s executives worldwide, according to a PricewaterhouseCooper report last year, which surveyed 1,330 CEOs in 68 countries. Continuing public scandals have contributed to heightened consciousness about the significance of a high-trust culture, says Tom O Byrne, CEO of Great Place to Work in the UK. These include the revelations of LIBOR manipulation, serious failings in the National Health Service in the UK and phone hacking by News Corp. Says O Byrne: These all shook the general public s trust in business leaders, government officials and the media and also made people more aware of the behaviour of those in positions of responsibility and the impact that failing to act with honesty, transparency and integrity can have. EVIDENCE The evidence is mounting that great workplaces ones with high trust and engagement - lead to better business results. To name just a few examples in Europe, Danish Best Workplaces last year posted more than 3 times the revenue growth of Danish companies overall; Italy s

15 15 Best Workplaces have posted better revenues than their competitors in the same industry for six straight years; and research from Engage for Success, a government-supported initiative, has documented a link between employee engagement (which is driven by high-trust workplaces) and organisational performance. In addition, great workplaces tend to bounce back from economic downturns better than other organisations in terms of stock performance. Ireland s best workplaces are proving this resiliency point further, says John Ryan, CEO of Great Place to Work in Ireland: While our Best Workplaces have been affected by what has happened on a global level and have had to make tough decisions, they are more adaptable to the changes because of the high levels of trust in the relationships that exist in the organisation. LABOUR MARKETS The war for talent is heating up amid economic growth in much of Europe. After real GDP contractions in the 18-country Euro Area in 2012 and 2013, economic growth is forecast for nearly all European countries this year and the next. The pick-up in business activity is tightening labour markets, especially in high skill areas, which is pushing organisations to do more to attract and retain staff. This dynamic appears to be under way in Poland s information technology sector, says Maria Zakrzewski, CEO of Great Place to Work in Poland. While the Polish IT industry is growing, the country s young technology specialists (who have a reputation for strong knowledge and skills) are tempted to leave the country for higher-paying jobs in Western Europe. This option, Zakrzewski says, is probably spurring local IT firms to improve their workplace cultures. At the same time, salary budgets in much of Europe remain constrained, which puts great workplaces that care for individual employees at an advantage, says Erik van Riet, CEO of Great Place to Work in the Netherlands. New talents search for companies where they can grow on a personal level, van Riet says. There is no money any more for high bonuses, so the culture of the organisation is getting more and more important. GEN Y The Millennial generation is demanding better workplaces. In Europe and around the world, the cohort of people in their mid-30s and younger is pushing employers to pay more attention to work-life balance and social responsibility. Marketing itself will no longer be enough to satisfy the expectations of future employees, says Doris Palz, General Manager of Great Place to Work in Austria. Generation Y does not only search for a job, they search for a fulfilling activity that they can be proud of. Topics like health and work-life balance are key in companies that want to be top concerning the quality of their workplace culture. 100 Best Workplaces in Europe 2014

16 16 EMPLOYEE GRATITUDE High-trust cultures aren t just about what management does for employees. They also reflect employee gratitude and reciprocation especially in difficult times. Although economic downturns can erode workplace cultures, organisations that take care of their employees amid crises can bolster trust. In a number of European countries that have weathered political and economic challenges, employees at great workplaces appreciate their companies more deeply, says Dimitris Ganoudis, General Manager of Great Place to Work in Greece. When companies resist the demolition and deterioration of actual working regulations, this makes employees more likely to reward the company in return. They are more conscious of the benefits and the treatment they have to their companies. Adds Sandrine Lage, Director of Great Place to Work in Portugal: Within a crisis context, with a lot of unemployment, employees value more their own employment and, in particular, their special benefits. WELLBEING The emergence of a wellbeing movement is nudging organisations to improve their cultures. Levels of stress have risen at organisations globally as companies have asked employees to do more with less and the growing use of mobile devices has led employees to feel pressure to be always on. In response, people have placed more value on physical and mental wellbeing. Great workplaces in Europe are embracing this trend. Backed by research that relaxation and meditation techniques translate into better business results, Italian best workplaces are doing such things as providing yoga classes, mindfulness workshops and emotional intelligence training, says Alessandro Zollo, CEO of Great Place to Work in Italy. Workspaces are changing to allow people to find self-awareness, physical well-being and, most importantly, psychological well-being that puts managers in the condition to make better decisions and employees in general to work without worries and with a smile. MOMENTUM Once an organisation develops a positive workplace culture, that culture tends to continue getting better. This positive, upward spiral owes both to management and employees. Managers make improvements to the work environment based on measurements of their culture, including the Trust Index and Culture Audit (Great Place to Work s assessment of people management practices and policies). And employees of great workplaces take increased ownership of their cultures. They chip in to advance the organisation and feel greater appreciation for their work setting. In a number of European countries, a cadre of companies consistently make the list of the best workplaces.

17 17 And those organisations often show much higher levels of trust than firms just beginning efforts to build a healthy culture. The gap gets bigger, says Michael Hermann, CEO of Great Place to Work in Switzerland. Some best workplaces improve while the new participants tend to be lower. Momentum toward ever-better workplace cultures is helping Europe s best workplaces take advantage of an improving business climate. Most of the region s companies are only just now emerging from a defensive, bunker mentality in the wake of the economic crisis of 2008 and downturns of 2012 and 2013, says van Riet of Great Place to Work in the Netherlands. The workplace agenda of most of these companies tends to be limited to discrete programs such as flexible work arrangements. But the best workplaces have a more expansive vision. They are taking responsibility for the wellbeing of their workforce and other stakeholders, and they are setting their sights high for business success. The change is from surviving to living, he says. I wouldn t say enjoying, but maybe that s the next step. We also can expect the Great Place to Work movement to keep gaining momentum in the region. Europe s Best Workplaces are committed to taking their cultures to the next level, and they are serving as role models for their business peers, says Nicolás Ramilo Méndez, CEO of Great Place to Work Spain. In Spain and in many countries in Europe, a lot of companies have been working with us for many years and are making big efforts to be better each year. These companies then inspire the others that want to start this continuous improvement process and start the journey to a great place to work, Ramilo Méndez says. Year after year we are still sometimes surprised by the motivation of the best organisations to make things better. In Europe and throughout the world, we see the dawning of what we call the The Great Workplace Era. The factors behind higher trust levels and greater respect for the individual at the best workplaces (along with the emergence of technologies that provide unprecedented transparency into organisations) are pushing all companies to become better workplaces. The Great Workplace Era is a time when all people can expect to work for an organisation where they trust their leaders, enjoy their colleagues and take pride in what they do. A time, in other words, when workplaces make the world better, says China Gorman, global CEO of Great Place to Work. This era is arriving in Europe and other parts of the globe. And it s good news for everyone. 100 Best Workplaces in Europe 2014

18 18 Country-by- Country Trust Findings In this section we analyse the best workplace trust level trends in select countries.

19 19 Poland Poland s Best Workplaces demonstrated the strongest grain in trust levels over the past five years in all of Europe. The country s benchmark Trust Index score rose from 68 in 2009/10 to 80 in 2013/14, for an 18 percent gain. Maria Zakrzewski, CEO of Great Place to Work Poland, says the country s consistent economic growth over the past five years and the resulting tighter labor markets in at least some industries--has helped convince business leaders to seek to be employers of choice. Another development propelling trust levels in Poland s best workplaces is the way executives of some firms have embraced the great workplace concept with passion and persistence. For example, Marcin Ochnik, president of national leather clothing retailer Ochnik, showed his commitment to open dialog and listening to employee concerns through a roadshow in recent years in which he has visited nearly all of the company s 70 stores throughout Poland. Ochnik also has run culture workshops in hotels and conference centers during which he met every single employee in the company. It was a lot of effort, Zakrzewski says. It s a matter of determination and believing that this is something worth doing. Poland s Best Workplaces: Trust Index Benchmark 2009/ / / / / / / Best Workplaces in Europe 2014

20 20 Sweden Sweden s Best Workplaces posted a strong gain in trust levels between 2009/10 and 2013/14. The country s benchmark Trust Index score rose from 79 to 87, for a 10 percent gain. Maria Grudén, CEO of Great Place to Work in Sweden, says competition for top talent is growing in the country, pressuring companies to improve their cultures. Professional services firms are leading the way in terms of building great workplaces, she says, given the importance of people to their business success. They live off the competencies of their employees, she says. Another factor at work in Sweden s best companies is a trend to give employees greater ownership of their work. The leaders of the future give employees the trust to carry out the work from start to finish, Grudén says. Important here is increased amount of information given to employees and increased amount of input from the employees into the decision making process. If employees know where the company is going, and what is expected of them as individuals, they can better take responsibility for their tasks and virtually act as their own CEOs. Sweden s Best Workplaces: Trust Index Benchmark 2009/ / / / / / /14

21 21 Spain Spain s Best Workplaces recorded a nine percent increase in trust levels over the past five years. The country s benchmark Trust Index score rose from 77 in 2009/10 to 83 in 2013/14. Nicolás Ramilo Méndez, CEO of Great Place to Work in Spain, says that in the wake of economic difficulty a new attitude is emerging among business leaders. More and more companies are adopting a people management model that blends business successes with employee satisfaction. Other factors behind the country s rise in trust are increased investments in training, a greater commitment to work-life balance and heightened attention to ethics among leaders. During the last five years a growing number of workplaces have improved or communicated better about their ethics code, Ramilo Méndez says. Moreover Spanish companies now have more honest and ethical management, where the leader has a clear and key role in creating a great place to work. Spain s Best Workplaces: Trust Index Benchmark 2009/ / / / / / / Best Workplaces in Europe 2014

22 22 Finland Trust levels at the Best Workplaces in Finland rose between 2009/10 and 2013/14. The country s benchmark Trust Index score increased from 83 to 89, representing a 7 percent gain. Information technology companies and large retail businesses are leading the way in terms of building positive work cultures in the country, says Mona Rundberg, CEO of Great Place to Work in Finland. The Finnish government also is propelling the great workplace movement, she notes. The government has set a target to have Europe s best working life by the year Increased competition to earn a spot on Great Place to Work lists in Europe is pushing trust levels among the Best Workplaces higher, Rundberg says. So is a more human approach to management. Employees are seen and treated more as individuals, not only as employees. It s seen in the ways management builds trust in their organizations, Rundberg says. They do start to understand better that it is up to their employees to make a good business or a bad business a manager cannot make a successful business by himself anymore. Finland s Best Workplaces: Trust Index Benchmark 2009/ / / / / / /14

23 23 The United Kingdom The Best Workplaces in the UK demonstrated a significant increase in trust levels between 2009/10 and 2013/14. The country s benchmark Trust Index score rose from 80 to 85, representing a 6 percent rise. Rising awareness of the importance of trust in organisations and of the link between high-trust cultures and employee engagement and subsequently business performance--helps explain the progress, says Marianna Roach, Research Manager at Great Place to Work UK. Roach notes that employee engagement scores in the UK and Europe overall have remained stagnant or decreased over the past five years, while the engagement scores of Best Workplaces have tended to rise. That has to do with the effectiveness of the Great Place to Work model, she says. The Trust Index survey helps organisations understand their challenges and the Institute s consultants help them address the issues identified, Roach says. The economic downturns of recent years have helped convince companies to become great workplaces, Roach adds. It is clear from our data that the Best Workplaces are better equipped to deal with challenges such as the recent recession. They lead by example in creating the right conditions for improving trust and engagement in their organisations and thus creating a key competitive advantage. The UK s Best Workplaces: Trust Index Benchmark 2009/ / / / / / / Best Workplaces in Europe 2014

24 24 Italy Italy s Best Workplaces increased their trust levels between 2009/10 and 2013/14. The country s benchmark Trust Index score rose from 71 to a high of 77 in 2011/12. Although the benchmark has slipped the past two years, it nonetheless finished at 75, for a 6 percent gain compared to 2009/10. Continued strong business results of Italy s Best Workplaces helps explain their progress. Best Workplaces in Italy as a group posted revenue growth of 6.2 percent during the 2012/13 period. Their industry peers, in contrast, suffered a revenue decline of 4.3 percent. Alessandro Zollo, CEO of Great Place to Work in Italy, says one secret of the country s Best Workplaces is investing in training. The annual average hours per person dedicated to training jumped by 9 percent last year, from 57 to 62. And much of the training focuses on mindfulness, as leading companies address the stress common in today s business climate. In this time of crisis they need people who are more serene, who are willing to change quickly and react proactively to tough situations over extended periods, Zollo says. Italy s Best Workplaces: Trust Index Benchmark 2009/ / / / / / /14

25 25 Greece Greece s Best Workplaces saw solid improvement in trust levels over the past five years. The country s benchmark Trust Index score rose from 82 in 2009/10 to 86 in 2013/14, for a four percent gain. Dimitris Ganoudis, General Manager of Great Place to Work in Greece, says the positive trend has to do with employees recognising the magnitude of the country s financial challenges, and appreciating the way great workplaces have cared for them amid the crisis. While even the best workplaces can suffer trust declines when taking cost-cutting steps such as layoffs, the gravity of a country s economic difficulties can lead employees to appreciate good workplaces. And Greece s best workplaces have done right by employees during the difficulties, which have included fears of a national default and an unemployment rate of nearly 30 percent this year. Among the positive steps Greek companies have taken in recent years are fostering camaraderie among colleagues and communicating often and honestly. Companies which communicate continuously with their employees for all matters enjoy a positive level of trust, even if they proceed with layoffs, Ganoudis says. Companies which are afraid to communicate, because they cannot guarantee the jobs of employees and they cannot handle this situation, lower trust. Greece s Best Workplaces: Trust Index Benchmark 2009/ / / / / / / Best Workplaces in Europe 2014