There are likely few things more frustrating to a company than seeing its competitors touted in one of the ubiquitous "best companies" lists that are popular among business and lifestyle publications. Particularly if the company didn't make the list itself.
But whether or not there is ever consensus on how to determine the "best place to work," a new analysis shows that there are some characteristics that highly-ranked companies appear to have in common.
A survey of 1,528 HR leaders conducted by DDI, a management consulting firm, found strong correlations between certain corporate practices and rankings. The study focused on four different types of rankings: "Best Places to Work," "Most Admired," "Most Innovative," and the "Global 500."
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Some of the practices corresponded to certain accolades, but certain ones were common among all companies that had earned a spot on any best of list.
"Most admired" companies were characterized by data-based decisions, specifically in hiring. The report also found that such businesses got high value from developmental projects. The "best places to work" typically offer employees lots of coaching and mentoring.
Fittingly, companies identified as innovative feature leaders who react well to change and have a firm grasp of customer needs. Such firms also place a lot of emphasis on measuring the impact of programs.
Companies on the Global 500 make regular use of outside coaches and online learning tools. Leaders at such companies are also well-equipped to anticipate challenges brought on by international economic and political forces.
Among the many characteristics that were common to all companies that landed on a best of list were a heavy use of developmental assignments, a high level of readiness for global expansion and a heavy use of formal leadership training.
Evan Sinar, DDI Chief Scientist, said he hoped the report would help businesses better understand the keys to corporate excellence.
"There's more than ping-pong tables and open workspaces to being named a best-ranked company and we want to pull back the curtain on the leadership secrets to making these lists," he said.
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