In a decade marked by a major recession and the wrenching restructuring of American industry, keeping employees happy might seem to be the last thing on anyone’s mind. But in the new “Best Companies,” authors Robert Levering and Milton Moskowitz reach a conclusion that runs counter to conventional workplace wisdom: while most employers still offer “dreadful” work environments, many enlightened bosses are beginning to transcend their marketplace woes, increasing employee participation, improving sensitivity to family issues and adding more fun to the workday. Says Levering: “Companies are realizing that they can’t deliver on the bottom line if they calf t deliver a work force that feels happy and comfortable.”
To find out what makes for happy, comfortable workers, the authors examined more than 400 companies, crisscrossing the country to visit employees at 147 of them. Their favorites ranged from Fel-Pro Inc., an Illinois gasket company that subsidizes college tuition for employees’ children, to Southwest Airlines, where flight attendants are encouraged to deliver stand-up comedy routines and harmonica solos along with the safety instructions. Even in an age of corporate turmoil, the companies with the highest marks were ones that consistently encouraged the staff to, well, gripe. Donnelly Corp., a rearview-mirror maker in Holland, Mich., puts up posters asking workers questions such as “What made you mad today?” and “What is just plain silly?”
Of the 100 companies cited in the original book, only 55 have survived. Exxon, for example, failed to make the cut for allegedly reneging on a longstanding no-layoff policy. (“We’ve never had a no-layoff policy,” says a spokesman.) Levi Strauss & Co., while praised for its generous profit-sharing package, got booted for, among other reasons, a seeming lack of employee loyalty. When the authors visited one of the company’s manufacturing sites in El Paso, Texas, they found that all the assembly-line workers and supervisors were wearing jeans made by the company’s competitors.
Levering and Moskowitz gave high marks to the growing number of companies that share the wealth with workers. Beth Israel Hospital in Boston has employee teams working to cut costs and improve operations; the savings are then divvied up with the employees. Kellogg Co., the cereal maker, maintains a trust fund for retirees who encounter financial problems. Merck, Du Pont, Tandem Computers and Syntex Corp. all offer stock-option plans. Among the biggest wealth sharers: Springfield ReManufacturing, where the rank and file own 30 percent of the company stock, and Microsoft, where an estimated one out of every five employees is a millionaire.
CEOs may have different criteria for a successful company, but Levering and Moskowitz believe that once in a while, an employee’s just gotta have fun. To that end, it bestowed kudos on Johnson Wax, Lands’ End and Tandem Computers (“great swimming pools”) and on Fel-Pro, which gives staffers a pound of Fannie May chocolates on Valentine’s Day and an extra day’s pay on their birthdays. But Ben & Jerry’s, the makers of politically correct ice cream, takes the cake in the fun department. The company holds an annual Elvis Day, featuring-what else -peanut butter and marshmallow sandwiches. It also has an official “minister of joy,” who recently distributed cardboard figures of the face of former CEO Fred (Chico) Lager. The purpose: a “Disfigure Fred’s Head” contest.
How valid a tool is “Best Companies” for rating a good employer? “It’s a hundred good stories rather than a scientifically selected group of the 100 best institutions at which to hang your hat,” says management guru Tom Peters. But, he adds, “it’s nice to have your name in.”
As for the best companies to work for in America in the future? After a few days of basking in his newfound glory, Mike Warren of Alabama Gas is already thinking ahead to the next edition of the book, whose publication date is yet unscheduled. After all, as the likes of General Electric and the now defunct People Express will tell you, getting in once doesn’t mean you’re going to stay there.
Almost 10 years later, rankings of the “100 Best” have changed substantially. Here’s a sample:
Alabama Gas Hershey Foods Motorola J.M. Smucker Southwest Airlines
Apple Computer Eastman Kodak Exxon Fisher-Price People Express
