A great place to work

Although some of Fortune magazine's top 100 best companies to work for offer unusual perks such as scuba-certification classes and meditation rooms, it's not the bells and whistles that probably got them there in the first place.

The real secret to being a good place to work?

"People are treated with respect, dignity, flexibility," said Richard Hansen, CEO of Johnson Financial Group, one of three Wisconsin companies to make this year's list. "It's really not all that complicated."

Hansen said his company's business model aims to offer its clients satisfied, motivated associates, producing low turnover rates in employees and customers.

"The focus is on being a good place to work," Hansen said, noting a company needs to take the best care of its people that it can and also deliver to the clients what they expect.

Johnson Financial Group, based in Racine and including three Madison branches, ranked 37th on the Fortune list. S.C. Johnson & Sons, also based in Racine, ranked 27th. Financial management firm Baird, based in Milwaukee, with two Madison locations, ranked 39th.

The recent honor marks Johnson Financial's first appearance on the Fortune list, and is admittedly a big deal to the company. Although it's been recognized by many regional and state groups, Hansen said this is the first such national attention.

"We probably maybe dreamt of it before," he said.

Badge of honor

Baird has not only dreamt of the honor -- this year's ranking marks its fifth consecutive year on Fortune's list.

"It's the biggest badge of honor," said Leslie Dixon, Baird's chief human resources officer.

"A lot of what we now understand as a great place are things we have believed in and worked for ... for a long time," she said. Part of the company's mission statement includes being a great place to work, Dixon said.

As a result of the company's repeat appearances on the list, Dixon said she's been asked by several companies to talk about its success. She advises, first and foremost, that a company must be willing to honestly assess where it is before it can decide how to get to where it wants to be.

"You have to know where you're at in your employees' perceptions," she said. Employee surveys -- including the one used to score companies for the Fortune list -- are readily available and crucial as background. "You draw your own road map by getting that data."

Dixon said companies can't ignore the importance of business climate in attracting and keeping quality employees.

The 'war for talent'

"You can make a more valid argument today than ever before about why companies should care about this," she said. "The war for talent truly is going on. It's not really just about a nice thing to do."

But it is at least partly about doing the right thing.

S.C. Johnson & Son chief spokeswoman Kelly Semrau echoed Hansen's comments about the key to being a sought-after workplace.

"Being a best place to work is about having a culture of respect, integrity and fairness," she said. "It's not only who we are as a family company, but it's also the right thing to do."

S.C. Johnson & Son had the lowest voluntary turnover of any of the companies on the Fortune list with 2 percent. Baird had 8 percent and Johnson Financial had 9 percent. Semrau pointed to that figure as indicative of how the company's environment is effective.

"When you have a culture of innovation that offers employees flexibility and programs that meet the needs in their lives, employees are enabled to do their best work.

"Our culture and innovative programs enable us to recruit and retain the best talent," she said. "With a 2 percent turnover rate, the organization doesn't need to continuously be training new employees and going through the hiring process."

Culture and environment

Johnson Bank-Madison President Greg Dombrowski said his company performs a fairly comprehensive series of interviews before hiring to help ensure there's a good fit on both sides. He wants potential employees to have a real sense of what it's like to work for Johnson and for the company to know how those people will work well as associates.

"Culture and environment, that's where the make or break is," he said, noting a Johnson family motto of "Let's create a good work environment and the rewards will come to us."

Dombrowski said the fact that two of the state's three recognized companies are owned by the same family is no coincidence. When Dombrowski met with the late Sam Johnson 12 years ago, he said they didn't talk about financial matters, but rather about Johnson's father, grandfather and the family legacy.

"It was all about value, but not about profit," Dombrowski said. That commitment from the company's owners is something that helps associates feel connected to the business.

"They (the Johnson family members) understand that with wealth comes responsibility and they convey that," he said. "I think our associates feel a true warmth and commitment to the Johnson family."

Climate of respect

Consultant Dan Stahl agreed with the Wisconsin Fortune companies when it comes to the importance of a pervasive, if sometimes elusive, climate of respect.

"How the organization treats people and respects them ... that's what I think differentiates the best organization from those who are aspiring," said Stahl, president of the consulting and recruiting firm Human Resources Group Inc.

"I think the challenge is finding ways to help individuals fulfill their expectations while fulfilling the organization's goals."

"It seems like such a simple formula," he said. "(But) it is tough for companies to get it right."

To Hansen, just participating in the Fortune survey was a reward. The format prompted management to address questions that were strategic, long term and open-ended.

"The effort and energy it takes (to respond) is a good exercise itself," he said. "We have a really nice, thorough, thoughtful read that is worth looking at."

Hansen said he'd love it if more companies took their corporate culture this seriously, placing value on "the subtleties of genuinely being a workplace of choice."

"We would rather compete against great competitors," he said, noting the market would benefit from better quality overall.

Dixon, too, thinks more companies should take the next step toward improving their operations.

"You don't have to do it all," she said. "It's an evolution that takes time."

Dixon thinks some companies figure they can't match the perks or environment of a company like Fortune's No. 1 Google, so they don't reach out for any improvement.

"I think it just comes down to being afraid," she said, advocating that companies need to keep things in perspective instead.

"If we do A and B, we'll be that much better," she said. "You bite off a little bit at a time."

How the companies were chosen

Fortune partners with Great Place to Work Institute to conduct the most extensive employee survey in corporate America.

Of some 1,500 firms that were contacted, 407 companies participated in this year's survey. Nearly 100,000 employees at those companies responded to a 57-question survey created by the Great Place to Work Institute, a global research and consulting firm with offices in 30 countries.

Most of the company's score (two-thirds) is based on the results of the survey.

The other third of the scoring is based on the company's responses to the Institute's Culture Audit, which includes detailed questions about demographic makeup, and pay and benefit programs, as well as a series of open-ended questions about the company's management philosophy, methods of internal communications, opportunities, compensation practices, and diversity efforts, etc.

Any company that is at least seven years old with more than 1,000 U.S. employees is eligible.

— Robert Levering and Milton Moskowitz, the Great Place to Work Institute

S.C. Johnson & Sons, No. 27
Racine

• 3,419 U.S. employees, 8,561 outside U.S.
• 2 percent turnover
• 2006 revenue $7.5 billion
• S.C. Johnson & Sons came in at No. 20 on the list, with an average annual salary of $110,587 for a senior research scientist.

Johnson Financial Group, No. 37
Racine

• 1,259 U.S. employees, 88 outside U.S.
• 9 percent turnover
• $212 million in revenue
• Johnson Financial Group was at No. 25, with $104,561 for a commercial relationship manager
  

Baird, No. 39
Milwaukee

• 2,093 U.S. employees, 79 outside U.S.
• Voluntary turnover 8 percent
• 2006 revenue, $656 million
• Baird ranked No. 16 on the list of average annual pay, with a figure of $123,800 for a financial analyst.

Lisa Maddux is a Portage freelance writer.