San Francisco, CA (PRWEB) March 15, 2005
Stocks of the public companies on FortuneÂs Â100 Best Companies to Work forÂ list produced more than 3 times the gains of the broad market over the last seven years, according to a study released by Great Place to Work Institute and Russell Investment Group. The study suggests a strong link between workplace culture and a businessÂs financial performance.
ÂGreat workplaces have significant competitive advantages as a result of the high trust relationships between employees and management,Â says Amy Lyman, Ph.D., President and Co-founder of Great Place to Work Institute, the firm that selects companies for the Fortune list. ÂTrust can contribute to higher levels of cooperation, greater commitment, lower employee turnover, decreased use of sick time and improved customer support.Â
Russell analysts compared the performance of a stock portfolio based on the Â100 BestÂ list to the performance of the Russell 3000 Index (representing the broad US equity market) and the S&P 500 (representing large-cap investments). The study found that the Â100 BestÂ portfolio, adjusted annually to reflect changes to the list between 1998 and 2004, provided a cumulative return of 176%, compared with lesser gains of 42% for the Russell 3000 and 39% by the S&P 500. An initial investment of $1,000.00 on January 1, 1998 in publicly-traded companies on the Â100 BestÂ portfolio, adjusted annually, would have risen to $2,760.04, versus $1,415.62 for the Russell 3000 and $1,387.70 for the S&P 500, by December 31, 2004.
Wegmans Food Markets, a privately held nationwide grocery chain, earned the number 1 spot on this year's Fortune "100 Best" list. President, Danny Wegman says "Our commitment to maintaining a great environment for employees delivers clear financial benefits and is a permanent part of our business strategy.Â Wegman and other leaders of the nation's best workplaces will meet in San Francisco this April 20-22 to talk about the role trust plays in their organizations, share how they create and lead their great workplaces, and discuss the business benefits they experience through their investment in employees. A complete list of speakers and agenda topics can be found at http://www.greatplacetowork-conference.com.
About Great Place to WorkÂ® Institute
Great Place to Work Institute, Inc. is a global research and consulting firm dedicated to Âbuilding a better society by helping companies transform their workplaces.Â Through its education, consulting, and best companies list activities, Great Place to Work Institute recognizes the worldÂs best workplaces and provides information and advisory services to those who seek to create great workplaces of their own. In addition to its global headquarters in San Francisco, Great Place to Work Institute has 26 affiliates in countries throughout North America, South America, Europe and Asia. http://www.greatplacetowork.com
Great Place to WorkÂ® Institute
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