If a company treats its employees well, what does that say about a brand?
Recent studies show that consumers are more likely to purchase from brands if employees are treated well. Further, they may even be willing to pay more and recommend the company’s products or services to friends. Should a business aim to bolster its brand through better worker policies and practices? If you’ve ever experienced the challenges of recruiting and retaining great people at your organization, a better question might be: can you really afford not to?
A study conducted in 2016 with Cone Communications intereviewed 1,000 adults uncovering some compelling data on what motivates employees, and it’s not just about financial gain. About 85% were looking at making a meaningful difference through their career. About 76% were looking for meaningful personal experiences, such as meeting new people and exploring new places. Breaking down the survey data looking at the Millennial segment responses, a full 79% consider a company’s social and environmental commitments when deciding where to work. They are also more likely to be loyal when they feel they can make a positive impact on issues at work.79% of Millennials consider social and environmental commitments when deciding where to work Click To Tweet
When a brand takes a stand and is not shy to share its environmental and social commitments, this goes a long way toward attracting and retaining great employees. It attracts consumers and influences their purchases. A study on global corporate responsibility showed that 84% percent of consumers consider a company’s social commitments, including employee treatment, before deciding what to buy or where to shop, and 82 percent consider them when it comes to which products and services to recommend to friends.
Leading Brands: B Corporation examples
To find examples of how leading brands put employees first, I looked at certified BCorps, a network of over 2,000 companies that aim to use business as a force for good. Assessed by a third party, these companies are ranked on their policies and actions related to governance, workers, community and the environment.
Beau’s All Natural Brewing, based just outside of Ottawa, has had incredible year-over-year growth since its inception in 2006. At its 10-year anniversary, the company announced that it would sell the brewery to its employees, shifting to 100% employee ownership. The company decided that keeping the operation independent and Canadian owned was important and it wanted employees to have a shared responsibility in the company’s future and plans for expansion across Canada.
Fairware provides promotional products to North America’s leading change makers. Every product meets the company’s strict environmental and social standards while manufacturers are held to a code of conduct. Fairware’s 12-person team is based in Vancouver and 100% of its employees are paid living wage. It also covers 80% of individual and family health insurance premiums. The company culture reflects its commitment to community and the environment. At its a bike-friendly office in a 100-year old building, the team hosts monthly collective lunches and happy hour with some of the local breweries around the corner in East Vancouver.
Outdoor retailer Patagonia was a pioneer in on-site childcare, being one of the first companies in California to offer it. It extends health care benefits to part-time, retail, and warehouse staff with 80% coverage of health insurance premiums for full-time workers. About 50% of full time employees participate in external professional development, an important incentive that encourages loyalty.
There is a strong business case for investing in your employees and going beyond the bare minimum mandated in our national and provincial employment laws. To build a respected and trusted brand that people love, you need to look within and ensure your employees respect and trust your organization.
Whistler Open Forum Event February 1
Learn more about how putting employees first boosts your brand at the February 1 Whistler Open Forum. Here’s what we’ll cover in this evening session:
- Clarify how your brand is a reflection of your employees along with the benefits of building synergy between them.
- How a ‘living wage’ impacts our local communities and why it is considered one of the best local economic development strategies businesses can implement.
- Ideas on best practices for small and medium sized businesses that you can use to optimize your recruitment and training dollars for an effective retention strategy.
Don’t miss out on the chance to build a stronger brand. Register today.