Becoming an Employer of Choice: 4 Top Tips for Business Leaders

Steve Arizpe | President & Chief Operating Officer?

What does it mean to be an employer of choice? Employers of choice rank high in employee engagement, job satisfaction and retention, while job seekers eagerly apply for open roles at these organizations where they look forward to working one day.?

At Insperity, being an employer of choice is something we don’t take lightly. In the past year, the company has received recognition numerous times as a top workplace, including mentions on Glassdoor’s “Best Places to Work in the U.S. 2024” and U.S. News & World Report’s “Best Companies to Work for 2024” lists, Newsweek’s Excellence 1000 Index, and a Great Place to Work? certification. And while I feel fortunate to have worked for this company for the past 35 years, these achievements did not come without hard work and perseverance.?

Some small and midsize business owners may feel they lack the resources or longevity to become an employer of choice. However, this is a misconception, as the employer-of-choice status focuses on something that every organization possesses: people. In fact, Insperity’s Total Rewards report shows that 23% of top-performing companies emphasize people over results compared to only 11% of standard performers. By maintaining a people-first philosophy, companies prioritize their most important asset, while employees (both current and prospective) elevate the employer’s brand and reputation.?

Let’s look at four commonalities that employers of choice share, and what business leaders can do to achieve similar results.?

Strong Workplace Culture?

Most people know workplace culture as a shared set of beliefs, behaviors and practices that determine how employees behave and how an organization operates. But a truly great culture transcends this definition. Metaphorically speaking, if a company is a finely tuned race car, the culture is the oil that makes the engine run. And like any engine, a great culture requires maintenance to perform at its peak.?

Workplace culture must be protected, and not just by management. It’s the responsibility of all employees to keep the culture running like a well-oiled machine, and this means not being afraid to call attention to anything that may run counter to the company’s culture and values. Similarly, leaders must ensure that workers feel comfortable speaking up by listening to and acting upon employee feedback in order to maintain a work environment where everyone feels safe and secure. In a recent survey Insperity conducted for its Business Outlook Report 2024, nearly six out of 10 business and HR leaders said their organizations have implemented or considered leadership open-door policies to improve workplace culture.?

Another way employers can protect the culture is to hire for cultural fit. When possible, management should consider promoting from within. The advantage of promoting current employees into open roles is that there’s already a culture fit. Every company experiences challenges, and this is when employees and leaders should feel most comfortable with those they work with. By hiring to the culture and focusing on the values upon which the company was founded, the culture is protected and strengthened.?

Recognition and Appreciation?

In order for a business to become an employer of choice, its employees must remain engaged and motivated, and recognition is a key driver of employee engagement. According to a Quantum Workplace study, employees who believe they will be recognized are 2.7 times more likely to be highly engaged. The days of simply providing workers with a paycheck and expecting them to be satisfied are in the past. Employees want to know they’re making a difference and that their work is contributing to the company’s overall mission. They want to feel engaged. They want to feel respected. And most of all, they want to feel appreciated.?

Employers can recognize employees’ achievements and contributions in a number of ways. These can range from a simple thank-you email or verbal acknowledgement in a team or company meeting to bonuses or financial incentives. Top talent has choices, and they want to work for an organization that celebrates their hard work and accomplishments. Leaders must understand that a company can’t achieve employer-of-choice status without recognizing and appreciating those who make it great.?

Clear Expectations and Feedback?

Employees need to know what is expected of them in order to thrive, and this requires regular feedback from managers on their performance. According to Gallup’s book Culture Shock, 80% of employees who have received meaningful feedback in the past week are fully engaged with their work.?

However, this level of engagement doesn’t occur by providing feedback only once a year during a performance review. To be truly effective, managers must set clear expectations and provide feedback frequently. In fact, Gallup states that when feedback is provided daily rather than annually, employees are 3.6 times more likely to feel motivated to do outstanding work. This constant feedback allows teams to make changes and adjustments quickly, giving businesses a competitive edge. Additionally, regular interaction with managers accompanied by meaningful feedback fulfills employees’ need for purpose-driven work. By tying employee behavior to corresponding feedback and ensuring they are as close together as possible, companies move one step closer to becoming an employer of choice.?

Listening Strategy?

Business owners who truly care about their people must develop a listening strategy to monitor employee satisfaction and wellbeing. Just as workers require feedback on their performance to excel at their jobs, so too do company leaders. One method of achieving this can be thought of as “management by walking around,” which simply involves interacting with employees and asking how they’re doing. Informal conversations in the elevator, cafeteria or while walking past employees’ cubicles can provide valuable insight into workers’ successes and challenges, while sending the message that leadership cares about more than just maximizing profits.?

For employees who work remotely or maintain hybrid schedules that prevent frequent interaction with management, regular town hall meetings and virtual team-building activities can help facilitate the interaction that their location may hinder. Additionally, employee surveys can be an effective tool for providing feedback to leadership. Business owners who send out surveys asking about company culture, processes and job satisfaction allow employees to feel heard, regardless of their location.?

There are always opportunities for companies to improve, and a key listening strategy highlights these opportunities. However, the willingness to act upon the feedback that leaders receive and make changes as necessary are what separates average employers from outstanding ones.?

In Conclusion?

Becoming an employer of choice is not easy. But the common trait all employers of choice possess is the prioritization of their employees, and those employees then position the company as one where people want to work. Business leaders should always keep their employees in mind? when making decisions that are in the best interest of the company. Learning to balance these two responsibilities successfully is the most challenging thing a leader must do, but also the most rewarding.?

Want more information on becoming an employer of choice? Read our free magazine, The Insperity guide to being a best place to work. Also, visit Insperity’s career page to learn more about the benefits we offer to attract and retain top talent.?

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