Lessons from the 2024 Best Companies to Work for

We’ve entered an era where many employers recognize talent as the asset that drives the bulk of their business’s success. And if you hope to realize the competitive advantage your employees can deliver, you must invest in them in more ways than one. The days of pizza parties and employee-of-the-month bulletins just don’t cut it anymore—and the companies leading the pack on transformative people practices have known this longer than those that aren’t.

Fortune released its 100 Best Companies to Work For on April 4, and its awardees have delivered a masterclass in how to thrive in today’s tumultuous and competitive business environment.

How Does the List Get Determined?

Great Place To Work® uses a multifaceted methodology, centered around its Trust Index™ survey, to unearth what constitutes a great workplace. They gather and analyze feedback from employees throughout the organization on their perceptions of trust, respect, fairness, pride and camaraderie. The evaluation also integrates company-submitted essays describing organizational strategies and programs.

To make the cut, companies must excel in several areas. These include employee satisfaction, inclusive and supportive cultures, robust benefits and compensation packages, opportunities for professional development, strong leadership and management practices, and a commitment to corporate social responsibility. Together, these elements create an environment where employees feel valued, engaged and motivated to contribute to their company’s success.

What Can Employers Learn from the Winners?

Companies on the 100 Best list are well-positioned to successfully navigate the constantly evolving business environment—and to do so with a competitive advantage.

The 100 Best Companies’ stock performance is nearly four times better than the market. Moreover, more than 80 percent of employees at these companies say people give extra effort on the job, adapt quickly to change and participate in innovation activities.

Companies small and large can glean insights from these practices and find ways to integrate them to create a competitive employee experience. They’ll also reap the benefits that come along with being a leading employer.

Ready to Get Started?

SHRM can help. We’ve rounded up our latest research and resources related to key themes exhibited by the 2024 100 Best Companies to Work For.

Build Trust in Leadership

Within the 100 Best, these behaviors have remained stable since 2019. Management follows through on promises, asks for (and responds to) suggestions and ideas, keeps people informed about important business changes, and does what they say they will. Employees at Synchrony, No. 5 on the list, refer to the workplace as a family. They say leaders truly care for the employees, inspiring pride and long-term loyalty.

When leaders win their team’s trust, they unlock growth. Trust breeds confidence, and when employees believe in their leaders, they’re more invested, creative and willing to go the extra mile. For HR pros and employers, focusing on building trust isn’t just good vibes—it’s strategic, leading to a more committed, productive workforce and, ultimately, charting a course for sustained business success.

[SHRM members-only toolkit: Developing Organizational Leaders]

Offer Flexibility with Hybrid Work

Nearly all of the Fortune 2024 100 Best Companies to Work For are committed to hybrid work, exemplified by No. 4 American Express, where employees say flexible working arrangements allow them to balance their personal and professional needs.

[SHRM members-only Express Request: Leading a Hybrid Work Environment]

Going hybrid can benefit both sides of the desk. Employees with schedule flexibility are happier and less stressed. It’s not just about comfort, though; feeling trusted to manage their time encourages employees to ramp up their game, sending productivity through the roof. On the flip side, companies get to fish in a bigger talent pool, save a bundle on office space, and build a team culture that’s all about trust and smashing goals. It’s a win-win that’s reshaping the future of work, making offices and home desks the perfect team.

While only two of the 100 Best require employees to work in the office more than three days a week, hybrid work may not work for all organizations. There are considerations employers must make when determining if hybrid meets the needs of their business, including the industry, nature of work, or possible reduced collaboration and innovation opportunities.

[Viewpoint: Embrace Hybrid or Not? That Is the Question]

Pay and Benefits Still Make a Difference

Pay and benefits play a critical role in showing employees you care and in driving well-being. Financial concerns and persistent high costs of living—which other reports suggest are causing a significant number of employees to live paycheck to paycheck—are the top reasons for poor mental health among employees in 2024.

Organizations can adapt their benefits packages to further the success of both their workers and their businesses. SHRM members can use the findings from the SHRM Employee Benefits Survey to rate their offerings against those of their peers.

Offering a killer compensation and benefits package bolsters your reputation as a top-notch place to work, pulling in the best of the best talent. See what employees at No. 7 Accenture are saying.

[HR Magazine: Bring Your Compensation Strategy Up-to-Date]

Finally, different generations prefer different benefits. The youngest generation in today’s workforce craves stability, due largely to the perma-crisis in which they’ve grown up. They’re planning ahead and asking assertively for support. For example, Handshake, a student and emerging professional job board, reported two-thirds of Gen Z won’t work for an employer that doesn’t offer a 401(k).

[HR Magazine: Managing the Next Generation]

Invest in Your People

Take it from Hilton, coming in at No. 1 on the 100 Best: Actively developing people’s careers not only makes folks more invested in their work, but it also ensures their goals and the company’s direction are in sync, making the whole organization stronger. By giving their teams the ability to ramp up their skills and climb the career ladder, companies boost employee happiness and keep them around longer. Productivity gets a boost as well, helping the company hit its targets.

[SHRM members-only toolkit: Developing Employee Career Paths and Ladders]

[All Things Work: Skills-Based Hiring Is Gaining Ground]

[SHRM Executive Network: Build an Internal Talent Marketplace to Empower Workers, Reduce Turnover]

[HR Magazine: Mentorship Models for a Diverse Workforce]

Show Them You Care

More than half of employees (57 percent) are experiencing at least moderate levels of burnout, according to a recent report from Aflac. Meanwhile, employee confidence in their employer’s concern for them has declined significantly: 48 percent said they have confidence in their employers caring about them in 2023—down from 56 percent in 2022 and 59 percent in 2021. Earlier this year, Aflac CHRO Jeri Hawthorne shared, “Mental health—and areas around helping reduce stress and improve emotional wellness—will be a massive focus for the next year.”

Creating a workplace that looks out for everyone’s mental health and well-being isn’t just good vibes; it’s smart business. For example, Cadence, ranking No. 9 on the 100 Best, hosts “Global Recharge Days” once a month, giving employees a day off without having to use their own paid time off. When folks feel cared for and know their well-being is a big deal at work, they’re not just happier—they stick around longer, dig deeper into their work, and bounce back faster. For companies, this means less time and money spent on finding new hires and more on growing the business.

[SHRM research: Work Is Negatively Impacting Employees' Mental Health]

[SHRM members-only toolkit: Creating a Mental-Health-Friendly Workplace]

[All Things Work: Isolation to Inclusion: Fostering Meaningful Relationships at Work]

Ashley Miller is director of content strategy at SHRM.