The impact of financial performance on the best company to work for ratings

Abstract

Best Company to Work For (BCTWF) survey promoters argue that participation in the survey results in higher productivity and profitability of organisations. The BCTWF survey essentially follows the universalist Human Resources Management (HRM) approach and this is in conflict with the contingent HRM view. The research investigated whether participation in the BCTWF survey leads to superior financial performance. Data from thirty two companies was eventually used in the research. Bivariate fits and pairwise correlations are examples of two of the statistical tools that were used to establish if a relationship exists between the BCTWF rankings and various financial ratios. The research showed that good financial performance does lead to a high rating in the BCTWF survey and that a higher ranked company does not necessarily perform financially better than a lower ranked company.<p/>