If you think there is a simple recipe for becoming a top-ranked employer, you won't find it in this year's Best Companies survey. As in the previous two years, the Top 50 are a very diverse group, with headquarters from Victoria to Halifax, and in businesses that range from travel to banking to selling chocolates.
Again this year, the ranking was compiled by R.O.B. Magazine and the international consulting firm Hewitt Associates (see page 52). We expanded the list to 50 from 35, for two reasons: There were more participants, and the scores across the board were higher. "The competition is much tougher," says Leslie Dutton, a consultant with Hewitt.
Although the 50 Best pay better than the rest of the companies in the survey and provide perks others do not, those factors were not decisive. Measures of employee morale made a bigger difference. Several parts of the survey dealt with employees' perceptions of their CEO, their relationships with co-workers and their opportunities for advancement. To give you a taste of this, we have profiled five companies in more detail: Flight Centre Ltd. (this year's No. 1), Eli Lilly Canada Inc., Wal-Mart Canada Corp., Golder Associates Ltd. and Federal Express Canada Ltd.
Different companies strengthen that "we're-all-in-this-together" feeling in different ways. At Flight Centre (page 44), the Australian-owned budget travel agency, staff get a small base salary plus commission, and there are no company cars or on-site daycare. Managers have no offices and take out their own trash. But Flight Centre chooses its eclectic staff carefully, there is constant encouragement from the top, and there are monthly parties called "buzz nights." Company awards nights may sound corny, but Dutton says "it's less about the event than the recognition."
At Eli Lilly Canada (page 49), the subsidiary of the huge multinational pharmaceutical company, the approach is much more formal. In a 1996 internal survey, the company found that the role of immediate supervisors is crucial. So Lilly upgraded supervisors' management skills. To help with work-life balance, Lilly offers take-home meals for $3.50 apiece.
Still, some programs and perks clearly set the 50 Best apart: 52% of them have on-site fitness facilities, versus 26% for the other companies in the survey; 62% have formal diversity programs to encourage women and minorities, versus 37% for the rest; 76% offer stress reduction programs, versus 37% for the remainder.
Employee ownership is also important: An average of 24% of the employees in the 50 Best own stock in their own company, versus 3% in the rest. At Royal Bank, the only big bank to make the list this year, 85% own shares. Dutton says those results are no surprise. To her, it's similar to "the difference between owning a car and renting one." The allure of stock options has faded with the recent turmoil in the markets. But whatever happens to stock prices, Dutton says employees who own shares are more focused on what makes their company succeed.
Some companies are conspicuously absent from the list. Last year's winner, Nortel Networks, plunged into an industry-wide downturn just as survey results were published in our February, 2001, issue, and soon announced staff cuts of more than 20,000. The company chose not to participate this year. Canadian Tire, the winner in 2000, also chose not to participate. Instead, it says it has focused its efforts on a sweeping transition under CEO Wayne Sales, who took over in 2000.
In total, just 16 of last year's 35 Best Companies made it onto this year's list. Dutton says a recession will test companies even more. The 50 Best will be in a better position than most to make the list again next year. But they, too, will have to work hard.
ARE GOOD EMPLOYERS GOOD INVESTMENTS?
Over time, yes, although there can be bumps along the way. We compared the 34 Best Companies whose shares trade publicly against the TSE 300 Total Return Index. Four of them have been public for less than five years, and two have been public for less than three years.
WOMEN OF THE 50 BEST
FIVE OF THE 50 BEST COMPANIES HAVE FEMALE TOP EXECUTIVES
KAREN FLAVELLE President, Purdy's Chocolates
DR. JULIA LEVY CEO and co-founder of QLT Inc., who recently announced plans to step down
BERNADETTE CONNAUGHTON CEO, Bristol-Myers Squibb Canada Inc.
JANICE TOMLINSON President and CEO of Chubb Insurance Co. of Canada
MARGE DE GROOT President, Canada West, Flight Center Ltd.
WHERE THE 50 BEST ARE
CANADIAN HEAD OFFICES
Ontario 56% Alberta 14% British Columbia 14% Quebec 12% Manitoba 2% Nova Scotia 2%
HOW WE PICKED THE 50 BEST
We began in April, 2001, by sending invitations to more than 1,000 companies across Canada with at least 300 employees. One reason for that criterion is that the evaluation process is so intensive. Our partner, for the third year in a row, is Hewitt Associates, North America's largest human-resources consulting firm. Hewitt has more than 13,000 associates in 37 countries, including 400 associates in five offices in Canada. The survey consisted of three parts. First, each participating company distributed a detailed questionnaire to 250 randomly selected employees. That counted for 70% of the mark. Companies also completed a comprehensive human-resources practices survey, the People Practices Inventory. It counted for 25% of the final score. As well, each CEO completed a questionnaire about his or her philosophy about the value of people. It counted for 5%. Hewitt received completed submissions from 161 companies, up from 86 last year and 62 in 2000.
If you want to participate next year, send an inquiry to
RANK: 1 LAST YEAR: - COMPANY (Headquarters): Flight Centre Ltd., Toronto REVENUES (millions)(1): $107 EMPLOYEES in Canada(2): 420 VOLUNTARY TURNOVER(3): 6.1% SOME REASONS THEY STAND OUT: Monthly parties. "Incento" dollars give staff travel discounts. ***** RANK: 2 LAST YEAR: - COMPANY (Headquarters): Intuit Canada Ltd, Edmonton REVENUES (millions)(1): $53 EMPLOYEES in Canada(2): 344 VOLUNTARY TURNOVER(3): 2.2% SOME REASONS THEY STAND OUT: Matches 75% of RRSP contributions ($3,500 yearly max) ***** RANK: 3 LAST YEAR: 3 COMPANY (Headquarters): Hewlett-Packard (Canada) Ltd., Miss., Ont. REVENUES (millions)(1): $1,800 EMPLOYEES in Canada(2): 1,400 VOLUNTARY TURNOVER(3): 4.4% SOME REASONS THEY STAND OUT: Owns a family resort, RRSP matching increases with service ***** RANK: 4 LAST YEAR: 5 COMPANY (Headquarters): Surrey Metro Savings Credit Union, Surrey B.C. REVENUES (millions)(1): $66 EMPLOYEES in Canada(2): 650 VOLUNTARY TURNOVER(3): 16.1% SOME REASONS THEY STAND OUT: Buy one share, get on free from stock option plan ***** RANK: 5 LAST YEAR: 4 COMPANY (Headquarters): Eli Lilly Canada, Inc., Toronto REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 691 VOLUNTARY TURNOVER(3): 6.8% SOME REASONS THEY STAND OUT: Internal satellite television links employees worldwide ***** RANK: 6 LAST YEAR: - COMPANY (Headquarters): BC Biomedical Laboratories Ltd., Surrey B.C. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 526 VOLUNTARY TURNOVER(3): 2.3% SOME REASONS THEY STAND OUT: Family events galore: barbecues, gold, tobagganing and more ***** RANK: 7 LAST YEAR: - COMPANY (Headquarters): Microsoft Canada Co., Miss, Ont. REVENUES (millions)(1): $710 EMPLOYEES in Canada(2): 500 VOLUNTARY TURNOVER(3): 8.9% SOME REASONS THEY STAND OUT: Almost all employees get laptops, free on-line connection ***** RANK: 8 LAST YEAR: - COMPANY (Headquarters): McDonald's Restaurants of Canada Ltd., Toronto REVENUES (millions)(1): $2,150 EMPLOYEES in Canada(2): 4,300 VOLUNTARY TURNOVER(3): 5.8% SOME REASONS THEY STAND OUT: Two-month paid sabbatical after 10 years of service ***** RANK: 9 LAST YEAR: - COMPANY (Headquarters): Wal-Mart Canada Corp., Miss., Ont. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 50,000 VOLUNTARY TURNOVER(3): 20.1% SOME REASONS THEY STAND OUT: Full- and part-timers share in chain and store profits ***** RANK: 10 LAST YEAR: - COMPANY (Headquarters): Telus Corp, Burnaby, B.C. REVENUES (millions)(1): $6,084 EMPLOYEES in Canada(2): 26,300 VOLUNTARY TURNOVER(3): 1.8% SOME REASONS THEY STAND OUT: 100 stock options a year per employee from 2001 to 2003 ***** RANK: 11 LAST YEAR: 9 COMPANY (Headquarters): The Maritime Life Assurance Co., Halifax REVENUES (millions)(1): $1,795 EMPLOYEES in Canada(2): 2,032 VOLUNTARY TURNOVER(3): 6.8% SOME REASONS THEY STAND OUT: Yearly bonus for all staff based on customer satisfaction ***** RANK: 12 LAST YEAR: 12 COMPANY (Headquarters): Delta Hotels Ltd., Toronto REVENUES (millions)(1): 448 EMPLOYEES in Canada(2): 8,000 VOLUNTARY TURNOVER(3): 19.2% SOME REASONS THEY STAND OUT: Staff discounts on rooms, half-price meals ***** RANK: 13 LAST YEAR: - COMPANY (Headquarters): Aventis Pharma Inc., Laval, Que. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 800 VOLUNTARY TURNOVER(3): 5.0% SOME REASONS THEY STAND OUT: Stock options for all and 15% discount on shares ***** RANK: 14 LAST YEAR: 18 COMPANY (Headquarters): JTI-Macdonald Corp., Toronto REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 544 VOLUNTARY TURNOVER(3): 2.2% SOME REASONS THEY STAND OUT: Three four-day weekends in the summer ***** RANK: 15 LAST YEAR: - COMPANY (Headquarters): Starwood Hotels and Resorts (Canada), Toronto REVENUES (millions)(1): $395 EMPLOYEES in Canada(2): 3,200 VOLUNTARY TURNOVER(3): 21.4% SOME REASONS THEY STAND OUT: Co-op program for hundreds of students. 75% hired annually ***** RANK: 16 LAST YEAR: - COMPANY (Headquarters): Novartis Pharma Canada Inc., Dorval, Que. REVENUES (millions)(1): $379 EMPLOYEES in Canada(2): 605 VOLUNTARY TURNOVER(3): 5.5% SOME REASONS THEY STAND OUT: Preferred access to a private medical clinic ***** RANK: 17 LAST YEAR: - COMPANY (Headquarters): Hudson's Bay Co., Toronto, Ont. REVENUES (millions)(1): $7,519 EMPLOYEES in Canada(2): 22,253 VOLUNTARY TURNOVER(3): 10.0% SOME REASONS THEY STAND OUT: New on-line learning program offers over 40 courses ***** RANK: 18 LAST YEAR: - COMPANY (Headquarters): Compaq Canada Corp., Richmond Hill, Ont. REVENUES (millions)(1): $1,600 EMPLOYEES in Canada(2): 1,120 VOLUNTARY TURNOVER(3): 7.4% SOME REASONS THEY STAND OUT: Provides $25-a-month subsidy for home internet connection ***** RANK: 19 LAST YEAR: - COMPANY (Headquarters): Rothmans Benson & Hedges Inc., Toronto REVENUES (millions)(1): $535 EMPLOYEES in Canada(2): 790 VOLUNTARY TURNOVER(3): 1.4% SOME REASONS THEY STAND OUT: On-site massage therapist. Outings to tobbaco farms. ***** RANK: 20 LAST YEAR: - COMPANY (Headquarters): Golder Associates Ltd., Vancouver REVENUES (millions)(1): $126 EMPLOYEES in Canada(2): 1,140 VOLUNTARY TURNOVER(3): 6.0% SOME REASONS THEY STAND OUT: Environmental consulting firm is 100% employee-owned ***** RANK: 21 LAST YEAR: - COMPANY (Headquarters): R.C. Purdy's Chocolates Ltd., Vancouver REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 500 VOLUNTARY TURNOVER(3): NA SOME REASONS THEY STAND OUT: Family-run since 1907. Everyone serves customers ***** RANK: 22 LAST YEAR: - COMPANY (Headquarters): Royal Bank of Canada, Toronto REVENUES (millions)(1): $10,107(4) EMPLOYEES in Canada(2): 36,980 VOLUNTARY TURNOVER(3): 6.4% SOME REASONS THEY STAND OUT: Encourages staff mobility. 25% per year assume new roles ***** RANK: 23 LAST YEAR: 13 COMPANY (Headquarters): Chubb Insurance Co. of Canada, Toronto REVENUES (millions)(1): $329 EMPLOYEES in Canada(2): 443 VOLUNTARY TURNOVER(3): 4.8% SOME REASONS THEY STAND OUT: 40 hours of paid learning per year per employee ***** RANK: 24 LAST YEAR: 19 COMPANY (Headquarters): S.C. Johnson & Son, Ltd., Brantford, Ont. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 425 VOLUNTARY TURNOVER(3): 3.0% SOME REASONS THEY STAND OUT: On-site massage, gym and lactation room for mothers ***** RANK: 25 LAST YEAR: - COMPANY (Headquarters): Mercedes-Benz Canada Inc., Toronto REVENUES (millions)(1): $982 EMPLOYEES in Canada(2): 646 VOLUNTARY TURNOVER(3): 3.4% SOME REASONS THEY STAND OUT: Staff can test-drive five cars over five weeks ***** RANK: 26 LAST YEAR: - COMPANY (Headquarters): BP Canada Energy Co., Calgary REVENUES (millions)(1): $13,200 EMPLOYEES in Canada(2): 1,275 VOLUNTARY TURNOVER(3): 3.7% SOME REASONS THEY STAND OUT: Very pro-environment. Staff get free shade-grown coffee ***** RANK: 27 LAST YEAR: 15 COMPANY (Headquarters): Merck Frosst Canada Ltd., Kirkland Que. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 1,687 VOLUNTARY TURNOVER(3): 4.3% SOME REASONS THEY STAND OUT: Daycare centre near office. Spring-break and summer day camp ***** RANK: 28 LAST YEAR: - COMPANY (Headquarters): Nexen Inc., Calgary REVENUES (millions)(1): $2,764 EMPLOYEES in Canada(2): 1,412 VOLUNTARY TURNOVER(3): 3.8% SOME REASONS THEY STAND OUT: Choice of flex-schedule arrangements for work/life balance ***** RANK: 29 LAST YEAR: - COMPANY (Headquarters): EllisDon Corp., London, Ont. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 930 VOLUNTARY TURNOVER(3): 9.1% SOME REASONS THEY STAND OUT: Staff who meet quota share 25% of operating earnings ***** RANK: 30 LAST YEAR: - COMPANY (Headquarters): Sierra Systems Group Inc., Vancouver REVENUES (millions)(1): $78 EMPLOYEES in Canada(2): 667 VOLUNTARY TURNOVER(3): 19.2% SOME REASONS THEY STAND OUT: All employees share in profits monthly ***** RANK: 31 LAST YEAR: 25 COMPANY (Headquarters): Federal Express Canada Ltd., Miss., Ont. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 4,682 VOLUNTARY TURNOVER(3): 9.7% SOME REASONS THEY STAND OUT: "Out-of-box" initiatives instead of layoffs last fall ***** RANK: 32 LAST YEAR: 20 COMPANY (Headquarters): Amex Canada Inc., Markham, Ont. REVENUES (millions)(1): $641 EMPLOYEES in Canada(2): 3,528 VOLUNTARY TURNOVER(3): 9.2% SOME REASONS THEY STAND OUT: Parties nationwide when profits cracked $100 million in 2000 ***** RANK: 33 LAST YEAR: - COMPANY (Headquarters): Fluor Canada Ltd., Calgary REVENUES (millions)(1): $1,558 EMPLOYEES in Canada(2): 1,160 VOLUNTARY TURNOVER(3): 7.6% SOME REASONS THEY STAND OUT: Provides up to $7,500 a year for external training ***** RANK: 34 LAST YEAR: 11 COMPANY (Headquarters): Procter & Gamble Inc., Toronto REVENUES (millions)(1): $1,900 EMPLOYEES in Canada(2): 2,716 VOLUNTARY TURNOVER(3): NA SOME REASONS THEY STAND OUT: Executives work in cubicles to encourage communication ***** RANK: 35 LAST YEAR: - COMPANY (Headquarters): QLT Inc., Vancouver REVENUES (millions)(1): $49 EMPLOYEES in Canada(2): 336 VOLUNTARY TURNOVER(3): 6.3% SOME REASONS THEY STAND OUT: On-site shiatsu massage and personal trainer ***** RANK: 36 LAST YEAR: - COMPANY (Headquarters): GlaxoSmithKline Inc., Miss., Ont. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 1,794 VOLUNTARY TURNOVER(3): 7.8% SOME REASONS THEY STAND OUT: Year-round self-scheduling and compressed work weeks ***** RANK: 37 LAST YEAR: - COMPANY (Headquarters): PCL Constructors Inc., Edmonton REVENUES (millions)(1): $1,797 EMPLOYEES in Canada(2): 1,055 VOLUNTARY TURNOVER(3): 7.9% SOME REASONS THEY STAND OUT: 100%-owned by current employees ***** RANK: 38 LAST YEAR: - COMPANY (Headquarters): AstraZeneca Canada Inc., Miss., Ont. REVENUES (millions)(1): $708 EMPLOYEES in Canada(2): 1,427 VOLUNTARY TURNOVER(3): 5.1% SOME REASONS THEY STAND OUT: Nine company holidays during the year, four at year-end ***** RANK: 39 LAST YEAR: 28 COMPANY (Headquarters): General Motors of Canada Ltd., Oshawa, Ont. REVENUES (millions)(1): $42,000 EMPLOYEES in Canada(2): 25,884 VOLUNTARY TURNOVER(3): 0.2% SOME REASONS THEY STAND OUT: New flex-pension program. Extended parental leaves ***** RANK: 40 LAST YEAR: 23 COMPANY (Headquarters): PanCanadian Energy Corp., Calgary REVENUES (millions)(1): $3,629(4) EMPLOYEES in Canada(2): 1,670 VOLUNTARY TURNOVER(3): 4.6% SOME REASONS THEY STAND OUT: Talent Quest program pays $2,500 per referral hired ***** RANK: 41 LAST YEAR: - COMPANY (Headquarters): Intria Items Inc., Miss., Ont. REVENUES (millions)(1): $312 EMPLOYEES in Canada(2): 5,431 VOLUNTARY TURNOVER(3): 4.1% SOME REASONS THEY STAND OUT: Financial transactions processor offers three types of staff awards ***** RANK: 42 LAST YEAR: - COMPANY (Headquarters): Ceridian Canada Ltd., Winnipeg REVENUES (millions)(1): $149 EMPLOYEES in Canada(2): 1,350 VOLUNTARY TURNOVER(3): 5.0% SOME REASONS THEY STAND OUT: 15% discount on company stock. Loans to buy a computer ***** RANK: 43 LAST YEAR: - COMPANY (Headquarters): Kellogg Canada Inc., Toronto REVENUES (millions)(1): $600 EMPLOYEES in Canada(2): 900 VOLUNTARY TURNOVER(3): 1.2% SOME REASONS THEY STAND OUT: On-site fitness centre. Many family events ***** RANK: 44 LAST YEAR: 14 COMPANY (Headquarters): The Cumis Group Ltd., Burlington, Ont. REVENUES (millions)(1): $214 EMPLOYEES in Canada(2): 507 VOLUNTARY TURNOVER(3): 8.3% SOME REASONS THEY STAND OUT: Company home mortgages at 1.5% below market rates ***** RANK: 45 LAST YEAR: - COMPANY (Headquarters): Marriott Hotels of Canada, Toronto REVENUES (millions)(1): $331 EMPLOYEES in Canada(2): 1,335 VOLUNTARY TURNOVER(3): 25.8% SOME REASONS THEY STAND OUT: Discounts on rooms, food. Annual associate Appreciation Week ***** RANK: 46 LAST YEAR: - COMPANY (Headquarters): Chevron Canada Resources, Calgary REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 545 VOLUNTARY TURNOVER(3): 4.4% SOME REASONS THEY STAND OUT: Compressed work week can mean every other Friday off ***** RANK: 47 LAST YEAR: - COMPANY (Headquarters): Ericsson Canada Inc., Mount-Royal, Que. REVENUES (millions)(1): $694 EMPLOYEES in Canada(2): 1,932 VOLUNTARY TURNOVER(3): 12.6% SOME REASONS THEY STAND OUT: On-site daycare, gym and yoga classes ***** RANK: 48 LAST YEAR: - COMPANY (Headquarters): IMS Health, Canada, Point Claire, Que. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 330 VOLUNTARY TURNOVER(3): 7.3% SOME REASONS THEY STAND OUT: Stock options and performance bonuses for all employees ***** RANK: 49 LAST YEAR: - COMPANY (Headquarters): Bristol-Myers Squibb Canada Inc., St. Laurent, Que. REVENUES (millions)(1): NA EMPLOYEES in Canada(2): 1,017 VOLUNTARY TURNOVER(3): 8.2% SOME REASONS THEY STAND OUT: In-house gym and fitness classes, including Thai boxing ***** RANK: 50 LAST YEAR: 31 COMPANY (Headquarters): Deloitte & Touche LLP, Toronto REVENUES (millions)(1): $876 EMPLOYEES in Canada(2): 5,613 VOLUNTARY TURNOVER(3): 15.6% SOME REASONS THEY STAND OUT: Pays employees $1,500 to $6,000 for referrals hired -** (1)Revenues are audited figures for 2000 or latest comparable period. (2)Full- and part-time employees (3)Annualized rate as of July, 2001, not including retirement (4)From Canadian opertions only