How to Become a Top Workplace: Unlocking a Winning Culture with Data

The concept of a “top workplace” often conjures images of extravagant perks and shiny offices. But what truly defines an exceptional workplace culture? According to Dan Kessler, owner of Top Workplaces, and President of Energage, it’s far more profound. It’s about building a consistently engaging environment, driven by the authentic voice of your employees, and leveraging that insight for tangible business success.

In a recent conversation on the “Culture in Action” podcast, Dan shared Energage’s proven framework for understanding, building and branding winning workplaces. For any leader aiming to foster employee engagement and create a truly standout organisation, this is a masterclass in putting people-first strategies into action.

The Energage Pyramid: Measuring What Matters

Below you can see the Energage Pyramid. At its peak sits employee engagement – the ultimate outcome of a thriving culture. But how do you reach that summit? Energage breaks it down into actionable drivers, forming the base and middle layers the pyramid.

The Foundation – Are They Valued Fairly?
The very base of the pyramid focuses on the fundamental needs of each person. Ask yourself:

• Are employees paid fairly for their work?
• Do they receive adequate training and development?
• Do they have the work-life balance and flexibility needed to manage their personal lives?

The Second Layer – Manager and Employee Relationship

This crucial layer of becoming a top workplace is where much of the day-to-day employee experience is shaped. It’s about the direct connection between a manager and their team members. Key questions include:

• Do employees feel respected and supported by their manager?
• Can they share their true thoughts and concerns openly?
• Does their manager genuinely care about them as a human being and their career growth?

This is a vital area where tools like Mo and Energage can collaborate, empowering managers to build stronger, more supportive relationships.

The Third Layer – Organisational Alignment and Execution

These elements often fall under the purview of senior leadership and speak to the broader company environment:

• Direction and Values: Is there a clear organisational direction that everyone understands and aligns with? Is there a strong sense of shared values and meaning in the work?
• Getting Work Done: How effectively does communication flow throughout the organisation (upwards and downwards)? Is there minimal friction in cross departmental collaboration?

The Peak – Employee Engagement

This is measured by three key indicators:

• Motivation: Are employees motivated to give their best every day?
• Loyalty: Are they committed to the organisation and not actively looking for other jobs?
• Referral: Are they willing to recommend their workplace to friends or colleagues (akin to an Employee Net Promoter Score)?

Your Pathway to Improvement: Benchmarking Against the Best

So, you’ve understood the pyramid. Now, how do you measure up? Energage’s extensive benchmarking data provides crucial context. They don’t just offer a generic comparison. They compare you to organisations of similar size and industry, offering a truly relevant benchmark.

Crucially, Energage’s “Top Workplaces” designation is an elite benchmark. It means you’re not just comparing yourself to anyone, but to the best of the best. This rigorous, data-driven approach ensures that recognition is earned through authentic employee feedback, not bought or won through popularity contests.

“The only criteria that goes into determining whether or not a company is a top workplace is the quantitative data that we capture and measure.”

First Steps for a New People Leader: The Power of Openness

For a newly appointed Chief People Officer, the goal of becoming a “top workplace” might feel daunting. Dan’s advice starts with a fundamental question: Is your leadership team truly open to feedback?

Many leaders might believe they have a “pretty good culture”, often pointing to company events or philanthropic activities. While these are positive, they don’t tell the full story. The reality is, employee sentiment exists whether you actively seek it or not. People are talking about their experiences on platforms like Glassdoor and Indeed.

Embracing feedback, even if it’s uncomfortable, gives you control over your organisation’s reputation and allows you to be intentional about culture shaping. This openness is the essential first step.

Unmasking Myths and Blind Spots

Once leadership is committed to feedback, what common misconceptions do organisations encounter?

• Myth 1: Feedback demands massive, expensive change
  Many leaders fear that employee feedback will lead to costly overhauls. Dan explains that this is a “real miss”. The best companies build a “muscle” of asking for feedback and responding with simple, often low or no cost actions. These actions frequently align with existing leadership initiatives and merely require better communication to the team.
• Myth 2: Culture is HR’s or the CEO’s responsibility
  This is another crucial blind spot. Culture cannot be solely owned by HR or the executive team. “The culture needs to be owned by every single employee.” Culture building happens in the “moments that matter”: in one to one conversations, team meetings, and problem solving discussions. Every employee plays a part in shaping the reputation and environment they work in. Leaders must foster this shared ownership.

Equipping Managers: The High-Leverage Opportunity

Managers are the connective tissue between senior leadership vision and day-to-day employee experience. They are exceptionally busy and often juggling multiple priorities. Yet, they are arguably the most impactful force in shaping employee experience.

The key to building a top workplace is to empower them. Provide managers with clear, bite sized insights into their team’s feedback and equip them with high leverage, actionable steps to improve engagement. This is where the synergy between Energage’s data and Mo’s platform becomes incredibly powerful, delivering targeted actions directly into the palm of a manager’s hand.

Success Stories: From Stone Manufacturers to Shareholder Value

Dan shared a compelling example of a stone manufacturer with a few hundred employees. Their Energage data revealed concrete areas for improvement:

• One team had grown too large, requiring a reorganisation to improve efficiency and connection
• A clear desire for more leadership training opportunities was identified
• Specific, tactical feedback about benefits led to improved communication, not necessarily additional investment

These are simple, yet impactful, examples of how data translates into actionable steps.

Beyond individual company transformations, Energage’s data highlights the profound business value of a strong culture. Their research, in collaboration with Irrational Capital, demonstrates that employee engagement data is a driver of future equity value. JP Morgan has even published white papers on how this “human capital factor” can lead to massive shareholder returns. For any sceptic, this clearly links culture to profitability.

Two Pieces of Advice

To any leader aspiring to build a top workplace, Dan offers two invaluable insights:

1. Have Grace with Yourself: “We are all human beings with these things called brains and hearts and emotions. And so know that you’re not gonna get it right every single day and every single interaction.” It’s about progress, not perfection.
   
2. Embrace Intentionality and Openness: Bring this attitude to every interaction – every email, meeting, and one to one conversation. These are the “moments that matter” that build and sustain a winning culture.

Building a top workplace isn’t about grand gestures; it’s about consistent, authentic effort informed by genuine employee voice. By committing to listening, empowering managers, and acting on data, any organisation can transform its culture and unlock significant business value.

What small, intentional step can you take today to listen more deeply to your employees?