Study: 'Best Places' Designation Good For Business

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South Bend-based Gibson was recognized by the Indiana Chamber this year as one of the Best Places to Work in the state. South Bend-based Gibson was recognized by the Indiana Chamber this year as one of the Best Places to Work in the state.

A new, nationally-published study involving a Purdue University Krannert School of Management researcher suggests "Best Places to Work" certifications have a positive effect on the quality of talent at participating businesses. The findings from Associate Professor Brian Dineen, who co-authored the study with Rutgers University's David Allen, show businesses that receive the designation have lower turnover rates and can get a bump in the quality of applicants for open positions. Dineen says the study weighs several factors, including the effect of repeated BPTW certifications.

Best Companies Group is the same organization the Indiana Chamber of Commerce partners with for its annual program.

Dineen says the study shows companies see a "celebrity effect" after being recognized with the designation. Smaller companies in particular, Dineen believes, can see positive results from the designation "putting them on the map." He says some applicants that may have not heard of the companies end up applying.

Dineen says, "employees may doubt the credibility of internal branding efforts, but third-party endorsements may be more credible in persuading them that the organization is a great place to work, relative to other non-endorsed organizations. Also, employees who work for an award-winning company may identify more strongly with such a company and be reluctant to consider moving. We find these type of external accolades and certifications associated with lower turnover rates, even after controlling for prior turnover rates."

The study, which was funded with a grant from the Society for Human Resource Management used data from more than 600 "Best Places to Work" participant surveys between 2011-2013 provided by Best Companies Group.

You can connect to more about the study by clicking here.

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