VR's survey on the Company of the Year 2024 reached all VR union members. Additionally, numerous companies were invited to send the survey to all employees, not just VR members. In total, 158 companies accepted this offer. Gallup was responsible for conducting VR's survey on Company of the Year and processing the results.

The survey's population consisted of nearly 43,000 individuals, with the final population being just under 38,000. Responses were received from nearly 15,000 individuals working at approximately 700 companies, resulting in a response rate of about 39%. This participation rate is similar to the previous year. It is important to note that these responses come from the overall group or population, as all VR union members meeting the aforementioned conditions had the opportunity to participate.

The Idea

In VR's survey on Company of the Year, the staff's attitudes towards key factors in the workplace environment are assessed. The survey provides a platform for union members to express their opinions and inform management about what is being done well and what could be improved. The results offer managers a wealth of information and a practical guide on whether improvements are needed and where. They not only show the company's status in the eyes of the employees but also how it stands compared to other companies in the labor market.

Activating Human Resources

The philosophy behind Company of the Year is that the internal work environment of companies has a tremendous impact on their performance, not less than external operating conditions. Companies that, for various reasons, poorly or not at all activate their human resources cannot take advantage of favorable external conditions or respond to negative operating conditions or external shocks.

In this context, the internal work environment primarily refers to the prevailing attitudes among employees. How do they view their work, their working conditions, colleagues, managers, and the company's policy and management? What is the attitude of managers towards their subordinates? The more negative these attitudes are, the poorer the company's internal work environment.

This can be measured in many ways. In VR's survey, the results are based on nine key factors: management, morale, wages, working conditions, work flexibility, job autonomy, company image, satisfaction and pride, and equity, which was introduced in 2016. These factors reflect the trust prevailing in the company's internal communications, how proud or pleased the staff generally is with their work and the company they work for, the respect managers have for their staff, and the atmosphere at the workplace.

Satisfied Staff = Increased Quality

A company considered an attractive workplace can choose from the most qualified staff and benefits from high employee loyalty. Production and service quality increases, as the synergy is that all employees strive to achieve success. A good work environment reduces stress and strain and increases overall job satisfaction, which in turn reduces sick days. Employees show initiative in their work, which also promotes innovation in the company's operations and successful development. As a result, the company becomes more flexible in responding to changes in its operating environment or competitive conditions. The company's image becomes strong, both internally towards the staff and externally, and the company benefits from positive word-of-mouth.

The Survey Identifies Areas for Improvement

Company of the Year enables managers to approach their internal work environment in a focused and effective manner. Firstly, the results are a reliable tool for measuring the company's performance as a workplace. They indicate whether and what problems exist and simultaneously what opportunities it has. Secondly, Company of the Year provides an important comparison over the years. Thirdly, the definitions of Company of the Year include powerful tools that managers can use in collaboration with staff to make the workplace desirable.

A Powerful Tool for VR

The survey results give VR a clear and comprehensive picture of the members' attitudes towards their workplaces. This information is useful for the union in its wage negotiations, allowing VR to assess what emphasis should be placed on demands in collective agreements and whether the attitudes of managers and/or public authorities need to change. Thus, the survey supports the union's operations and services.

For a company to be considered eligible for selection for Company of the Year 2024, a certain minimum number of respondents was required. A 35% response rate from the company was mandated. Additionally, at least 7 respondents were required for companies with fewer than 50 employees. For companies with 50 to 99 employees, at least 10 responses were needed; for companies with 100 to 499 employees, 20 responses; and for companies with 500 or more employees, 50 responses. A total of 209 companies met these criteria, and the selection of Company of the Year 2024 is based on responses from over nine thousand employees of these companies.

Companies of the Year 2024 were selected by asking employees to evaluate the internal work environment of their workplaces. The measurement covered nine different aspects of company environments, providing a comprehensive picture of their internal work environments. Such extensive measurement helps managers better understand the status of their company as they receive results on each aspect of the work environment. This makes it easier to identify areas needing improvement and those that are well-managed.

Factor analysis was used to identify underlying factors in the data. This method reveals the concepts measured by the survey. The factor analysis primarily identified nine factors or constructs.

The nine factors identified were: attitudes towards management, compensation, working conditions, work flexibility, opportunities for employees to make independent decisions at work, company image, job satisfaction and pride, morale, and equity.

The factors are composed of questions that fall under each factor. Each question can be answered on a five-point scale, with one end indicating high satisfaction with the subject of the question and the other end indicating high dissatisfaction. The score for each factor represents the average satisfaction of respondents with the questions falling under the respective factor. Questions are arranged in the table by their loading on the factor, with the highest loading question at the top.

Method

The selection of the Company of the Year 2024 is based on an overall score composed of these nine factors. All factors are rated on a scale from 1 to 5, where 5 indicates very high employee satisfaction with the respective aspect of the company's work environment, and 1 indicates very high dissatisfaction. A score of 3 on a factor indicates that employees are neither satisfied nor dissatisfied with the respective aspect of the company's work environment.

In the overall score composition, the weights of the nine factors differ (see table). The same scale is used for the overall score as for the factors, with the lowest value being 1, indicating the most dissatisfaction, and the highest value being 5, indicating the most satisfaction.

Weights of Factors in the Overall Score

During factor analysis, the principal axis method with oblique rotation was used, and in all cases, the correlation between factors was higher than 0.3. Together, the factors account for 63% of the total variance of the variables (see variables/questions in the table at the bottom of the page). The weight of individual factors in the overall score is based on the proportion of variance each factor explains of the variance of all questions.

The weight of individual factors in the overall score is based on the proportion of variance each factor explains of the variance of all questions (see factor weights in the table). A factor loading of 0.3 or higher was used for the relevant factors, meaning that each item explains at least 9% of the factor's variance. Item analysis supported that these items were appropriately assigned to the relevant factors. Overall, items had good factor loadings with their respective factors. Item analysis revealed that the nine factors have good internal consistency (see table).

Reliability of Scales Forming the Overall Measurement of Company of the Year

Average Scores of Factors