For many Americans, work looks and feels very different these days.
Since the COVID-19 pandemic proved that all work doesn’t need to be done at the office, employees are openly questioning the “why” and “how” driving workplace norms, says Lynda Gratton, a professor of management practice at London Business School.
“We never really designed work. We just had a norm that everybody was in the office, and we sort of muddled through, and it was fine,” Gratton says. “But now we [are] actually intentionally designing” how we work.
The best companies understand this dynamic and are actively shifting their strategies in a variety of ways—from physically changing office layouts to offering flexible scheduling options to ensuring greater equity in who gets to take advantage of opportunities for advancement. “There’s a whole set of reimaginings going on right now,” Gratton says.
The changing workplace
For some employees, their workstation is a laptop at the kitchen table. But other workers want and need to be at their employer’s office, either because their job requires it or they find it to be more productive.
That presents challenges for companies that want to offer flexibility in order to stay competitive in their recruitment and retention of workers, while also maximizing the returns on their real estate expenses.
Companies like American Express (No. 3 on the 2023 Fortune 100 Best Companies to Work For list)—which in 2022 introduced Amex Flex, providing formal hybrid, remote, and in-person work models—report employees are using offices differently than before the pandemic. Instead of requiring all employees work in person, Amex’s approach gives workers the option to come to the office when there’s true purpose, whether that’s to collaborate with coworkers, meet new colleagues, or build relationships across teams. This flexibility helps businesses too: Research has found that remote work can boost productivity.
“We have to be much more intentional,” Gratton says. “If you want people to be in the office, they have to do things that are really about cooperation—where being in the office is worthwhile.”
Many of the best companies are rethinking the physical office space as well. Marriott (No. 10) opened its new headquarters in Bethesda, Md., last summer with about 25% fewer individual workstations in an effort to create more collaborative spaces. The new office design is intended to feel more like a hotel, with designated areas—including a plaza, a café, and parts of the lobby—open to the public.
Salesforce (No. 8) kept its neurodivergent workers top of mind when designing floors of its new Salesforce Tower Chicago. There are a variety of workspaces, including focus pods and quieter places, for employees who face challenges working in more crowded environments. Across the board, the company is increasing collaboration spaces in its office design and experimenting with how floor plans transition from quieter to more active spaces.
The changing workforce
It’s not just the office that is changing, the workforce itself is shifting. The best companies are moving the needle on creating a diverse and equitable workplace. They know this not only helps with recruiting and retention, but it also increases productivity and ensures organizations stay competitive.
Cisco (No. 1) continues to work toward improving workforce diversity. It increased the number of employees self-identifying as African American or Black overall from 5.9% in fiscal year 2020 to 10% in FY22.
Since 2000, the company has achieved a 60% increase in African American and Black employees in entry-level through manager roles, and a 94% increase in representation at the director level. The number of African American and Black employees within the vice president and C-suite ranks grew by 160% during the last fiscal year.
Diversity, however, goes beyond race and ethnicity. Since the onset of the pandemic, the best companies aren’t necessarily looking for candidates who meet a certain set of requirements, such as attending specific schools or earning specific degrees. Instead, there’s more of a focus on the skills workers bring to the table.
That’s true of Accenture (No. 5), which has been working to reduce its degree requirements. Only 26% of Accenture’s software QA engineer postings, for example, specify a degree requirement, according to 2022 research by The Burning Glass Institute and Harvard Business School.
A lot of companies are now recognizing that denying someone a job because they don’t have a degree is hurting social mobility, Gratton says. Focusing on a skills-based hiring approach broadens the talent pool immensely.
The changing world
The near-constant change of the past three years has been difficult for pretty much everyone—and companies are working to address the social issues impacting their employees. Marriott’s new headquarters offers a childcare center in an effort to help working parents. Nvidia (No. 6) started offering access to the digital health care app Peppy, connecting employees and their domestic partners and spouses with personalized support for menopause, as well as endometriosis and PCOS. And Hilton (No. 2) now offers free counseling to its employees and access to an internal hub with resources meant to normalize mental health conversations.
Yet this momentum is at a crossroads. Many organizations have announced layoffs and hiring freezes amid the uncertain economic outlook: In the tech sector alone, more than 150,000 workers have lost their jobs since the beginning of 2023. Not only do layoffs jeopardize employee programs and workplace perks, but research shows there’s a significant job satisfaction and performance decline seen among remaining workers.
The best companies are traditionally known for their strong levels of employee trust. This year’s list was created based on feedback from over half a million employees in August 2022—well before layoffs started to hit and potentially threaten to erode the executive-employee relationship.
The best companies have survived economic downturns before. Time will tell how their company cultures weather this storm.
96
of the 100 Best Companies provide remote work options
17
companies cover 100% of health care premiums on at least one of their plans
22
companies offer an unlimited number of free mental health sessions (most of them virtual) to employees
47%
of new hires live more than two hours away from a physical Atlassian office
$135 million
in scholarships Wegmans has given to more than 44,000 employees since 1984
10 new companies on the list
Work is always changing, and so is the selection of businesses that make Fortune’s annual Best Companies to Work For list. This year, there were 10 new companies joining the ranks thanks to their commitment to their employees.
Visa, No. 49
MetLife, No. 51
The Breakers Palm Beach, No. 65
Qualtrics, No. 68
Ally Financial, No. 71
Discover Financial Services, No. 81
Vertex Pharmaceuticals, No. 84
Trek Bicycle, No. 94
Teleperformance, No. 97
Tri Pointe Homes, No. 99
A version of this article appears in the April/May 2023 issue of Fortune with the headline, "The ever-changing working world."
