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Proof That a Great Company Culture Adds Stockholder Value

Proof That a Great Company Culture Adds Stockholder Value

We don't think it's a coincidence that the same year that Hilton is named the #1 Best Company to Work For, it is also named the World's Most Valuable Hotel Brand, according to the Brand Finance Hotels 50 ranking. At Great Place to Work we know that a great organizational culture drives positive business results, so it's no surprise to us that a company with the world's best workplace culture has also created the most valuable brand in the hospitality industry.

Savio D’Souza, valuation director at Brand Finance, explains,“Hilton’s strategic approach to brand growth has allowed it to extend its lead as the world’s most valuable hotel brand. At the same time, endorsement from the flagship brand has rendered benefits across the portfolio as Homewood Suites, DoubleTree, and Hampton have seen their brand values soar.”

Hilton Worldwide Holdings achieved overall brand value growth of 41 percent and the combined value of all Hilton brands amounts to $14.7 billion – nearly $2 billion more than the number two hotel brand. How does this brand superstar create a winning workplace culture for its 380,000 employees? As we shared in Hilton's Great Place to Work profile, a key secret of their success is their outstanding commitment over the past decade to treat team members—in every role, from the C-Suite to mid-level managers to frontline cooks, concierges and housekeepers—as well as they treat the guests who stay at their properties.

Knowing that their people are part of every guest interaction and experience that guests have on-property, Hilton knows how important it is to ensure that staff is well-cared for. When they're happy, their work is more enjoyable and customers feel it, which has a ripple effect on performance. With all team members bringing the best of themselves to work, Hilton’s performance is on the rise in the form of industry-leading service levels, increasing profitability and strong stock market performance.

Hilton recently described its path to success in sequential terms:

  1. Start with a clear set of values and a sense of purpose
  2. Design core programs aligned to those values, such as parental leave and the Go Hilton travel benefit
  3. Hold leaders accountable for living the values and breathing life into the programs
  4. With programs in place, strive to make performance sustainable, through Thrive@Hilton
  5. Invest in front-line team members, with higher engagement and retention delivering a return on that investment
  6. Finally, measure performance and employee experience, using data to refine and continue improving

In today’s economy—defined by speed, social technologies and customers who attach themselves to brands that reflect their values —organizations of every stripe must treat all employees as well as they treat customers. By doing so, you will not only create a great place to work for employees, but you will build the foundation necessary to create a strong brand and a high-performing company. As we like to say, it's better for employees, better for business, and better for the world.