Firms laud benefits of 'Best Places to Work' recognition

“A rare opportunity.”

“External validation of what we do.”

“Excellent for our reputation.”

That's what executives at some of the 15 firms named as the Best Places to Work in Money Management in 2012 said the distinction has meant to them.

The recognition —which has found its way onto plaques and posters and recruiting materials — was credited with boosting employee morale, eliciting positive feedback from clients and aiding in attracting talent.

Pensions & Investments recently extended to June 7 the deadline for consideration in the 2013 rankings process, allowing money managers a little more time to register for their chance to unseat the firms that topped last year's lists.

“As a benefit for clients, this gives better insight into the internal health of the company,” said Jeffrey Furber, CEO of Boston-based real estate investment firm AEW Capital Management LP, which ranked third last year among firms with 100 to 1,000 employees.

Designation as one of the Best Places to Work in Money Management is included in promotional materials to current and prospective clients from many of last year's winners and a sense of pride can be felt throughout the organizations, officials from those firms said.

“I think it was a big deal” for employees, Mr. Furber said. “And (the recognition) wasn't just for real estate, which made it a bigger deal.”

“It's been good for morale all around and I think clients like seeing that,” said Jim McCaughan, CEO of Des Moines-based Principal Global Investors. The parent company, Principal Financial Group, was ranked No. 1 in 2012 among managers with more than 1,000 employees.

Executives at many of the firms honored last year already knew they had a great place to work, but the recognition offers clients, prospects and employees insight into the work environment.

“It was external validation of what we set out to do — attract and retain strong talent in asset management,” said Mary Ellen Stanek, director of asset management at Baird Asset Management, Milwaukee, which ranked first for firms with less than 100 employees.

J. Joseph Veranth, chief investment officer at Dana Investment Advisors Inc., said potential clients have found the recognition on their own as they perform due diligence on the Brookfield, Wis.-based manager. That has been a great benefit for a smaller firm, he added. Dana was ranked No. 5 for managers with fewer than 100 employees.

“I expect lasting benefits.”

At Transamerica Corp., Cedar Rapids, Iowa, the recognition has made a major impact on the kind of candidates applying for jobs, said Barbara Whitebook, head of human resources. Diversified was ranked No. 2 for firms with more than 1,000 employees and has since merged with and adopted the Transamerica brand.

“We're finding that when we interview candidates, they'll say, "We heard you are a Best Places to Work in P&I' ... it's excellent for our reputation,” Ms. Whitebook said.

SEI's human resources department is actively using its recognition in recruiting potential candidates, said Dana Grosser, director of corporate public relations for the Oaks, Pa.-based manager.

Executives at several firms said going through the process — which includes an employee survey —gave them greater insight into the attitudes of their employees.

“It allowed us to really find out what employees are thinking and how they feel about the company,” AEW's Mr. Furber said. “In investment management, in my opinion, people are the only asset of the business.”

Mr. McCaughan at Principal echoed that sentiment: “In investment management, your assets are your people ... This all helps the perception that this is a good place to work.”

Ms. Whitebook said it was nice to participate in a special project like this that only involves the money management industry. While Diversified had participated in similar surveys in the past, they were mostly regional and the P&I one allowed the entire workforce to participate.

“It's been very positive and makes us feel like we're tops in the industry,” Ms. Whitebook said.

Several other firms cited the benefit of seeing how their workplace compared with an appropriate peer group, as opposed to a diverse set of employers.

“It's some friendly competition with the firms we're rubbing elbows with in the industry,” Ms. Whitebook said. She added participation was a painless process: Buck Consultants, P&I's partner for Best Places to Work in Money Management, sent the surveys directly to employees, and the survey took only took five minutes to complete.

Alice Lindenauer, head of human resources at Bala Cynwyd, Pa.-based Hamilton Lane, agreed.

“This process gave us a unique opportunity to benchmark our corporate culture against our peer group,” Ms. Lindenauer wrote in e-mailed comments. “There are a lot of lists out there, but to be compared head-to-head with firms of our size in our industry is a rare opportunity.” Hamilton Lane was ranked No. 1 for midsize companies.

AEW has seen valuable benefits, both with employees as well as clients. Mr. Furber said clients have become more savvy since the financial crisis, wanting to know more about the stability of a company. The Best Places to Work honor is included in AEW's pitch book to clients as the firm now sells more than ever on its culture and history and retention plans, he added.

Ms. Stanek said Baird has “received very strong feedback from clients” as well as when marketing to potential new clients.

“We spend a lot of time and answer a lot of questions about critical building blocks, such as who we are and how we think of asset management,” Ms. Stanek said.

She added that it really was an employee pride award.

“Because of the way the process works, it gives a direct and independent voice to the people themselves,” Ms. Stanek said. “It's, in fact, an award that that they are awarding to their employer.”

The pride of the firms is not just seen in promotional and marketing materials that are sent out or presented at meetings. AEW has a sign in its lobby for clients and employees to see every day. Transamerica also has posters and framed pictures of the honor in its lobby. SEI includes reprints of the issue in the kits for potential investors in its company stock, not to mention for potential investment management clients. Principal even held a couple of employee celebrations in the Des Moines office after receiving the recognition.