Washington business leaders get it: It's just good business to be a Best Company to Work For. And we know it's no accident when a company is listed as one of Washington CEO Magazine's Best Companies to Work For.

George Russell of Russell Investment Group was a champion of the best workplaces idea. At the first Washington CEO Best Companies to Work For Awards ceremony, he said, "This program floats all boats higher in our state." Russell's business legacy demonstrates the value proposition for striving to be a Best Company to Work For. Hiring and developing the best employees facilitates superior customer service, resulting in excellent returns to shareholders and enhancing our communities overall. It's a win-win situation. Russell is just one of several examples in Washington.

Washington companies realize that being a Best Company to Work For is more important now than ever. The labor market is tight. The April unemployment rate in Washington state fell to 4.4 percent, below the 4.8 percent rate at the peak of the bubble in March 2000, according to the federal Bureau of Labor Statistics. For the Seattle-Tacoma-Bellevue region, the unemployment rate was 3.8 percent in April, again at its lowest level in a decade. Finding and keeping great talent that will enable future growth has become much more difficult.

And yet, the current low unemployment rate is just one element of the brewing "labor market perfect storm" for companies. In the United States, 8,000-10,000 baby b­­­­oomers are turning 60 every day. There are not enough employees from Generation X or Y to take the place of the members of older generations who will retire. Every skilled worker of every age will be needed to fill the vacuum. To compete effectively and attract the necessary employees, companies must be known as great workplaces.

Being a Best Company also means getting great business results. The research conducted between 1996 and 2001 on the performance of publicly traded large company finalists showed that investment returns over a 10-year period were more than double the S&P 500 index returns. Best Companies finalists - no matter who is doing the evaluation - report significantly lower turnover rates than their industry peers, reducing recruiting and training costs.

A logical question at this point might be, what are the changes leaders can implement to become a Best Company to Work For?  I propose these five categories as a human resources scorecard.

1. A Commitment to Learning describes a company's intentionality about encouraging and developing its employees as individuals and as teams. It's more than providing growth and advancement opportunities. As managers invest in employees' performance, they also demonstrate concern for the employees as individuals. As a result, these employees are motivated to better perform in their work and grow as valued and valuable employees.
2. A Culture of Character is developed as leaders and managers set the standard for transparency, honesty and high levels of trust. In this post-Enron world, employees understand the importance of character. The Best Companies implement cascading communication strategies so all employees are regularly informed of the organization's current state and direction. However, it's also important that frequent communication comes from trustworthy people.
3. The Competence of Leaders in the organization to effectively run the business is a common theme. Well-managed organizations hire qualified employees, effectively motivate and reward them and encourage teamwork across departments. They also employ a winning strategy to meet their customers' needs while providing a return on their shareholders' investment.
4. A Climate for Action describes a proactive decision-making process in the workplace. In Best Companies, not only are employees encouraged to be innovative, but their suggestions are regularly sought and acted on. They become engaged in their work and emotionally invested in the success of their organization.
5. Competitive Compensation rounds out this list. Competitive pay and benefits are important, as employees feel valued by their company's investment in their health, family and future. Best Companies reward top performers with more responsibility and recognition, showing their appreciation for the employees' contributions and service.