At Associated Industries, we’ve seen it time and again: companies that focus on their people don’t just build better cultures—they build better businesses. And yes, this isn’t just about feel-good initiatives or perks. It’s about real, measurable financial results.
Take the Fortune 100 Best Companies to Work For® list, for example. These companies consistently outperform the market, showing that when employees thrive, businesses thrive too. This isn’t just some corporate fairy tale. The numbers back it up. Companies with strong employee engagement and well-run HR practices are beating benchmarks like the Russell 1000—a stock market index that tracks the performance of the 1,000 largest publicly traded companies in the U.S. These businesses are outpacing some of the biggest names in the market, and their secret isn’t complicated: it’s their people.
Now, most of the businesses we work with at Associated Industries aren’t large corporations. Many aren’t publicly traded, and some are small teams. But here’s the thing: the principles that drive the success of these massive companies apply just as much to smaller employers. In fact, they might matter even more. When you have fewer employees, every person counts. The stronger your HR practices, the more engaged and productive your team will be—no matter the size of your organization.
The cost of losing employees is huge. Whether it’s replacing a seasoned employee or training someone new, the dollars add up fast. Strong HR practices that prioritize employee retention can save you thousands. Create a work environment that people want to stick around in—whether that’s through offering flexibility, ensuring they have growth opportunities, or simply recognizing their contributions. This doesn’t require a giant budget. A thoughtful thank you or a genuine check-in can go a long way.
It’s no secret that employees who feel heard are more invested in their work. For smaller businesses, this can be your secret weapon. You’re not managing thousands of employees, so you have the opportunity to establish real, open communication across your team. Set the tone by encouraging feedback—both giving and receiving—and make sure everyone knows their voice matters. Clear communication breeds trust, and trust is the bedrock of a strong, productive workforce.
One of the keys to success in business is having an environment where good ideas can rise to the top, regardless of where they come from. And here’s where smaller companies have a real advantage: you can move quickly. In a small business, you don’t have to cut through layers of bureaucracy to get a good idea off the ground. It’s about creating a culture that values practical innovation—where smart, workable ideas are recognized and rewarded.
This isn’t about promoting some top-down agenda. It’s about encouraging each team member to think creatively and find better ways to solve problems, while staying focused on what works. Whether it’s a new way to streamline a process or an approach to boost customer satisfaction, your best ideas often come from the people closest to the work. When everyone feels like they have a stake in the outcome, innovation becomes part of the everyday process—not just something that’s mandated from above.
Investing in your employees’ well-being doesn’t mean you need to turn your office into a day spa. Throwing a yoga class in the breakroom might seem like a good idea (but beware—if someone gets hurt or feels pressured to join, you’re looking at potential liability). The real key to well-being is showing your employees that you see them as people, not just cogs in the machine. Offering mental health days, encouraging PTO, or creating flexible work options can have a huge impact on their morale, loyalty, and, yes, productivity.
But here’s where it gets tricky: even the best intentions can lead to headaches if they’re not thought through properly. That’s where our HR Advisors at Associated Industries come in. We can help you roll out the nice things—like improving employee well-being—without stumbling into legal or compliance pitfalls. Our MemberCare team can guide you in setting up thoughtful, effective policies that protect your business and support your employees. Because when you get it right, the payoff isn’t just happier employees—it’s a stronger, safer, and more successful workplace for everyone.
No, you don’t need to roll out lavish bonuses or elaborate perks. What employees really want is recognition for their hard work. It’s about noticing the small wins and letting people know they’re appreciated. This is especially important in small businesses where the impact of each person’s work is felt company-wide. A simple, genuine recognition can boost morale and reinforce the idea that everyone is in this together.
At the end of the day, it’s not about how big or small your company is; it’s about the strength of your commitment to your people. The best HR practices aren’t out of reach for smaller businesses. They’re practical, pragmatic, and the returns can be extraordinary. As the data from Great Place to Work shows, focusing on your employees isn’t just good for them—it’s good for business. And that’s something every company, big or small, can get behind.