Recently, Indeed released a list of the best companies to work for by compensation and benefits. Indeed used its employer review database to analyze over 18 million reviews and see what companies ranked highest.
This is great for the employees, but it might also be great for investors.
Mutual fund manager Jerry Dodson has made a career off of the idea that companies with happier employees do better in the long run. His fund, Parnassus Endeavor, has delivered annualized returns of 12.2% since 2005.
So what other companies are good places to work on top of being portfolio-enriching stocks? And what makes a company a good place to work?
Compensation and benefits are just one area that employees care about — albeit the area they care most about. For this list, I looked at a number of different lists that ranked companies according to how their employees feel. The list covers a range of sectors, including tech, telecommunications, banking and retail.
They’re all large companies — their market caps range from $37 billion to almost $900 billion — with strong histories.
But most importantly, they’re all companies that treat their employees well.
Stocks to Buy for Great Pay and Benefits #9: Verizon (VZ)
The telecommunications giant Verizon Communications Inc. (NYSE:VZ) made Indeed’s list of “Best Places to Work” due to its salaries and the benefits it offers employees. Apart from 401k matching, performance-based incentives and other more standard benefits, Verizon offers its workers discounts on products, adoption expense assistance and tuition assistance.
The company also has an Employee Relief Fund for the victims of natural disasters. This fund allows Verizon employees worldwide to donate to a fund that will pay out to employees who lose their homes in disasters — Verizon matches every dollar donated.
Verizon was also included on CareerBliss’ list of happiest companies in the U.S. This list uses unsolicited reviews that asked tens of thousands of workers questions about management, workplace environment and satisfaction with job function and growth opportunities.
If you’re looking for another telecom play, AT&T Inc. (NYSE:T) also made the Indeed list.
Stocks to Buy for Great Pay and Benefits #8: Capital One (COF)
Credit card, loan, consumer and commercial banking and savings company Capital One Financial Corp. (NYSE:COF) came in at number six on Indeed’s list. Capital One was also 17 on Fortune’s “100 Best Companies to Work For” list, ranking for the twelfth year in a row. The company also offers tuition reimbursement and adoption and surrogacy reimbursements. Even part-time workers are eligible for health insurance and paid time off.
Capital One is committed to diversity and boasts high ratings from employees in the areas of atmosphere, rewards, communication and management. The company also sponsored the Grace Hopper Celebration of Women in Computing conference. And, in addition, the company also supports groups such as Women Who Code, Black Girls Code, the Anita Borg Institute and many other organizations dedicated to increasing gender equality in technology.
Capital One also made the Glassdoor “2018 Employee’s Choice” List of Best Places to work, based on the company’s massive collection of employee and applicant reviews.
Stocks to Buy for Great Pay and Benefits #7: Nvidia (NVDA)
Great news for investors! The InvestorPlace “Best Stock of 2017” is also a great company to work for.
Employees of the chipmaker feel like the importance of family is really recognized. Nvidia has one of the most generous parental leave policies in the U.S. Birth mothers can take up to 22 weeks of fully-paid leave while fathers, adoptive mothers and foster parents can take up to 12. After leave ends, employees have an additional 8 weeks of “flex time” when they can choose their working hours and work from home.
Nvidia also offers unlimited vacation time, mental health assistance (on top of 90% company-paid health insurance) and student loan debt repayment.
And when NVDA stock has gained 1724% in value in the last five years, who can argue with the results of keeping employees happy?
Stocks to Buy for Great Pay and Benefits #6: Starbucks (SBUX)
Starbucks Corporation (NASDAQ:SBUX) ranks on Indeed, Glassdoor and CareerBliss as a great place to work. In some cities, the massive coffee chain is already on every block and it’s slowly taking over the world. This takes a whopping quarter-million employees — making their happiness all the more impressive.
Indeed points out the company’s Starbucks College Achievement Plan, which covers the tuition of an entire bachelor’s degree through Arizona State University (for full- and part-time employees!).
But Starbucks actually creates an individual benefits package for all eligible partners (anyone working more than 20 hours a week) called “Your Special Blend.” This lets the company fund only the benefits that make each employee happiest, making their satisfaction even more cost-effective.
Stocks to Buy for Great Pay and Benefits #5: Salesforce (CRM)
Salesforce.com, Inc. (NYSE:CRM) tops the Fortune list of 100 Best companies to work for while also appearing on the Glassdoor list, Business Insider best tech-companies list and Indeed’s Top Tech Companies to Work for in 2018. The cloud-computing company is clearly dedicated to creating a great work environment for its employees.
Salesforce offers generous benefits to full- and part-time employees. Primary and secondary caregivers to newborns and adopted children receive 26 and 12 weeks off, respectively, at 80% of their on-target earnings. (This includes base salary, plus any commissions or bonuses.)
Salesforce has an Office of Equality dedicated to ensuring equality across gender, sexuality, race, nationality and religion. A recent equal pay assessment evaluated all salaries and bonuses globally. And Salesforce spent about $3 million to correct any unfair pay differences.
Salesforce also gives back to the community by giving employees 56 paid hours a year to volunteer.
Stocks to Buy for Great Pay and Benefits #4: Delta (DAL)
If you’re looking to invest in travel, Delta Air Lines, Inc. (NYSE:DAL) might be the way to go. Not only is it one of largest and most established airlines in the world, it treats its employees well.
Delta Airlines has an incredible profit-sharing program and has paid out more than $5 billion dollars to employees in the last 5 years. The airline also has multiple programs that allow employees at all levels to interact with executives and become part of the decision-making process.
The company offers a lot of the benefits as other companies on this list. But something unique to Delta is the Employee Survivor Flight. Each October, Delta breast cancer survivors and current patients are flown on Delta’s Pink Plane between two major Delta hubs with celebrations and fun events on both sides of the trip.
If you’re looking for a low-budget airline, Southwest Airlines Co (NYSE:LUV) appears on many of the same lists as Delta.
Stocks to Buy for Great Pay and Benefits #3: Costco (COST)
Costco Wholesale Corporation (NADAQ:COST) tops the Indeed list of best places to work. The membership-based wholesaler also appears on Business Insider’s “10 Best Retail Companies to Work for in 2017, According to Employees.”
The big reason for Costco’s inclusion on this list is pay for all employees.Even entry-level hourly workers at Costco stores start at $13 an hour or higher. Costco guarantees pay increases based on hours worked and offers benefits for full- and part-time employees.
While that seems like the norm — especially on this list — for hourly retail this often isn’t the case.
Stocks to Buy for Great Pay and Benefits #2: Microsoft (MSFT)
This list isn’t ranked, but if it were, these next two picks would still be two and one, respectively.
Microsoft Corporation (NASDAQ:MSFT) appears on most of the lists mentioned so far: Indeed, Glassdoor, CareerBliss and both Business Insider’s and Indeed’s specialized tech company lists.
Most of these lists mentioned the same thing — a good work-life balance. That’s uncommon at massive tech companies, but Microsoft provides on-site healthcare and flu shots for employees, generous family leave (up to 20 weeks for birth mothers and 12 weeks for all other parents — fully paid), discounted stock purchases, and financial education and advice.
Stocks to Buy for Great Pay and Benefits #1: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) tops this list for a reason. Not only is it a massive, innovative company with a strong outlook for the future, it’s a great place to work. Apple appears on all the same lists as Microsoft, with one key addition. Apple also appears on Business Insider’s list of best retailers to work for.
This shows that Apple treats employees well no matter what job they’re doing. Whether they’re inventing the next iPhone or teaching people how to use their products at the Genius Bar.
Apple offers generous employee discounts on products as well as great benefits. They will even pay for female employees to freeze their eggs. This helps women at Apple avoid the career setbacks that might accompany having children at the “wrong” time.
Apple employees are also happy to be on the cutting edge of technology in a fun work environment. For example, Apple throws regular employee beer bashes — with some big names in music.
And people are happy with management as well: CEO Tim Cook has been among the highest-rated CEOs on Glassdoor since 2013.
As of this writing, Regina Borsellino held no positions in the aforementioned securities.