Top secrets of Apple and Google companies’ employees, why are they so productive? Research indicates that employees at Apple, Google, and Netflix are more efficient and capable than those at average companies. The initial assumption might be that this is due to these companies hiring only individuals of exceptional caliber and effectiveness. While this is partially accurate, it represents only half of the narrative.
Recent research has found that companies such as Apple and Google have 16% star performers, compared to 15% at other companies—a seemingly minor difference. However, Apple and Google achieve significantly higher output with their 16% of star players by effectively leveraging their high performers.
Executives from large companies across 12 industry sectors worldwide identified three components of human capital that most impact productivity: time, talent, and energy. Companies in the top quartile optimize their business processes to be 40% more productive than the average, resulting in profit margins that are 30%-50% higher than industry norms.
“They accomplish more by 10 a.m. on Thursday than others do in an entire week, and they continue working relentlessly,” says Mankins. “This difference accumulates each year; over a decade, they can achieve 30 times more than others, all with the same number of employees.”
Several factors distinguish major tech giants like Apple and Google from average companies. Average companies typically adopt an approach of unintentional egalitarianism, distributing star talent across all roles. In contrast, companies like Google and Apple employ an intentionally non-egalitarian strategy. They identify a select few roles that are critical to their business’s success and execution, and ensure that 95% of these key positions are filled with top-tier talent.
An illustration of this difference can be seen in Apple and Microsoft during the early 2000s, according to Mankins. “It took 600 Apple engineers less than two years to develop, debug, and deploy iOS 10,” he explains. “In contrast, 10,000 Microsoft engineers took over five years to develop, launch, and ultimately retract Vista. The key difference lies in how these companies chose to structure their teams.”
Apple employed all-star teams for the development of iOS 10, recognizing it as a mission-critical endeavor. Furthermore, rewards were contingent upon team performance; no individual on the team could receive an exceptional performance appraisal unless the entire team achieved success. In contrast, Microsoft utilized a stacked ranking system where 20% of each team received an exceptional review, with compensation primarily tied to individual performance. Eventually, Microsoft discontinued the stacked ranking system.
In large tech companies, it’s notable that they cultivate an environment that motivates employees to strive for excellence. Research indicates that an engaged employee is 44% more productive than a satisfied one. However, an inspired employee is nearly 125% more productive than their satisfied counterpart. Encouraging individuals to aspire to be role models amplifies their sense of purpose and drive, ultimately leading to increased productivity and exceptional performance. This is a hallmark of big tech giants—they inspire their employees to continuously improve and reach extraordinary heights.
