Intentionally or organically, organisational culture exists in every company. It is defined as a blend of the values, beliefs, taboos, symbols, rituals and myths all companies develop over time. Here’re five reasons why workplace culture is so important:
A recent Gallup reported that companies that scored in the top quartile on employee engagement have double the odds of success. They outperformed other companies by 10% on customer rating, 17% on productivity, 20% in sales and 21% in profitability.
However, employee engagement is rare; only 13% of employees feel engaged at work. Therefore, a healthy corporate culture is important to increase employee engagement and productivity. A study has shown that employees rate a company with a strong culture as more favourable.
Recruiting and training new hires costs a whopping 38% of annual employee earnings. One of the reasons for turnover is subpar employee benefits such as low wages, unusual working hours and work-life balance conflicts. It builds unhealthy resentment and automatically snuffs out any culture-building movement.
A good culture, on the contrary, makes an employee feel secure and well taken care of. This leads to employee retention. One of the suggestions for improvement in the company is to set a yearly review of employees benefits to ensure proper coverage. Why lose talents over an outdated policy?
High performers are 400% more productive than average ones. In fact, for occupations that require intensive knowledge and interaction, high performers are 800% more productive.
One-third of senior management leaders shared that, finding good talents is very challenging. Above income, a good culture is what attracts talents. Especially high-performing talents who know their value and can have their pick.
Over half of the employees in a study wish their company offered more flexible work periods. They also value a company who cares about their well-being by holding wellness programs, onsite health screenings and regular educational sessions. Set a good organisational culture and the right talent will walk through your door.
The last thing a company needs is a self-cannibalising and toxic culture. It sends your best employee out like a revolving door. A good corporate culture, on the other hand, sets the company to run strong and long. It fosters the ‘we’ instead of the ‘me’ mentality.
So, how do you create a healthy culture? Firstly, walk the talk of a positive corporate culture. Show how you value each employee by showing recognition, expressing gratitude and having frequent feedback sessions with them.
One of the encouraging quotes by business consultant Marcus Buckingham is: “Talent is the multiplier. The more energy and attention you invest in it, the greater the yield”. Be careful of whom you choose as a manager; make sure he or she also walks and talks about your culture.
A study showed that 90% of people would take a pay cut for a more meaningful job. In fact, over a quarter of employees quit their job because they wanted to do more meaningful work. That’s a high number.
Employees with meaningful work were shown to be 69% less likely to plan on quitting within the next half a year. They were also more hardworking, putting in one additional hour per week for working and take two fewer days of paid leave per year.
Beyond profits, we can ask ourselves what the purpose of ourselves to our company is. That will be the starting point of canvassing and communicating our purpose clearly and regularly to our employees.
Good Workplace Culture
A good organisational culture provides the ambient climate for your employees to grow and thrive to their maximum potential. We can’t agree more with one of the inspirational quotes for work by John Mackey, CEO and co-founder of Whole Foods Market: “If you are lucky enough to be someone’s employer, then you have a moral obligation to make sure people do look forward to coming to work in the morning”. That is one immense and noble responsibility for us as business owners.