A recent study found a direct link between company culture and employee performance and retention. Additional data shows a link between company culture and profitability.
While it’s clear that company culture is important, there is a fine line between dictating a company culture and allowing it to develop naturally. Leaders who try to control too much risk stifling change while too little control can create a cultural vacuum.
The study confirms that organizational integrity in hand with a clear sense of belonging and purpose is crucial to a positive employee experience. Because of this, company culture needs to be consistent throughout.
With $11 billion lost each year as a result of employee turnover, it’s more important than ever to ensure employees feel needed and happy with their jobs. With a strong company culture, employers can save money on recruiting and training costs.
Other studies show that there is also a correlation between a company’s culture and its profits. When employees feel a sense of purpose, there are more engaged in the business, which results in an increase in profits.
However, employers must take a thoughtful approach to developing a positive culture. While employers should not control every move, if they have no part of the development of culture, it may form into something they don’t want.
In order to develop a positive company culture, an employer should ensure all employees feel like they’re part of a team. Whether it’s within departments or geographically, employees should be encouraged to work in teams.
Additionally, all employees should be treated fairly. This means that people who are putting in real effort should get noticed by higher-up employees.
Fairness also boils down to things like time off and sick days. With 37% of families saying that vacations make them happy, employees should be given adequate time to do those types of things. Employees should not only be given time off, but they should be encouraged to take it. Burnt out employees do nothing but decrease productivity, and that’s not good for them or the company.
Along with time off, employees should be given opportunities to learn new things. With the implementation of development programs, training, and new technology, employees can be encouraged to learn something new. This not only keeps them engaged in the company but helps them grow personally as well.
And lastly, a great company culture includes the executives and managers. At large businesses, it can be difficult for executives to find time to really engage with their employers. However, when employees see their managers being productive and involved in the company, it makes them want to do the same.
Overall, the study confirmed when many employers already know: culture matters. With a poor culture, a company will continue to decrease profitability over time and continue to lose employees at a steady rate.