Company culture is one of the most important aspects of any company. It can make or break a business, even if profits are high. Culture is something that affects every single person in an organisation and how they work with each other on a daily basis, so it should be something companies take seriously.
Why Does Company Culture Matter?
Company culture matters because it affects employee morale. This can impact employee retention, hiring, efficiency, and overall productivity of the organisation as a whole. It can cause a toxic environment where it’s difficult to work with each other when things aren’t going right, or someone makes a bad decision.
Company culture is something that has been written and talked about quite a bit in the business world, and here are some reasons why it’s so important to constantly monitor:
Increases Employee Retention
Employee turnover is very expensive. It can cost you roughly 20% of the employee’s annual salary to replace someone. And this doesn’t include the time it takes to hire a new person.
Hiring someone new takes time, especially for in-demand talent. This means you’re paying two salaries instead of one, which means the 20% figure goes up.
Compare this to an employee who’s been with you for ten years and has been promoted four times during that tenure. That person is likely earning more than they were initially hired at due to performance and promotions.
When they leave, you’re now dealing with getting a new employee in place who is ready to hit the ground running. The time and expense it takes to get this person up to speed on your systems and processes can be really costly.
Companies with strong company culture are able to hire and keep people because there’s a better working environment for employees. This, in turn, leads to higher employee retention and lower turnover rates, which saves you money.
Creates more productive employees
A poor company culture can really bring down the motivation of your employees. They can act unethically or not put forth their best effort when they feel as if they don’t belong in your company. When this happens, productivity goes down, and it becomes more difficult to get work done on a daily basis.
A great culture is one that allows every person, regardless of rank, to voice their opinion and share feedback on how things are going. It’s a place where everyone knows they belong, and it will always be a welcoming place for them to work.
Improving your company culture takes time and effort, and you can’t expect things to change overnight. It takes a lot of hard work and learning to help employees understand the company’s vision and goals and how to engage in them.
So how do you improve your company culture? The answer is by making changes on a daily basis. You have to understand that culture is not something that can be changed overnight, but something you have to constantly monitor and improve.
Here are some ways to do this:
1. View what’s working and what isn’t. Watch how your employees interact with each other on a daily basis. Is it productive and friendly? Are they respectful to each other?
2. Communicate with your employees regularly and share weekly updates on company goals, growth plans, and how everyone can help achieve them.
3. Give people opportunities where they can make mistakes. This way, they can learn and grow from it and improve their skills.
4. Make people accountable for their actions. One of the easiest ways to keep them in check is by having regular one-to-ones with your employees. Do this often enough, and it is easy to keep track of how they’re handling their workloads.
5. Along these same lines, you should plan your company’s growth using some of your best employees. They will be instrumental in the success of the business and will help guide you along the way.
While company culture is often difficult to define, it can make a huge difference in how your business is run. Great company culture is one that encourages collaboration, honesty, and transparency. It won’t come overnight, but with time and effort, you can help your business reach the next level.
Krista Bates – July 2021