Exploring Company Culture: Insights and Analysis
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Company culture plays a huge role in your organization’s success. It’s your DNA, the driving force behind every decision you make and the secret sauce that will set you apart from your competition. But what exactly is it and how can you create a company culture that will help you thrive??
If you asked business leaders to name the most important factors in their company’s success, what do you think they’d say?
Strategy? Innovation? Sales? The answer is in fact, company culture.?
But what exactly is company culture? How do you build it, how do you manage it and what kind of impact does it have on your business??
In this guide, we’ll take a deep dive into everything you need to know about company culture , so that you can unlock its benefits for your organization.?
What is Company Culture??
It’s a term that we hear thrown around a lot these days, but when people talk about company culture what exactly do they mean??
In a nutshell - company culture is the term we use to describe the environment that you create for your employees to work in . Company culture is your business’s DNA . It’s the values, attitudes, beliefs and behaviors that your employees share and the day-to-day experiences they have at work . It’s crucial because it defines every action, every decision and every interaction that your organization has along with thousands of other aspects (both big and small) that contribute to it.
If all of that sounds a little bit nebulous, it’s because it is. The problem with company culture is that it can be incredibly hard to pin down. It’s a moving target, constantly changing with every day and every interaction.?
Because it’s intangible, businesses can find it hard to positively impact their company culture. After all, how can you possibly hope to hit a target that you can't see and that’s constantly moving? But the benefits of a positive company culture mean that the effort you put into shaping it can pay dividends.?
Why is Company Culture so Important??
One of the biggest reasons why company culture is so important is because it matters to your employees. We spend, on average, a third of our lives at work . So it’s only natural that the environment that we spend so much of our time in can have a massive impact on the employee experience.?
Any leader knows that their employees are the lifeblood of their business. And in today’s climate, where the Battle for Talent and the so-called Great Resignation dominate boardrooms across the globe, that statement rings true like never before. In order to succeed companies need to attract the best talent, keep hold of them and engage them in their work. A thriving company culture can help you to achieve all of that and more.?
It can boost morale , increase productivity , enhance engagement and improve innovation . This, in turn, leads to higher levels of retention , reduced recruitment costs and a reputation that boosts your brand and your bottom line .?
That’s because a great company culture doesn't just impact your people, it also impacts your customers . It impacts every interaction they have with your business. It drives what they see, what they hear and how they feel when they interact with you. And that can have a significant impact on their experience. We all know that first impressions count. Perception is everything and ultimately the impact of your company culture boils down to the difference between a one-off buying experience and a long-term relationship with your customers.?
7 Benefits of a Healthy Company Culture
What Does a Healthy Company Culture Look Like???
We now know why it’s so important, but in practice, what does a healthy company culture look like??
Cultures vary wildly from organization to organization and though researchers have categorized them , every one is unique. There are however a few key characteristics that are common to all healthy company cultures, telltale signs that will tell you whether it is a positive place to work…?
People will feel valued
Everyone wants to feel like they’re important and that their contributions make a difference to the company they are working in. That’s why great company cultures ensure that their people know their value and don’t just treat them as another cog in the machine.?
Employees respect one another
Positive company cultures all feature one common trait - and that’s respect. The very best organizations don't just treat their people with respect, but ask their people to show the same respect to their colleagues too. This can take many forms. It can be how people interact with one another, being empathetic towards peers, showing appreciation for people’s time, or recognizing and rewarding their efforts. But the key is to make sure it shows up in every interaction.?
Diversity is more than just a buzzword
Diversity, equity and inclusion is more than just the latest business buzzword - it’s a key component of healthy company cultures. Your employees want to know that they matter, that their viewpoint is welcomed and their perspective encouraged. So when your workforce is diverse and accepting it sends the signal that your company is too.?
Wellbeing is prioritized
Health and wellbeing are major concerns for your employees. In an age of overworking and burnout, your people want to know that their job won’t harm their mental or physical health and that your company will take steps to protect them from negativity. Great employers ensure that wellbeing is front and center in everything they do.?
Effective leadership?
Everything starts from the top, and healthy company cultures are no different. Leaders are the role models of your company. Their job is to inspire, motivate and encourage others. When they get it right they’ll also model the kind of behaviors that you want your people to share, setting the tone for your entire culture.?
Clear mission and values
Your company mission is more than just a slogan, it’s something that defines your entire company and guides every decision you make. Businesses with healthy company cultures use this to their advantage. By ensuring that everyone understands the importance of your mission and shares your values, you can set expectations and align everyone so that they are pushing towards the same shared goal.
The environment is supportive
Where would you rather work? An environment where there are tight deadlines, where your work is micromanaged and your day-to-day activity is closely monitored? Or somewhere where you are trusted to work in the way you want to, given the responsibility to take on new challenges and enabled to push new boundaries? When your people are given the freedom to own their work it can create an enormous sense of empowerment and pride that translates into a thriving company culture.
Work/life balance
Another key indicator of good company culture is work/life balance . Offering your employees the opportunity to work in hybrid or remote settings can have a huge impact, while flexible working hours enable them to fit work in around their personal lives and not the other way around. It’s a small step that makes a big difference to the lives of your employees and in turn your company culture.
Low turnover
This one may sound simple, but it’s still worth pointing out - companies with great cultures will have low turnovers. That’s because employees will enjoy their jobs, be engaged in their roles and invested in their long-term futures. That all translates to fewer people leaving. Of course, the opposite is also true, and if a company has high turnover it’s generally a good sign that they have a negative company culture.?
Development opportunities
A surefire sign that a business has a great company culture is how they treat career development. The top employers understand that employees want to be supported in the long run and that their leaders are invested in their success, that’s why they offer clear career development pathways.?
How to Evaluate Your Company Culture?
Whether you’re looking to discover what kind of culture your company currently has, or you want to see whether your initiatives are working, at some point you are going to want to evaluate your company culture.?
This is when you’ll attempt to take the intangible factors that go into making up a company culture and turn them into cold hard facts - data that you can measure, benchmark and track over time.?
There are several techniques that you can use to evaluate your company culture. You can use some or all of these as part of your own efforts, but finding the right combination of tools and techniques will be unique to each business.?
So if you’re looking for ideas to evaluate your company culture here are a few ways you can start measuring sentiment in your organization.
Consider the Competing Values Framework (CVF)
Originally conceived in the 1980s the Competing Values Framework (CVF) was developed to help organizations to identify what they value the most. It’s a deceptively simple model based on the idea that most company cultures can be defined using two competing axes that run between opposite or competing values. It’s a fantastic tool that can not only help you to locate where your current culture is at, but the journey you will need to take to change it.?
Look at your engagement surveys
These days pretty much every company conducts some form of employee engagement survey. If you don’t, that’s something that you will want to remedy right away. The great thing about employee engagement surveys is not only that they tell your people that you care about their thoughts and opinions - a key component of all great cultures - but it also gives you invaluable insight on the current state of your company culture.?
Conduct a dedicated culture assessment
If you really want to drill down into your company culture then you might want to conduct a standalone assessment . Much like employee engagement surveys, these company culture assessments speak directly to your leaders and employees to check their views on your culture. They are an incredibly useful tool to find out what is working, what’s not and where your culture needs improvement.?
Consider external indicators
Beyond your own organization there are a host of external resources that can help you to evaluate your company culture. Sites like Indeed and Glassdoor enable current and former employees to review your company culture . Because they are conducted anonymously these sites provide a good snapshot of what your past and present employees really think of your company.?
Don’t forget about exit interviews
Just because an employee has decided to leave your organization, doesn’t mean that you should ignore them. Indeed, existing employees are an invaluable resource that can provide you with unfiltered insight into the current state of your company culture. So make culture a key part of your exit interviews. Ask questions about your culture, what can be improved, what is working and why they have decided to leave? This will all help you to evaluate your culture and the steps you need to take to improve it.?
Explore your HR metrics
Your business no doubt already has a host of data points that can give you an insight into your company culture. Metrics like retention rates, absenteeism and employee engagement can all be put together to see if you have a positive company culture, or if you have a culture that needs improving. Typically positive cultures are reflected in high retention and employee engagement alongside low absenteeism and turnover.?
How to Improve Your Company Culture?
If you’ve made it this far, you’re not going to want to miss these top tips for improving your company culture as well as a deep dive into companies with some of the best organizational cultures. Click here to keep reading!