The Importance of Company Culture

A recent Gallup Poll found that individuals who felt connected to their organization's culture were 68% less likely to feel burned out and 55% less likely to be watching for alternate job opportunities.

A lot of companies think their solution is increasing salaries but trying to fix high turnover issues by offering higher salaries is like bailing water out of a boat with a hole in the bottom. It might work in the short term but unless an organization puts in effort to create internal change they won’t be able to remedy their issue. So what is their issue? A lot of times it comes down to company culture. The word culture is thrown around a lot today in the business world, so let's talk realistically about what a positive company culture looks like. Believe it or not, it doesn’t look like ping pong tables and pizza parties, although these are sure to bring short-term appreciation from employees, they won’t keep them from jumping ship. So what will?

As CEO of a staffing agency I have learned how to spot a negative company culture from a mile away, this has helped me discern what differentiates a positive and negative company culture. Here are some characteristics I have instilled within my own organization and seen in clients that indicate a healthy and positive work culture.

1. Transparency: As one of our core values, transparency is nonnegotiable at HIRE Strategies but what makes it so important? Many companies try and sugarcoat things to their employees but when they don’t have a full understanding of what's happening it makes it more difficult for them to truly contribute to the solution. An open and honest line of communication in every aspect of business helps information flow freely and encourages people to share their ideas.
2. Investing in Employee Development: We all know the best way to hire is internally, so set yourself up for success early on as a CEO. It’s much more financially savvy to invest in the training of current employees than it is to hire someone new. This also makes employees feel valued and like you care about their development which promotes employee retention and loyalty.
3. Providing Clear & Quantifiable Responsibilities & KPIs: Setting a foundation is one of the most crucial aspects of a positive work experience. When you hire someone, ensure that you set them up for success. Outline exactly what success in their role looks like. If you haven’t outlined each role within your organization clearly, it might be time to do some internal work!
4. Hire Strong Leaders: Statistics show that a lot of workplace discontent is tied to who someone's supervisor is. Many companies hire based on technical qualifications, even for supervisory rules which is how we get bad managers in leadership positions. Someone can be extremely technically qualified, but be an absolutely incompetent manager. Ensure that these positions have requirements regarding leadership skills and abilities and invest in their training as a leader. You can ensure an amazing company-wide culture but if a team manager isn’t exemplifying that then their direct reports aren’t going to see it!
5. Don’t Assume, ASK!: So you’ve examined the above and are confident you have done the work but still aren’t seeing the results. Ask your employees! If you've truly created an environment of transparency, you should be able to pinpoint the issue. This can be done through one-on-ones, team meetings, or anonymous surveys but employee feedback should always be at the core of decision making when it comes to internal culture. They know what they want, so let them tell you!

This isn’t a catch-all guide to company culture but it is a jumping-off point! Examine each of these things internally and look at where you can improve. We have successfully helped clients audit their culture, then create and execute an improvement plan. This has resulted in increased retention, as well as improved productivity.