Understanding Workplace Culture
In a competitive job market where unemployment is low and turnover is rising, companies must ensure that they have the best working environment possible to attract and retain quality employees. The concept of a “good” workplace culture can vary from one company to another. If you were to ask every individual what makes a good workplace, you would receive a multitude of responses.
The Importance of Culture
It is important to have a workplace culture that allows people to enjoy coming to work.
Think about yourself for a second, do you want to spend the bulk of your days in a place that you dread?
The importance of workplace culture cannot be understated. In 2021, 94% of entrepreneurs and 88% of people searching for jobs say a healthy culture is crucial for success.
They are not wrong either, as businesses with a high-scoring workplace culture attract high-level employees and even lead to a 33% revenue increase.
It is not just the employees or job seekers emphasizing culture, 91% of managers in the U.S. believe how an applicant aligns with their workplace culture is more important than their skillset or past experiences.
So, a positive workplace culture allows your business to:
Attract better employees.
Engage employees effectively.
Lead to higher revenues and better output.
As we navigate out of the COVID-19 crisis, job seekers and recruiters are putting company culture at the top of their requirement lists, and they are right to do so.
What is Culture?
It starts at the top. Company culture is the sum of your company's values, traditions, beliefs, interactions, behaviors, and attitudes.
If your organization’s leaders and decision-makers do not believe a positive culture is important for the workplace, then one can never truly be established.
Luckily, recent studies show that more than 90% of CEOs and CFOs surveyed from Forbes said that culture was important at their firms. Additionally, 46% of those surveyed said that if a business they looked to acquire did not have a culture that aligned with their own, they would not go through with the deal.
What truly defines culture?
Is it an abundance of snacks, parties, and events for your office?
Well, those may be a component, but a positive culture can be viewed as one that puts the needs of its people before profit.
A positive workplace culture:
Encourages collaboration among all departments.
Establishes accountabilities for all employees.
Consistently recognizes and rewards an employee’s hard work.
Allows employees to enjoy coming to work each day energized and focused.
The Importance of Workplace Culture on Business
There is no debate of the impact that a positive culture has on company morale, but it is overwhelmingly positive for its margins as well.
In a negative workplace culture, employees are consistently disengaged. Due to events like COVID, 51% of employees in the U.S. report that they are not engaged or that they dislike their job. Reports from Gallup show that organizations who boast a highly engaged work environment see a 21% higher profitability.
If you build it, they will stay
Employee retention is another massive benefit of positive workplace culture. Currently, we are experiencing the Great Resignation, a phenomenon that has led to an alarming 10.9 million open jobs at the end of July 2021.
Keeping the best employees in a company is more important than simply finding them. Workplace culture is a driving force for retention as those who do not like their organization’s culture are 24% more likely to quit.
Employees who have a positive workplace culture are:
58% more likely to stay at a lower-paying position if they work for a great boss.
Much more willing to work a lower-paying position if the job quality is high.
More likely to settle, 32% of seekers say they will take a lower-paying position if corporate culture aligns with personal goals.
Company Culture Takeaways
An organization's culture can have a significant impact on employees, creating some that are amazing, while others are incredibly toxic. It is important that in today’s job market, employees and managers are not settling for a culture that does not align with their values. This blog series will help you identify the components of a strong culture and what it means to have a strong workplace culture in 2021.
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