5 Practical Steps to Elevate Your Company Culture and Improve Retention
It should shock no one that we’re in the midst of a "Great Resignation." Across the country, businesses are struggling to keep their doors open due to a lack of an available workforce.
While there are many reasons behind the number of individuals leaving their jobs post-pandemic, one aspect is clear: A company’s culture defines its personality and sets the tone for how employees interact with one another and customers. It’s a significant factor in attracting and retaining top talent and an important contributor to any company's success.
Good company culture will offer clear direction, flexibility in work hours, autonomy over projects, personal growth opportunities, and more. Without a healthy company culture, you can all but guarantee that your team members will jump ship for another role – even one that doesn't pay as well!
So, what can you do as a business leader to fight the tide and emerge on the other side stronger? It all begins with understanding and implementing a solid company culture.
What is Company Culture?
Company culture can be defined as the behavior of people within a company. It encompasses many things, including how employees view and treat each other, their feelings towards their employer, and the overall mood within the organization.
As well as defining an organization's personality, company culture also determines behaviors in line with its values. Culture is so influential that it can be the deciding factor between whether an employee stays or leaves. Individuals will weigh up several factors, including salary and benefits when deciding on their career path.
But company culture isn’t just about the employees; it also determines how customers perceive your brand. When business leaders begin to realize the importance of culture to the success of their company, they set about defining and building it. As well as reflecting the personality and values of the organization, a strong corporate culture can also reflect positive brand attributes in customers’ minds.
However, while companies are largely concerned with recruiting new employees, many are overlooking one critical aspect-retaining existing ones.
Why Is Company Culture Important?
Thriving company culture is vital to a successful business, attracting new talent, and retaining its current employees. Here are some reasons why this is the case:
1. Company culture attracts and retains top talent.
People want to feel comfortable and safe when they come to work every day. A positive company culture is essential to creating a work environment where everyone feels valued, included, and considered. Attracting top talent is possible when your employees are happy in their position.
A strong corporate culture can also help with recruitment by boosting your brand's appeal to prospective job candidates. Think of it this way: people want to work for companies that feel progressive, trendy, and fulfilling.
2. Company culture encourages employee engagement.
This is a challenging subject for many business leaders who often struggle to increase employee engagement. A company culture of inclusion and respect can encourage employees to be more engaged in their work by fully investing in what they're doing. By working together collaboratively and creatively, employees are more likely to develop innovative solutions and ideas.
When an employee is working within an environment where their input is valued and heard by others in the company, it motivates them to put in extra effort for their employer. A review of studies conducted on engagement levels found that only 15% of workers were actively engaged in their jobs. The engagement rate was much lower for companies with poor company culture.
3. Company culture strengthens employee retention.
It's no secret that employee turnover can be costly to any company, costing an average of over 20% of an employee’s yearly salary in recruitment and training fees. But the actual cost to a business is not just in the money wasted on hiring new employees.
The loss of productivity, creativity, and innovation that can occur when an employee leaves a company affects the organization’s overall performance as a whole. Establishing a strong company culture will help you retain your current employees by encouraging them to be more involved and invested in their jobs.
How Can a Company's Culture Be Considered Good?
Good company culture is one that employees want to be a part of. It rewards creativity, promotes innovation, and allows employees the freedom to express themselves without fear of being judged by colleagues or superiors. Being encouraged to voice your opinions and collaborate with others on projects will increase engagement and foster a healthy team dynamic. The following are a few ways that employees can gauge the strength of their company culture:
Does the company seem engaged with its employees?
Consider your own experience as an employee and think about how much appreciation you feel for your employer. Does the organization show some love by being involved with employees’ personal and professional lives? Or does it just seem like “business as usual?"
Are you paid fairly? It’s important that the salary you earn is in line with your industry and field of expertise. Not only should you be appropriately compensated for your work, but your employer should also recognize and reward your hard work and commitment to the company. A good employer should value everything you bring to the table: work ethic, creativity, unique skills-everything.
Does a sense of community exist among employees?
Many companies implement social programs to boost employee engagement levels and create a sense of community in the workplace. An essential part of any successful program is that it’s consistent. Participation in such initiatives should be ongoing and effortless for employees to participate.
When an employee shows their work colleagues that they truly value them, even just by saying “thank you" or offering a quick smile and nod of the head, other coworkers become more engaged in their jobs. It’s this level of appreciation that fosters a strong sense of community within an office.
Is your company’s culture unique?
A good company culture encourages and rewards employees for taking risks, making mistakes, and realizing their potential. These types of cultures usually result in unusually high levels of employee satisfaction.
A great example from the retail industry is that of an employee-owned company, where every worker is part owner. These companies, including Publix Super Markets and Quik Trip Inc., have ranked among the best places to work for many years because of their unique focus on providing great benefits to their employees.
Practical Steps for Boosting Company Culture
In order to create a healthy corporate culture that attracts the top talent, you need three things: Trust, Transparency, and Authenticity. These foundational aspects of any successful organization should be at the forefront of your thinking when it comes to crafting your own high-functioning workplace environment.
Here are five steps for fostering these elements within your business model:
1. Be open to change and welcome innovation.
Innovation (or lack of it) is usually what separates a good company from a great one. To foster a culture where employees are constantly growing and learning, you have to be open to change and ready for new ideas.
Because we all do things in our own way, different approaches to tasks can make all the difference in the world. Encourage all employees to approach their work with an open mind and a willingness to learn.
2. Create transparency between bosses and employees.
Open communication goes a long way towards creating trust in the workplace. If your company values honesty and integrity, then it has to practice what it preaches. When you tell your employees that they are free to ask you questions and speak freely about any concerns they have, this helps build rapport and trust.
But it doesn’t stop at the C-level executives. Managers, department heads, and administrative personnel all need to be on the same page as their employees when it comes to transparency of information in the office.
3. Promote adaptability within the workplace.
For a company culture to be as productive as possible, employees have to adapt quickly. When you allow your workers to learn from their mistakes and try new things without fear of reprisal, they’ll feel empowered and motivated to take on more critical challenges.
4. Empower your employees in their jobs.
Tasks are listed, discussed, and delegated. Employees are empowered to complete their assignments as they see fit. However you choose to go about it, empower your employees with the tools and knowledge they need to succeed at doing what they do best for your company.
5. Make it a family-like environment.
Positivity breeds positivity. When your employees feel safe and loved, they’ll be motivated to continue doing good work for your company. When an employee shows their work colleagues that they truly value them, even just by saying “thank you" or offering a quick smile and nod of the head, other coworkers become more engaged in their jobs. It’s this level of appreciation that fosters a strong sense of community within an office.
Unlock the Techniques of Company Culture with Business Coaching
Whether you are a brand new startup or an existing company, company culture is critical – and it can change on a dime. If you find your organization's culture becoming stagnant or suffering from internal conflict, the problem may be on the verge of spinning out of control. One key to boosting your company culture effectively is to work with a business coach who has expertise in company culture.
Why should you hire a business coach?
A business coach can provide a third-party perspective on your company culture and help you identify blind spots that are hindering your employee retention. The past few years have revealed to many business leaders how vital company culture has become and why millennials are now conditioned to seek out employers who practice transparency.
Business coaches can provide the expertise that will help you restructure your organization for success and give you the tools to build a strong business foundation that can support growth.
Are you ready to take your company culture to a healthy, thriving level?
If so, schedule a call to discuss how you can improve and elevate your company culture, retain your best workers, and attract new hires that align with your values and vision. We’re ready to help you put in place the habits today that will unlock a lifetime of success tomorrow.
Contact MDM Enterprises today at 405-919-9990. Michael Morrison and our team of experts are dedicated to helping business owners increase their sales, reduce their costs, and save their marriage by reducing the hours they work "in" their business.