Culture is one of those things that you have got, whether you intentionally work on it or not!
It both shapes, and is shaped by, the attitude of you and your staff, your values, your customers’ perceptions. To an extent, it becomes self-fulfilling for good or bad.
If your company culture is working for you, it will drive productivity and create a satisfying place to work for like-minded employees. If it is not, it may be the reason you have staff issues, customer satisfaction problems and a lethargic or unhappy workplace.
The McKinsey Organisational Health Index found companies with top quartile cultures delivered returns 200% higher than bottom quartile firms, and 60% higher than the median.
Let’s explore the reasons why in more detail.
Attracting the best talent, keeping the best talent
A desirable company culture will shine through when recruiting. Salaries, job spec, location… these are all matters of fact, and may be similar for equivalent roles at other companies.
Your company culture, on the other hand, will be what candidates uncover when they do their own independent research on employer review sites like Glassdoor, or what they hear on the grapevine. They’ll pick up vibes when they come in for interview, and if they join they will soon know everything.
A strong company culture will be a point of difference for high calibre candidates to choose you, and moreover, candidates who align with your culture.
The flipside of a weaker culture is that you are left with what remains after the top candidates have gone to your competitors. Your workforce may lack that common sense of purpose and you may face issues of churn and re-recruitment costs because employees do not want to stay; or are not up to the job and are therefore dismissed by you.
Flexibility and adaptability
The Internet. Social media. Sustainability. AI. These are just four of the huge changes that have come in the last quarter of a century. Businesses are always having to respond to evolving markets and other pressures.
All businesses do something, perform some service; but your culture is the “how” and “why” you do it. It acts as the glue which will hold your business together when you have to respond to change, or instigate it! Doing so with a united workforce will help you find the best way forwards and with the least friction.
Encouraging innovation, supporting growth
A healthy culture is typically open, collaborative and supportive. It makes it easy for information to travel, decisions to be made soundly and for there to be broad consensus – everyone pulling in the same direction.
These are the conditions for forward momentum, optimising your processes, letting new ideas flourish and learning from mistakes. Ideal for business growth and being innovative.
Employee engagement
Employee engagement is part of the productivity story and part of having a pleasant workplace. Your culture, if designed, might be any of: dynamic, no-nonsense, trusting, flexible, and so on. The point is that the people you employ buy into it and bring the best version of themselves into work every day.
Avoiding the pitfalls
We have all seen the headlines “So-and-so had a toxic culture which contributed to…”. Sexual harassment, bullying and discrimination are all easier to take hold where there is not a positive company culture. When linked with company values and mission it provides a clear North Star for acceptable behaviour, and higher standards by which people hold themselves and others to account.
All of these pitfalls, as well as being morally wrong, are bad for business, forcing you to divert money and resources to firefight. Far better to be proactive and invest those same resources into nurturing a winning company culture that comes with all the above benefits we have covered!
Need help?
Nurturing company culture is an exciting piece of work for any business, full of optimism and upside. If you would like to talk to professionals about your options, please get in touch with us today.
