BUILDING BLOCKS FOR SUCCESS: HOW AND WHY COMPANY CULTURE SHOULD BE DEFINED

A strong work culture typically doesn’t happen organically. Leaders must be deliberate and consistent when planning how to define and build a more positive culture. A company’s organizational culture is one of the key defining factors in its identity and ongoing success. Often, leaders may not realize that their workplace culture is a deliberate and conscious decision which is guided by company values, goals, and individual employees.

A great culture is also good for business. 47% of companies that have successful company cultures report revenue increases over the last year, compared to just 9% of companies with less successful cultures reporting revenue increases.

WHY LEADERSHIP NEEDS TO DEFINE COMPANY CULTURE

The initial step in fostering a positive organizational culture is for leadership to make a strategic decision. Culture left to chance or organic evolution rarely becomes successful. Leaders must carefully define the values, beliefs, and behaviors that reflect the essence of their organization.

This deliberate approach lays the foundation for a workplace where employees can thrive, collaboration can flourish and the organization can achieve its goals. Otherwise, all of these areas may stall.

A toxic culture can have significant effects on an organization such as low employee morale, decreased productivity, higher turnover rates, poor reputation and even legal issues. The impacts reverberate beyond the internal operations of the company, affecting the brand’s image and customer satisfaction.

Recognizing the signs of a poor culture is crucial for leaders to address issues promptly to prevent long-term damage. Once they address the issues, it’s time to implement strategies to course-correct.

STRATEGIES FOR DEFINING AND BUILDING A POSITIVE CULTURE

Employees who have worked for a great company know the signs of a positive work culture, especially when compared to an unsatisfactory one they’ve experienced. Workplaces with positive cultures prioritize employees, including their feedback and career goals. They compile benefits that employees need and want. Teams work together well because everyone has a sense of purpose, and they know their place within the overall organization.

Creating a positive culture requires a multifaceted approach. Consider these key strategies for improving workplace culture.

1. Identify Core Values

Strong workplaces are comprised of employees who understand a company’s vision and support its mission. The business’s purpose should be clear and frequently communicated.

Employees must also have their own senses of purpose, which is important for engagement and job satisfaction. According to Gallup’s recent “State of the Global Workplace” report, engagement impacts employee stress at work 3.8 times as much as work location. Engagement matters, and emphasizing core values helps companies improve rates.

2. Promote Open Communication

Today’s employees feel strongly about transparency. They want to know what the company’s doing, but also how they are performing and where they stand. This requires regular feedback, ideally one-on-one, where employees can understand how to improve, receive support and give their own feedback about the workplace.

Employees want the company they work for, and their manager, to be transparent. 24% of employees say they would consider leaving their jobs if their managers don’t provide enough feedback.

3. Provide Professional Development Opportunities

Many top performers won’t be satisfied or engaged at work if they don’t continually grow. Companies should consider the ongoing need for employees to educate themselves so they can meet their professional and career goals.

Leaders can provide ample professional development opportunities. They can sponsor employees to attend conferences, bring in experts to give trainings and start a tuition reimbursement program. These steps show employees that leaders value their continuous development.

4. Consider COVID-19 And Remote Work Impacts To Culture

The COVID-19 pandemic brought unprecedented challenges to the business world, particularly to organizational culture. Remote work became the norm, leading to concerns about the emergence of siloed cultures and the feeling of exclusion among remote workers. Addressing these challenges requires innovative solutions that bridge the gap between physical and virtual workspaces.

Leaders can implement initiatives that foster a sense of belonging and connectivity among remote workers. Virtual team-building activities, and regular use of communication channels and digital collaboration tools are essential for maintaining a positive culture in a remote work environment.

5. Hire And Dismiss According To Culture

Hiring individuals who align with the organization’s culture is essential for long-term success. It’s not just about skills – cultural fit should be a significant factor in the hiring process. Bring current team members to interviews, and let them ask questions about a candidate’s ideal workplace. Ensure the hire will fit in well and that the role is right for them professionally.

Similarly, addressing cultural misalignments through the termination process is crucial to maintaining a cohesive and positive work environment. Firing someone is no easy task, but sometimes letting someone go is the best way to ensure both parties are getting their needs met. The most important point is to make sure everyone on the team aligns with the organization’s core values.

WHERE DO PEOS FIT INTO CLIENT COMPANY CULTURE?

PEOs play a pivotal role in shaping the HR landscape for their client companies worksite employees. Understanding a client’s culture helps PEOs align HR practices for a seamless integration of services, contributing to overall organizational success. PEOs that prioritize cultural alignment can positively impact employee engagement, retention, and client satisfaction.

By defining culture and being proactive in establishing a positive workplace, organizations can attract and retain top talent, foster innovation and ultimately drive growth. PEOs must acknowledge and value company culture as a commitment to creating thriving, collaborative workplaces.

KEY TAKEAWAYS:

Leadership’s role in company culture: Defining culture and core values helps employees succeed.

Strategies for a positive culture: Identify core values, promote open communication, provide professional development opportunities, consider pandemic impacts on culture, hire and dismiss according to culture.