Company culture defines the environment of your workplace. A healthy corporate culture is an important differentiator that benefits your businesses bottom line. Research has shown that companies with strong cultures saw a 4x increase in revenue growth.
Having a good company culture is also vital to retaining top talent. In fact, 58% of people have left a job or would consider leaving, due to poor company culture.
Your company culture is part of your organisation's identity, so it's important to get it right. According to a recent survey by Deloitte only 12% of executives believe their companies are driving the 'right culture.' How can you tell if your company has the right kind of culture? Here are some of the signs to look out for:
Signs of a strong company culture
Low Employee Turnover
A company's culture relates to the values and behaviours that impact the 'social and psychological environment of a business.' If these values and behaviours are empowering and positively viewed by employees, it's no surprise that companies with a strong company culture have lower retention rates.
A good company culture will also attract great new talent, receive strong job applications and strengthen your overall employer brand. In short good people want to work for good people.
If you find you're consistently hiring for the same positions across your company this could be due to poor management and bad company culture. The first step at solving this issue is identifying the problem, you can then work to create a more positive culture from the top down.
A Can-Do Attitude Across the Business
This one is easy to identify. Simply walk around the office. If you hear happy voices and upbeat chatter, it's a good sign. This shows employees are comfortable bringing their full selves to work and fosters a positive attitude, with research showing happy employees are 12% more productive at work.
There should be no office politics and individuals and teams should be actively encouraged to collaborate. This can be facilitated in many ways including regular face to face events, inviting collaboration spaces and initiatives that celebrate cross-functional teamwork.
High Levels of Trust
If you have a strong company culture you most likely trust your staff and they know it. Research shows that when employees feel trusted, they are more likely to show responsibility to their company and their customers.
Give your employees trust and they will trust you back. Good ways to do this are by having clear goals for all employees, and transparent policies in place for benefits such as working from home.
Connected to all the above is one of our own Core Values, effective communication. A company with a strong company culture will have clear ideas of what the business goals are, how their work aligns with this and the bigger picture for the future.
Authentic mission statements, strategy reports and open communication can all facilitate this. Employees should also feel comfortable enough to provide ideas and feedback regardless of age, gender, culture or ethnicity. Everyone should feel included and be part of the bigger picture.
Overall a good company culture is more important than ever, and essential if you want to attract, retain and engage top talent. If you're struggling with your own company culture or would like to discuss how we can help your business get in touch tobook a free consultation.