Your corporate culture impacts everything from hiring to retention to the employee experience. Here's why.
There are few things as important to a business as a good, positive company culture. It impacts everything from hiring the best talent to keeping those star employees happy, to your employer brand and even your bottom line. Research shows companies with a killer culture are stronger and more profitable.
Here are some stats about company culture to chew on:
According to Deloitte research, 94% of executives and 88% of employees believe company culture is important to the overall success of the business, with 82% saying it's a competitive advantage.
Companies appearing on Fortune's annual 100 Best Companies to Work For a list see higher annual returns.
Glassdoor reports that companies named a Best Place to Work get a .74% jump in their stock prices.
According to SHRM, 74% of HR professionals say a company's reputation, or employer brand is a critical factor in recruiting.
If you want to boil it down to one concept that encapsulates company culture, it's "employee experience." That means, simply, what it's like to work for your company day after day. How well employees like their jobs. How engaged they are. It may be a simple concept, but it's not easy to achieve. That's why so many companies get it wrong.
Here are four crucial areas that are impacted by and contribute to company culture.
Recruiting and hiring
Oh, Glassdoor. You have permanently changed job seeking, recruiting and hiring as we know it. By now, most people know Glassdoor is the place where employees can post anonymous reviews of what it's really like to work at your company. They can rate your company as a whole, and the CEO. Make no mistake, job seekers, even top execs, are looking at those Glassdoor ratings before saying "yes" to an interview. If your current employees aren't happy and engaged, if you have had some less-than-stellar, even scathing, Glassdoor reviews, the fact is, top talent simply won't come knocking. In this job market, there are too many other opportunities to choose from.
Retention
You’ve found the top talent. Great! Now how do you retain and engage them? The answer is simple. Invest in your employees, create a sense of belonging and provide clear paths for advancement. Executives and managers alike can create a culture that fosters transformational thinking and promotes growth. It all starts with an understanding of culture and of human connections.
Invest in your employees. This is more than just a pool table in the break room. It's focusing on both personal and professional growth. Work/life balance has become extremely important for employees. It boosts productivity, creates creativity and combats burning out/employee turnover. Investing in your employees through culture, training and benefits can produce a higher retention rate and faster growth.
Create a sense of belonging. It's crucial to retention. Having employees feel like they have stake in the game and will not easily be replaced creates trust and provides responsibility. Aligning business practices with core values and a sense of belonging can push your business toward a better culture. Employees who feel understood and appreciated are more productive and work harder for customers and clients.
Provide clear paths for advancement. Demonstrating and communicating to internal employees that their success and longevity is important to the company as a whole will provide a want and need to contribute to the company’s short- and long-term goals.
Employee experience
Author Jacob Morgan defines the term "employee experience" as the combination of a company's cultural, physical, and technological environments. As the subtitle of one of his books on the subject, "The Employee Experience Advantage," says, it's about giving employees the workplaces they want, the tools they need to do their jobs and a culture they can celebrate. It's not an easy task, but one that's vital to your company's bottom line. Here's why:
Happy employees are more productive and engaged at work. According to Gallup, companies that have engaged employees outperform companies that don't by 147% in earnings.
Glassdoor reports disengaged employees, people who are just phoning it in, cost U.S. businesses between $450 billion and $550 billion per year.
65% of employees feel they do not have a strong work culture or positive employee experience.
Employer brand
Employer brand is a big buzzword these days, but many people get the definition wrong. It has nothing to do with the products you put out. It's your company's reputation. If you focus on the type of culture and brand you want and find employees to fit this brand and culture, you will have a competitive edge. What type of brand are you aiming for? Do your core values and company culture match your brand image? How does it set you apart? Customer loyalty comes directly from the brand experience. If company culture aligns with brand image, you will see the benefits.
Culture is the way you think, act, and interact.
Company culture will always be important for growing, transformational and start-up companies. Here at Andcor, we are committed to finding the best fit for your company's culture. To discuss your perfect fit, contact us here.