Your Company's Culture Can Impact Your Bottom Line
Your Company’s Culture Can Impact Your Bottom Line: Here’s Why
Your company’s culture is important. Having a disengaged culture within your company can damage your bottom line. In the UK, employee dissatisfaction is reaching unprecedented levels, with startling statistics revealing that nearly 90% of the workforce isn’t happy; almost a third of employees have resigned from their positions due to a negative workplace culture. For business owners, the departure of an employee is more than just a gap in the team – it represents a loss of the time and resources invested in their training, not to mention the additional pressure placed on the remaining staff to compensate for this absence. It is widely acknowledged that a happy workforce is a more productive one. Therefore, enhancing your company's culture is not merely a matter of employee wellbeing; it can also translate into a substantial and beneficial impact on your bottom line.
What is Company Culture?
The impact of a company culture is wide-ranging.
It’s more than the brand of coffee in the staff room, or the trendy bean bags in the foyer. The company culture is more than the mission statement proudly displayed on the wall.
It’s more than the leadership styles of the management team.
A company's culture is its heartbeat. It is rooted in trust, fosters respect, and allows for the opportunity for employees to engage in shared values, cultivating a genuine love for their work.
It should be warm and welcoming, promoting a sense of belonging and inclusion. A happy workforce will have a clear sense of purpose. They will have a view of your vision and business goals whilst being trusted and empowered to get on with their work. Staff are encouraged to learn and upskill.
The detrimental cost of a negative company culture
In a negative workplace environment, the consequences can be severe, leading to things such as:
- Increased employee absenteeism
- High staff turnover
- Diminished staff performance
- Low staff morale
- A damaged business reputation.
A toxic atmosphere in your business means that employees cannot thrive
2023 statistics are indicating how employees are ‘quiet quitting’ - where someone is physically present but not engaged in work. If someone isn’t being recognised or feeling valued for the work they do, then they are turning up to clock in – but simply going through the motions until it is time to leave. This situation will impact output and the quality of work produced.
The reputation of your company’s culture can also impact your business if you are trying to attract top talent as potential recruits will now search online on sites such as Glassdoor for what is being said about your company.
In companies lacking clear communication, a rumour mill takes root. Without support or diversity, and in the culture of presenteeism led by unsympathetic managers who lack accountability, negativity can seep into employees' personal lives, affecting their physical and mental health. These toxic attitudes and behaviours then spread beyond the workplace into people’s personal lives and families. This detrimental effect can create a continuous cycle of negativity, lack of engagement, and poor productivity.
If you are seeing some of the above signs - people quitting, productivity dropping, profits suffering, it might be time to take stock and sense check what is happening within the workforce.
Growth-Oriented Company Culture
A positive, growth-centric culture is characterised by a shared vision, where business model objectives align with management goals. Diversity and inclusion are not just a box-ticking exercise but are actively practised within the company, allowing employees to contribute from various perspectives that fuel innovation and growth.
The role of values and leadership will also impact the company culture, born from a united set of values, exemplified by the behaviours of its leaders and consistently reinforced across the workforce. A simple, clear values statement can set the tone for expected behaviours and practices within your organisation.
A positive growth culture can be conveyed from the very beginning
When a new employee starts, the role needs a clear job description. The induction process is vital for imparting the company's ethos to new employees. It should be characterised by communication that is not only eager and enthusiastic but also genuinely interested in the individual. This approach, coupled with a welcoming atmosphere, should foster active engagement across various departments, as well as provide support from managers and designated 'buddies'. Such an environment is designed to help new employees quickly develop a sense of loyalty and commitment to the company.
Make The Change - Management Style and Impact
People want to succeed. That success extends beyond the profits of business. They like to know that they’re having an impact on what they’re doing and that they’re making changes.
And it all starts at the top.
Having managers with the right skill set in place can boost your bottom line by as much as 33% according to statistics. Effective leadership that nurtures a positive workplace environment through positive, ethical, empathetic behaviours towards others, and always with a high level of accountability can inspire employees, which boosts productivity and profits.
Ensuring that transparent, inclusive behaviours with clear channels of communication are in place that recognise the value of all staff and also encourages feedback will stimulate participation in growth and success.
Sustainable Leadership Practices
Leadership should focus on long-term sustainability, including clear vision, accountability, recognition, effective communication, and emotional empathy.
Certain key elements of leadership are critical. Pace-setting leadership incorporates a long-term sustainable programme that includes:
● Clear vision, purpose, goal, and objectives, conducted with accountability
● Reflection and Recognition
● Communication with clarity
● Meaningful and motivating conversations
● Emotional connections made with empathy
Points To Consider Within Your Management Team:
● Do your Managers have a continuous dialogue with individuals and their teams?
● Do they invite inclusive feedback on practices and processes to stimulate improvements and creativity in team effectiveness?
● Do they model open and transparent, positive behaviours?
● Do they recognise their team’s successes, treat people with empathy and compassion and actively encourage individual learning and development?
● Are they concerned for their team’s and their own well-being?
The Power of Communication in Culture
Clear, empathetic communication is essential in business. Not just communication from the top managers down to the employees, but also from the bottom upwards and across the organisation.
Positive staff connections to your business are reinforced through collaboration and diverse communication channels, such as:
● 1-1s
● teams
● owner/managing director led company meetings
● manager led departmental meetings
● cross skilled/company-wide meetings
● working groups
● project/initiative groups
Transparent, inclusive behaviour with clear communication channels encourages feedback and stimulates participation in the company’s growth.
Can’t I Just Pay Them More Instead of all This Culture Nonsense?
In short, paying someone extra money isn’t the simple answer.
In today’s dynamic business landscape, having flexible working options, recognition, learning opportunities, and clear progression paths are what truly satisfy and retain staff.
Conclusion
Creating a positive company culture is not just a strategy; it's a mindset. The right workplace environment can give your business a competitive advantage.
Such culture evolves naturally from the ethos and attitudes of its leadership. By modelling behaviours centred around compassion, accountability, and responsibility, businesses can create a safe environment for honest feedback and genuine engagement. With improved staff morale and lower staff turnover, your employees will deliver a better standard of customer service. The company's success can extend beyond profits - it can become a place where employees seek out a place where they know that they can thrive.
Investing in a positive culture is not just beneficial; it's essential for sustainable growth and success.
