Summary: Company culture not only defines how the public perceives working conditions, but also how productive employees are during their workday. Companies like Google, Apple, Facebook, and other top tech companies have soaked up substantial amounts of high-skill talent. Asking questions such as: “How do they retain them?”, “How do they keep them productive?”, “How do they keep them dialed-in on their targets or quotas?” can help your company get on the path to filling up with similar expertise.
Company culture shapes how all businesses retain employees, keep them on-target, and keep them productive. If culture is poor, employees are substantially more likely to leave, take more time off, produce lower quality products, and ultimately cost the company thousands of dollars.
Culture Impacts Your Margins
When searching for high-performing teams with that certain ‘X-factor’, leaders often forget that the secret sauce isn’t necessarily a set or collection of personal traits, but often the byproduct of shared experience. Company culture is centered around them, and when those experiences have positive outcomes, people keep coming back for more.
Businesses who fail to position themselves with a positive company culture, however, experience loss and waste in both time paid and resources spent on training. Culture is a vital part of the world’s highest-earning tech companies, but it is also a leading factor in companies losing employees. A study from a group of over 200,000 exit interviews by the Society for Human Resource Management showed that up to 77 percent of employees could have been retained.
What Does Poor Culture Cost Your Company?
Every time a business replaces a salaried employee, it can cost around six to nine months’ salary on average. For a manager making $60,000 a year, that’s $30,000 to $45,000 in recruiting and training expenses. When it comes to replacing a $100,000 per year salaried executive, companies may pay as much as $255,000, based on information from the Center For America Progress.
A University of Warwick study found that not only are happy employees 12 percent more productive, dissatisfied employees are roughly ten percent less productive; in all, a 22 percent difference in productivity.
Tips For Building And Maintaining Company Culture
A blind survey of LinkedIn employees revealed that it’s a leader in employee satisfaction—an astonishing 83 percent of LinkedIn employees are happy at their job. The national average for US employee satisfaction is roughly 30 percent. What is the takeaway for your business?
1. Offer Remote Work (Where & When Available)
Remote work enables employees and contractors to spend time with their loved ones, alone, or in whatever environment suits their ideal productivity. Working from home has proven to be consistently effective for companies such as SAP, CVS Health and Salesforce.
2. Establish A Company Ritual
Rituals are based on simple concepts which have persisted through history by bringing people together and helping them to develop common and consistent experiences. They are also used by leading companies to build happiness and productivity into each day. For example, celebrate the successful completion of a project by gathering your team for cake in the lunchroom or drinks at a specific lounge.
3. Set Your Mission, Rally Employees Around It
Gallup listed connection between the employee and company mission as one of their 12 key employee engagement indicators. Making sure the mission/purpose of your company makes your employees feel their job is important is crucial to developing employee happiness, retention and overall employee productivity.
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