The idea of corporate culture has become a trite, almost banal, phrase. However, that detracts from the facts: Company culture has grown in importance and is integral to developing a successful organization. Correcting your corporate culture before it's too late can save your company time and money and help you to retain the best talent. Here are the six benefits for fixing company culture.
High employee turnover can be costly for companies and cost them more than lost time: It can cause burnout, cause valuable employees to leave (i.e., increase turnover) and, worst of all, can cost companies thousands of dollars in lost revenue in recruiting and hiring someone new. Strong culture within a company attracts a higher caliber of talent who wants to stay there. Benefits of a strong company culture in terms of retention include lower turnover, fewer new hires to train and better cohesion among your team.
An essential part of a long-lasting workforce is to nurture the talent that you do have. With millennials driving the increase in the workplace, if you're not attracting, engaging and nurturing that generation, your company's growth will stagnate, and it will eventually meet a talent shortage. There will come a time when your older generation of workers ages out of the workplace, and if you haven't nurtured raw talent into becoming the go-to point person you need to depend on, you will be left without any rock stars. The silver lining: Millennials want a robust and stable company culture more than almost anything else when deciding whom to work for, so there's time to fix broken cultures before it's too late.
Build company loyalty
According to a 2017 employee engagement survey, 51% of U.S. workers are not engaged. Disengaged workers cost companies upward of $450 billion each year and 75% of all employee turnover is preventable. That means if you build a quality company culture, you will have a more loyal and engaged workforce.
Foster employee identity
Your company culture not only defines how the general public will see you, but it can also have a direct correlation to how your employees identify themselves within the organization. What your company culture values, your individual employees will, too, and establishing a culture helps to maintain and set the direction of your workers.
Cultivate brand ambassadors
If you treat your employees well and they enjoy their jobs and working for the company, then they will transform into more than just workers - they will become brand ambassadors. They will champion your brand to their friends, acquaintances and family. Additionally, 53 percent of employees who were referred by existing employees were very satisfied with their jobs - which means not only will your workforce want to work there, but they will also want their friends to work for the same company.
If people are leaving your company by the droves, then something is wrong. Your company will spend thousands in recruiting, training and paying out new employees over and over again. The more undue burden that you place on existing employees, the more likely they will leave for a better place to work. Some ways to reduce attrition are:
- Provide skills development.
- Increase employee-manager communication.
- Give more frequent promotions or value employee progress.
- Evaluate current management styles and perhaps replace upper management if employees are leaving due to a specific person's style.
- Create a more harmonious work-life balance for your employees.
The first step in correcting your company culture is to recognize if your company isn't doing it right. The next step should be to talk to professionals who can help you get it back on course. Speak with someone who can help your company succeed today.