Culture can be difficult to label, but it’s generally thought of as all the traits which create the “personality” of your company.
Few companies take the time to create a company culture statement or define what type of personality they’d like their organization to have, but rest assured, all companies have one. It can be seen in the thoughtful manner in which employees fill out surveys, knowing that what they say will be taken to heart. It’s felt in the rush of excitement at corporate kickoffs. It’s heard in hushed tones as employees whisper about a new policy or team member who left the fold.
But, what exactly is your culture saying about your company? Naturally, it can speak volumes about happiness and engagement of employees. What you might not be aware of, however, is that it can also be a huge predictor of profitability.
Your Culture May Say Your Employees are Happy… Or Not
Many people believe job contentment rests heavily upon salary, but countless studies conclude happiness has more to do with cultural traits. For example, a study published by Monster mentions a feeling of accomplishment, positive reinforcement, good coworking relationships, autonomy, and pride for the organization. Research by the National Bureau of Economic Research points more toward having a partnership-like relationship with one’s supervisor.
Your Culture May Say Your Employees are Engaged… Or Not
Many companies send out surveys with questions like, “Do you enjoy coming to work?” and “Is it easy to become absorbed in your job?” These are key indicators of employee engagement, but the trouble is, few companies understand what cultivates engagement. Research published by the Ivey Business Journal breaks it down to 10 Cs. Each involves a cultural trait and many of the Cs overlap with happiness factors. There’s Connect, which suggests leaders should connect with employees to show they’re valued, as well as factors like Congratulate, Contribute, and Control.
Your Culture May Say You’re Profitable… Or Not
Clearly, what employees want more than anything else is to have a positive environment in which they feel they can contribute, have some degree of autonomy, and to be recognized for their contributions.
Camaraderie and friendships at work can boost job satisfaction by 50% (HBR)
Happy employees are up to 20% more productive than unhappy employees (SMF).
Companies in the top quarter for ethnic and racial diversity, which cultivates a sense of belonging, are 25% more likely to have returns above industry medians (McKinsey).
Companies in the top quarter for gender diversity are 15% more likely to have returns above industry medians (McKinsey).
Shift Your Company Culture
If you aren’t measuring employee happiness and engagement and cultivating a positive company culture, chances are your employees are neither happy nor engaged. We can help you change that. Contact the HR Source for a complimentary consultation.