As we’ve noted on our company Facebook page, the word “culture” has been creating some buzz lately. Businesses have been using it to lure in potential candidates by highlighting their company culture during interviews, and some even include it as a job perk on LinkedIn. Almost all companies are claiming to have a remarkable culture nowadays – but is this really the case?
First, let’s define culture as the “personality of a company”. Pretty simple, right? But the major missing element from this definition is that culture is something that develops organically over time – meaning you can’t just think it into existence.
Why Should We Focus on Improving Company Culture?
Adding Stress to Your Employees’ Lives Will Literally Cost You.
According to Gallup, 85% of employees are disengaged or actively disengaged (meaning they put time into their work, but lack the energy). If you’re a Type A personality like me, you’ll find these statistics shocking.
In addition, 60% of employees report being stressed either most or all of the time at work. This can lead to health issues like obesity, high blood pressure, and even a higher risk of heart attack as well as mental health issues like anxiety, depression, and irritability.
While your high-stress work environment may not be something you want to change, you may want to reconsider. The American Psychological Association estimates 550 million workdays are lost each year due to stress on the job – costing companies a whopping $300 billion per year.
Avoiding Employee Turnover Rates
It’s not surprising that employee disengagement and burnout are effects of workplace stress and negative company culture. Ninety-five percent of HR leaders agree, citing employee burnout as the biggest concern for employee retention rate. However, the study also shows that employers aren’t listing it as their #1 priority.
Simple adjustments to workplace lifestyle can save an estimated 20% of the employee’s salary – which is the cost it takes to replace each position.
You’re Waiting for Them to Come to You
What if a simple change could keep your employee from leaving? 70% of employees believe training could help them become more focused on the job and better at managing their time, but 66% have never asked their managers for such training. We should never stop learning, so don’t let your employees stop, too.
Your employees are the roots of your business. If you don’t allow them to grow, neither will your business. As a leader, it should be your goal to teach and learn as much as you possibly can.
If these statistics don’t prove that employee engagement should be your #1 priority, take a look at what a strong company culture fosters below.
What Are the Effects of a Good Company Culture?
These statistics should spell it out for you:
13 companies that have appeared on Fortune’s annual 100 Best Companies to Work For list every year also see higher average annual returns, with cumulative returns as high as 495%.
Companies with strong cultures saw a 4x increase in revenue growth.
Companies with engaged employees outperform those without by 202%.
While you know you can’t motivate every disengaged employee there is, you can certainly eliminate the stressors within the workplace by making adjustments to suit your company’s needs. Fostering a positive culture is the key to your employees’ success, health, and happiness – and you can start now. Not sure where to begin? Check out our article on how to improve your company’s culture.
