The below content was originally published on the Insperity blog, a great source of information for business and HR best practices.
At first glance, some may dismiss company culture as touchy-feely stuff. But when you dig deeper, you’ll find that company culture is actually the driving force for business success. It shouldn’t just be left to happenstance – it calls for thoughtful, deliberate action.
What is company culture?
Company culture is the sum total of your organization’s:
- Core values and beliefs.
- Practices and procedures.
- Rules and policies.
- Programs and initiatives.
- Priorities.
- Expectations.
- Ethics.
- Working and leadership styles.
- Employee attitudes and behaviors.
- Social order.
- Customer service approach.
- Community service approach.
There’s hardly an aspect of your business or a part of each employee’s day that culture doesn’t permeate.
Culture is all the things that make your company what it is and help you deliver on your promise to customers, partners and team members.
You can also think of it this way – your culture is your organization’s unique identity and personality. When people think of your organization, certain attributes may automatically come to mind.
Why company culture matters
Culture impacts the:
- Morale, engagement and satisfaction of your workforce (whether your people feel like they’re in an environment in which they can thrive).
- Cohesion and harmony among employees.
- Leadership style in your organization, which has an effect on the relationships between managers and employees.
- Willingness of your organization to embrace change and evolve and adapt to new circumstances.
- Innovation and creativity of your workplace.
In turn, all of these things influence:
- The quality of employees’ work and their productivity.
- Employee retention and turnover.
- The ability of your organization to operate smoothly with minimal disruptions.
- The reputation of your organization.
- The competitiveness of your organization in attracting and recruiting talent.
- Whether your organization grows, increases revenue and maintains profitability.
The bottom line: companies with a great culture have fewer people-related problems, perform better and are generally more successful.
Increasingly, human resources (HR) professionals and company leaders understand that culture is the top recruiting and retention tool any organization has at its disposal, especially in a highly competitive talent marketplace that makes it harder to find top-tier talent and keep them for the long term.
As employees evaluate their options, culture is the big differentiator when all other things—like salary and benefits—are equal.
After all, everyone wants to feel happy, fulfilled, included, appreciated and valued in the place where they spend most of their time: at work. It’s human nature.
What company culture looks like in action
Company culture is something that you can actually observe in real time. Walk in the door of any workplace and watch for how:
- Employees go about their day to day and get their work done.
- Employees speak with customers.
- Colleagues interact with each other.
- Managers and employees interact.
- The company and individual employees respond to any challenge, from a minor hiccup to a major crisis.
- The company expresses an openness to change and new ideas – even if it runs counter to long-held beliefs.
- People speak up and share their ideas or feedback willingly – if at all.
- Employees talk about the company – especially when they don’t think an authority figure is listening.
You’ll witness a dynamic that’s either:
- Uplifting, inspiring and functional.
- Toxic, demoralizing and dysfunctional.
- Somewhere in between.
Must-have workplace qualities for a great culture that aligns with current employee expectations
So, what attributes do you need to focus on as you ponder your own company culture? What do most employees today want?
1. Prioritization of people
The most successful cultures put people at the forefront. We call this a people-first culture.
This means that your organization understands that people are the heart of your company and are the foundation for any success you achieve.
Knowing this, your company should do everything it can to:
- Show that you care about them as human beings – beyond the value they bring to the business through their knowledge, skills and experience.
- Support and empower your people to do their best work and accomplish their goals – both at the company level and the individual level.
- Preserve their wellbeing so they can bring their best selves to work.
- Express gratitude for their efforts.
As examples, a people-first culture is reflected in:
- Competitive compensation.
- Comprehensive, high-quality benefits.
- Promotion of workplace flexibility and work-life balance, including remote/hybrid work, flexible scheduling and accommodation of personal needs and obligations.
- Commitment to continuous learning, training, and development.
- Rewards and recognition.
- Wellness programs and employee assistance programs.
- Shift toward a “human leader” style of management.
2. Psychological safety and sense of belonging
It’s imperative that each employee feels:
- Included within their team.
- Confident enough to be their authentic self at work and accepted for who they are.
- Competent to carry out their job responsibilities.
- Trusted to do their work autonomously, without excessive oversight.
- Comfortable using their voice to ask questions, share ideas, disagree or offer concerns, without fear of intimidation, retaliation or humiliation from their manager and peers.
- Able to engage in healthy debate aimed at discovering an optimal solution.
- Secure enough to sometimes take certain risks in their work to accomplish lofty goals – even though taking risks means sometimes they will get it wrong. Mistakes shouldn’t be viewed as failures, but reframed as opportunities for growth and development.
- Safe enough to talk to managers about personal challenges or request help.
3. Connectedness and collaboration
Employees should feel that they are on a team, with everyone:
- Supporting and helping each other.
- Working toward shared goals.
- In pursuit of a larger purpose.
4. Transparency
Secrets, gossip and exclusion are the drivers of a toxic workplace.
A transparent workplace values honesty and open, timely communication with employees about matters relevant to them and their roles. Your workplace should prize transparency because it fosters trust and integrity and bolsters feelings of respect, inclusion and connectedness within employees.
Additionally, transparency can level the playing field and put everyone on the same equal footing.
5. Respect for others
A healthy culture prioritizes treating others with respect. Nothing will hurt morale and retention faster than an environment in which people feel constantly belittled. Respect in action can be big or small and look like:
- Demonstrating basic courtesy toward others.
- Asking others for their opinion or feedback.
- Listening to and championing the ideas of others.
- Using everyone’s time wisely.
- Addressing any issues with those involved and not anyone else.
6. Trust
Employees need to feel safe with each other in sharing ideas and exploring new ways of working and accomplishing tasks – and know that others are there to support them. In a healthy culture, people can rely on each other without fear of reprisal or ridicule.
Trust is also an essential component in the relationship between managers and employees. For example, trust enables:
- Delegation of more responsibilities, which boosts employee confidence and allows them to gain the experience necessary to grow in their careers.
- Granting employees the greater autonomy they crave.
- The flourishing of flexible workplaces.
7. Openness to change
Nothing stays the same forever. The conditions surrounding businesses are always in flux, whether it’s the passage of a new law, the introduction of a game-changing technology, or a market shift.
Furthermore, companies themselves change over time as they grow. What your company once was may not be what your company is about today.
Companies can’t be so beholden to outdated practices or fearful of change that it holds them back, causes business to suffer or repels employees. Instead, companies that seek out and embrace new ideas are better poised to take advantage of lucrative opportunities.
They can also adapt more nimbly in response to unexpected changes that could otherwise threaten their business. As part of a culture that embraces change, employees should be imbued with a mindset of resilience to help them cope and adapt well even when changes are undesirable at first.
8. Consistency and fairness
Everyone should be treated the same and be subject to the same policies, whether they’re senior leadership or interns. Toxicity starts when people sense favoritism, discrimination or feel like there’s a special class of employees who don’t have to play by the same rules.
How to get started establishing your company culture
Here are the steps you can follow to achieve a great company culture at your business.
1. Lay the groundwork
It all begins by defining what your company stands for. The cornerstones of your company are:
Mission: Your mission statement tells the world – your employees, customers, vendors and everyone else – why you’re in business.
Vision: Your vision statement describes your company’s future aspirations in a way that motivates and resonates emotionally.
Values: Your core company values tell the world what you believe and how your employees will behave.
Employee value proposition: This explains to employees why they should want to work for your company. What’s in it for them? What makes your organization unique and appealing to its people?
These things influence every decision and action taken by your company.
Especially when your company is under pressure and facing challenges, they act as your guidepost and keep you on track.
2. Take the temperature
Here’s the thing: you already have a culture, whether you realize it or not. The question is, how do employees feel about it? Do they feel your culture is positive or negative?
Smart leaders understand that if they don’t evaluate how their workforce perceives their culture, they’re already behind their competitors and missing out on opportunities and talent.
Before you make big decisions or change anything, be sure to ask for your employees’ input and feedback. After all, they have to live with the results.
Your employees are a great resource in finding out where you’re lagging behind in the company culture department and identify opportunities for meaningful improvement.
You can do this by:
- Talking to employees one on one.
- Issuing climate surveys (preferably anonymous and administered by a third party to get the most honest answers and highest participation rate).
- Conducting townhalls or focus groups.
Some sample questions and topics covered in a climate survey:
- Is your opinion valued?
- How many times in the past three months has your supervisor recognized you for something done well?
- Do you have the resources and tools you need to do your job?
- Do you feel like your manager listens to you?
- Do you feel like your benefits are competitive?
- Are you satisfied in your job?
- What change would you like to see in your workplace?
How many employees participate in the survey can be telling. If there is a lot of distrust in your organization, the participation rate among employees is going to be pretty low. That’s a red flag.
If you ask for employee input, commit to doing something with the results. Either implement some suggestions or communicate why you’re unable to take certain actions. If your employees offer feedback and feel it’s ignored, it will underscore any reason they may have for being disengaged.
Employee feedback can be eye-opening and affirming. What you thought would be a marginal issue may rank higher for your employees – and what they find compelling may not have registered high on your meter.
This isn’t a one-time exercise either. Maintain an open-door policy and encourage ongoing feedback. If your culture is healthy, people will come to you with concerns or suggestions. Silence is another red flag.
3. Get leadership on board
Be sure that your major stakeholders, including senior leadership, support the type of culture you want to implement and are willing to lead by example and enforce the culture.
This is because everything, including culture, starts at the top of your organization. To get buy-in from your entire population of employees, the values and behaviors you want them to adopt must be modeled by leadership. Every day, your leadership needs to walk the walk and champion the culture you want everyone else to embody.
How your management team acts is the litmus test for employees. You don’t want your employees to be able to say: “Well, they say it. But they don’t do it.” In that scenario, they’ll get the impression that everything you say about culture is just lip service.
4. Hire for cultural fit
It’s easier to implement a culture if your employees are already naturally inclined to follow it.
Fill the ranks of your workforce with people who are a strong cultural fit. This means that they align with your organization’s mission, vision, values and professional ethics, and have a similar outlook on the company’s trajectory.
However, this doesn’t mean that everyone has to think and act exactly the same. To allow for enhancements to your organization, also see if new hires bring something new to the table that’s currently missing. This could be a fresh perspective, new experience or a different approach to problem solving.
5. Live your culture every day
This gets back to the discussion of consistency. Everyone, at all organizational levels, must adhere to the company culture for it to be accepted, felt and effective.
- Communicate regularly about your culture. Culture is a living element, not just written ideals that live only in a handbook or on a poster.
- Reference your culture in job postings and throughout the recruiting process.
- Emphasize your culture from day one of each employee’s tenure.
- Incorporate culture into employee recognition and performance evaluations.
- Lean on culture to handle interpersonal conflict and other challenges.
- Knowing that culture is dynamic, revisit it regularly and refresh it as needed, in response to evolving internal and external conditions.
6. Maintain culture
Your culture will, ideally, position your company for growth.
But as your company grows, don’t neglect your culture. Have a plan in place for how you’ll maintain your culture and overcome common issues such as:
- Rushed hiring process to scale quickly.
- Increased workload and stress on existing employees.
- Infrastructure failures in the face of larger volumes and additional complexity.
- Change resistance.
- Unclear responsibilities or expectations.
Remember – lean on your culture to guide your organization through challenges and times of transition.
Summing it all up
Your company culture isn’t a minor feel-good initiative that you think about only to check a box or be trendy – it’s vitally important to the engagement, satisfaction and productivity of your people and the success of your organization as a whole. Your culture has the biggest impact on your employee experience and is your strongest differentiator in a competitive talent landscape. To get started, focus on the workplace qualities that we’ve highlighted in this discussion and follow the steps we outlined.