5 Steps to Creating – and Sustaining – a Winning Company Culture

Introduction

What occurs in the workplace is felt by the client.

Satisfied employees are more than just a fashionable phrase on company websites – they lie at the core of a winning company culture. Studies by the University of Warwick indicate that happy workers are 12% more productive than unhappy ones. Furthermore, disaffected and disengaged employees are more likely to create negative experiences for customers.

Conventional office culture is shifting according to what growing research tells us. How should organizations improve their internal culture while also bearing business goals in mind?

5 Steps to Creating a Winning Organizational Culture

Organizational transformation begins with relationships – between employees, leaders and managers.

While compensation plays an important role in workplace satisfaction and thus in building a strong company culture, other, less tangible elements are crucial as well. These elements have come into sharper focus in our post-pandemic world.

Many companies are rewiring the way they do business to attract and retain the best talent. To develop a strong culture in the workplace, here are the strategies companies should consider to support the evolving needs of the workforce.

• • Invest in Effective LeadershipConfidence in leadership quality has nosedived. According to a report by DDI, only 40% of leaders believe that their organization has effective leaders.

    A company without effective leadership is like a ship without a hull. It may stay afloat, but it will not move in the right direction.

    It is essential for business leaders to embody the values and behaviors that are expected from their team. This involves meeting deadlines, displaying a positive attitude, being punctual, and treating employees with respect. Employees are more likely to follow company values when they work with such a leader.

    An excellent leader will motivate, inspire, and drive positive change. A poor one will slow productivity, demoralize, and have employees eyeing the nearest exit. Indeed, according to Gallup[Deloitte has also referenced Gallup, so they seem legit.], effective management is 4 times more important to teams’ well-being and engagement than where they work (that is, hybrid, on-site, or remote).

    Here are the behaviors that good leaders consistently abide by:

    • Demonstrating honesty, approachability & competency
    • Avoiding favoritism
    • Celebrating employees and supporting their career growth
    • Involving team members in decision-making
    • Aligning actions and words

    Investing in leadership is part of creating a winning company culture. Organizations can introduce leadership development programs, identify employees with leadership potential, and support them in reaching their highest potential.

  • Recognize & Respect EmployeesResearch backs up what all of us already know: recognition is crucial to the retention of employees and the profitability of business.

    The Harvard Business Review (HBR) states that employees with managers who are good at recognizing them are over 40% more engaged than those with managers who are not. They also make more effort and are less likely to quit.

    In a good internal culture, employees’ efforts are recognized, their input is sought, and they are cared for as human beings with rich lives outside of the workplace.

  • Encourage Open CommunicationResearch shows that over 80% of employees in the US desire a greater understanding of how decisions are made within their organization.

    To cultivate a workplace environment where everyone feels heard and valued, open communication should be encouraged at all levels.

    Transparency, collaboration, and feedback should form the bedrock of your communication. Your team should be encouraged to seek feedback, ask questions, and engage in constructive dialogue to hone a culture of continuous improvement.

• Consider a Hybrid ModelAfter the Covid-19 pandemic, more companies have started supporting offsite work and responsibilities. This is relevant, since, according to HBR, employees value working from home around the same as an 8% pay increase. Indeed, many of Fortune’s 100 Best Companies afford their employees remote work and flexible hours.

  Supporting a hybrid model may involve:

  • Providing financial support for remote set-ups
  • Introducing flexible working hours for parents
  • Not scheduling meetings before 9 am

  Crucially, to efficiently adopt a hybrid model, businesses need to ensure they implement the appropriate digital transformation efforts. This will involve deploying suitable processes and technologies while also bearing in mind business goals.

• Practice FairnessEmployees who perceive that everyone in their organization is receiving a fair opportunity report having more positive experiences.

  Fairness should be engrained in the culture of a business. It leads to better results, no matter the industry. For example, according to a GPTW study, healthcare companies that offer fair compensation and equitable promotions outperform their peers.

  Note the relevance of such fairness to employees. According to Pew Research, only 33% of employees in the US are satisfied with opportunities for promotion.

  Companies should take the opportunity to nurture a fair environment to limit conflict and encourage productivity. Ultimately, fairness falls on everyone’s shoulders in the workplace – that is, each person must be aware of their role in contributing to a fair environment.

Conclusion

Nurturing a robust organizational culture will require time and effort. However, the rewards of retaining your best employees – and clients – are worth it.

By using the 5 strategies outlined above, you can create a company culture that aligns with your business goals and empowers your team to outpace competition.

As socioeconomic conditions evolve, organizational culture must evolve with them. Even today, with artificial intelligence (AI) and machine learning (ML) transforming processes, we must invest in the engine that powers business – people.