Does your company culture matter? It might actually be the most critical part of your business. Find out why below...
While having a positive company culture may seem like a superfluous concern for managers, it can actually be one of the most critical components to your company's success. Here are three ways that cultivating a positive culture can help impact your profits for the better.
1. Increased Team Communication
A recent study by Dale Carnegie found that companies with engaged, enthusiastic teams outperformed others by over 200 percent.
Many companies have found that increasing employee engagement starts with focusing on improving communication. A team that communicates well is more efficient, and more effective communication means projects get done with fewer snafus, increasing overall productivity.
Greg Huber, President of Challenge Discovery here in Richmond says this about fostering team communication: "Most team building activities require teams to communicate in ways that are different and often times with people that they do not normally communicate with on a regular basis. So any team building event can be helpful in the area of communication."
2. Better Employee Retention
Companies with a strong culture have better employee satisfaction and retention rates. A recent study by CareerBuilder found that 46 percent of employees surveyed were looking for a positive work culture, and these same workers may look elsewhere if the current company culture takes a downturn.
From time lost screening and interviewing applicants to resources expended to train new hires, having to replace experienced employees can be a costly endeavor. Companies can expect to spend up to 150 percent of the annual salary to replace mid-level employees.
If you're looking to get the most out of your current employees, be sure to make your company a place they'll want to stay.
Huber adds, "Too often companies think that by just doing team building activities, they have a better chance at attracting and retaining employees. Unfortunately, sometimes this can actually backfire. What attracts and keeps good people is a strong culture and value system that matches the values of the employee. When team building is carefully designed and used to augment the company's culture and reinforce its values, it is usually viewed as adding and having a purpose. The result is the employee taking ownership of keeping the culture alive."
Nate Marcus of PartyRVA says that the cost of retaining employees by bringing them together regularly is much lower than the cost to replace employees. "Team building budgets vary from office to office, and may be from $50 to $85 per employee per quarter. Some companies will bring fun events to their employees, from patio parties to intimate concerts with famous musicians, around once a month."
3. Improved Customer Experience
Your employees are the face of your company, and building a healthy culture driven by strong values often leads to better customer interactions.
A great example of a company putting this concept into action is Zappos, which famously offers new hires $2,000 to quit, a way to easily dismiss employees who aren't a good culture fit.
Zappos also gives employees money to order shoes so they get a sense of the customer experience. By making customer service a pillar of its company culture, Zappos has been able to ensure consistent high-quality customer interactions, breeding happy, lifelong customers.
Better Culture for Better ROI
By improving your company culture, you're investing in one of your most important assets: your employees. When it comes down to it, happy employees lead to happy customers and a better bottom line for your business.