10 Ways to Create a Great Company Culture
Are you looking for ways to create a dynamic and prolific company culture? Do you want your employees to feel valued, motivated, and happy?
Company culture plays a huge role in determining the success of corporations and businesses. Creating a good company culture is essential to attract and retaining the best talent. It will stimulate a strong, cohesive team that can weather challenges and emerge stronger.
Building a good company culture can be difficult, but given how companies like Wipro and Apple have transformed by fostering a great company culture, it's safe to say that your efforts will be rewarded in manifolds. A strong company culture can improve employee retention, boost morale, and increase productivity.
So, let's get the ball rolling and understand the concept and importance of company culture and the various ideas surrounding it.
Corporate culture is the only sustainable competitive advantage that is completely witin the control of the entrepreneur
– David Cunnings, Co-Founder, Pardot
What is Company Culture?
A company's culture is the personality of the organization. It is a set of values, beliefs, behaviors, customs, and attitudes that sums up the company's identity. It makes the company unique and propels your organization to success.
Unfortunately, company culture is also the reason why so many businesses flounder. Every organization has its idiosyncratic culture; some are encouraging and supportive, while others are toxic and hostile.
Types of Company Cultures
If you think culture can be only good or bad, you may be surprised at the categorizations. According to the competing values framework, there are 4 prevailing company cultures.
1. Clan Culture
A culture where participation, teamwork, and consensus are valued above everything else. This type of culture is quite favorable as the employees are bound to each other sentimentally. Here collaboration and equality take center stage.
A suitable example of companies displaying clan culture is Google & Zappos.
2. Adhocracy Culture
Companies following adhocracy culture follows the principle of ‘move fast and break things.’
This type of culture pushes employees to take risks and pursue ideas that are innovative and out of the box. This results in a lot of brainstorming, innovation, and collaboration.
A suitable example is Apple, where creativity and innovation are at its finest.
3. Market Culture
It is prevailing in companies today, where employees are pushed to their limits but with satisfying returns and benefits like high salaries and health perks. In such cultures, the focus is on goals and results. The leaders advocating such a culture are often demanding and rough.
Companies like Tesla and Amazon follow such a type of culture.
4. Heirarchy Culture
This type of culture is controlled and follows a redundant procedure of following the hierarchy at every step. It follows the idea of ‘doing things right’ and sticks to corporate levels and structures. Such cultures discourage creative ideas, and thus, productivity may take a nosedive.
Often e-commerce companies and military schools prefer a hierarchy culture.
What do we mean when we say a toxic company culture?
A toxic work culture is just how it sounds; appalling at its worst! It is a workplace where employees feel unwelcomed, intimidated, or threatened. It is usually a result of internal factors, such as mismanagement and ineffective leadership, or external factors, such as a distracting office environment, an unclear structure, or a stressful client relationship.
For example, imagine you are a professional, and any idea you suggest to your manager comes with apprehension and disapproval. You end up feeling discouraged and fearful for your job. This feeling, over time, can fill you with a sense of dread, thus forcing you to switch or resign.
Negative office politics has caused 58 percent of employees to leave or consider leaving their jobs.
Here’s another thing: a hostile work environment can negatively impact your employees’ morale and productivity and even lead to legal problems. A toxic work environment is archaic and hard to identify but can profoundly impact your company's success.
Long story short, you can spend millions on robust employee engagement strategies, but if your company culture is toxic, all your efforts will be in vain.
According to a study of about 34 million online employee profiles, “a toxic corporate culture is by far the strongest predictor of industry-adjusted attrition and ten times more important than compensation in predicting turnover.”
Pic Source: MIT Sloan Management Review
Red flags to watch out for in a toxic organizational culture
If you are stuck in an environment and notice these red flags, then it is best to turn around and run,
- Employees feel stressed, anxious, or burnt out
- High turnover rates
- Lack of trust or communication between employees and management
- A competitive or negative atmosphere
- Lack of work/life balance
- Employees feel like they are not valued or there is a lack of appreciation
Benefits of having a good company culture?
Building a good company culture can be difficult, but given how companies like Wipro and Apple have transformed by fostering a great company culture, it's safe to say that your efforts will be rewarded in manifolds. Some of the benefits of good company culture are-
Improved retention and reduced turnover
Employees who feel valued and supported by their company are more likely to stay with the company for a longer period of time. This can help reduce the costs associated with hiring and training new employees.
Increased productivity and efficiency
When employees feel that they are part of a positive work culture, they are more likely to be motivated and engaged in their work. This can lead to increased productivity and efficiency.
Companies with a positive reputation for their culture are often more attractive to top talent, as well as to customers and partners. This can lead to a competitive advantage in the market.
Improved decision making
Companies with a culture that encourages open communication and collaboration are better able to make informed decisions, as they can draw on the diverse perspectives of their employees.
Companies with a culture that encourages creativity and innovation are more likely to come up with new and innovative ideas. This can help them stay ahead of the competition and drive business growth.
As per MIT Solan Management Review, topics that you might expect to matter, such as friendly colleagues, flexible schedules, and manageable workloads, were commonly discussed but had little or no impact on a company’s overall culture score. But the word ‘respect’ is 18 times more powerful than any other predictor of culture.
What has changed in the company culture post-pandemic?
A study by CNBC states that ‘in 2021, roughly 47 million workers voluntarily quit their jobs, and the high turnover has continued into 2022, with 4.4 million people resigning in February, according to the U.S. Department of Labor. That's just below November's record-shattering number of 4.5 million employees who left.’
Many companies claim to have a great culture, but the true test occurs when the workplace goes through a major shift, like the Covid-19 pandemic. Due to the pandemic, employees were forced to confront their changing work cultures and adjust accordingly.
- One of the most significant changes has been the way employees work. Before the pandemic, many people worked in traditional office settings. However, post the pandemic, one saw a stop in the hustle culture, and working from home became the new normal.
- The rise of the gig economy and the decline of traditional 9-5 jobs has led to a more uncertain work environment. The pandemic has also made it clear that employers are not always looking out for their employees' best interests. It has led to a more suspicious and negative perspective toward work culture.
- There is a greater focus on health and safety in the workplace. The truth is offices are now more likely to have features such as hand sanitizer stations and increased cleaning and disinfecting procedures.
- Work-from-home scenarios have prompted flexibility. It means that people have more control over their work hours and can work from anywhere while still having time for other priorities.
What can a manager do to create a strong company culture?
Statistics on company culture show that managers determine the quality of your company’s culture. Team leaders’ talent, skill, and knowledge can exponentially improve company culture and productivity. There is a whopping 70% difference in culture quality between companies with lousy and great team leaders.
One of the core qualities of a manger is to transform a stagnant culture into a great one with experience, understanding, and strategy. The information below will help managers understand the team and do the right thing.
1. Hire the right people.
Here’s the deal! If you hire people who align with your company's values and goals, they will influence the ‘’vibe’’ of the workplace for the better. But it is not easy to choose high-growth talent as most businesses are fishing in the same talent pool.
Around 77% of the hiring team includes well-defined questions to determine the candidate's cultural fit. Employees who are a good fit for the company are more likely to be satisfied with their jobs and remain productive.
2. Communicate your company's values and culture.
Remembering your company's values and culture is pivotal for your and the company’s growth. Managers can act as good advocates and review published case studies and reports on which company values work best for their industry.
Also, just because a company’s value works best for a certain company doesn't mean it will work for everyone else. Through an all-inclusive meeting, leaders and stakeholders must decide what works and doesn’t.
But how to communicate it?
A manager can communicate and implement any changes through regular companywide meetings, sending emails or printed updates, and posting signs around the workplace.
3. Don’t forget to reward employees who exemplify the company culture.
Rewarding employees who exemplify the company culture can build a strong team and create an atmosphere of success. Rewarding and recognizing at the right time encourages employees to continue to embody the company culture and motivates them to work hard and be loyal to the company. With an elaborate employee engagement platform, monumentalizing success can be challenging and appealing.
According to a poll, 87% of corporate recognition programs value tenure. More than 91% of HR experts agree that rewards and recognition encourage employees to stick around.
Vantage circle is an innovative cloud-based employee engagement platform that provides employers with the tools to manage, recognize, and reward their workforce. It is a comprehensive platform that enables employers to create a culture of recognition, collaboration, and engagement.
Vantage Circle has helped companies build employee loyalty and foster a productive company culture. With its comprehensive suite of features, Vantage Circle offers businesses an easy and effective way to manage and improve employee engagement.
The possibility of retaining your employees increases by a whopping 63% if they are rewarded and recognized at the right time.
4. Spruce up the meetings
A study suggests ‘an overwhelming 91% of employees daydream during meetings, 96% miss meetings, while 47% believe meetings are the number one time-wasters in the office.’
So, how to capture their attention and improve attendance?
Online video platforms like Zoom and Microsoft Teams are ubiquitous and become boring after a certain period. The manager can desert the traditional way and shake things up by engaging in brainstorming sessions and mid-week meets for a quick overview.
Some other ways could be hosting a challenge where the winner gets to contour the next meeting outline or playing games like “Guess Who?” where the team members have to guess the next ‘employee of the month’s name!’ These activities will ensure employee engagement, satisfaction, and fun company culture.
Credit: 50 Shocking Meeting stats
5. Don’t forget to thank the employees for their awesomeness.
You could not be more wrong if you believe that just financially compensating the employees is enough.
That might sound like a bummer, but I promise you, the alternative is way easier, and that is thanking them for their efforts and hard work.
If you value your employees, a small thanks will cost nothing but take you a long way. Studies suggest that expressing gratitude results in improved employee satisfaction and retention.
So, next time you notice someone going the extra mile to achieve the company goals, or come up with an out-of-the-box idea, acknowledge their effort. Whether it's a team-building activity for spirit week or a regular office meeting, don't forget to recognize their hard work.
Examples of Good Company Culture
This tech Golaith’s much-revered company culture is unique in many ways. One of the most epic things about Google is encouraging employees to be creative and innovative. It is evident in their "20% time" policy, where employees are encouraged to spend 20% of their time working on projects unrelated to their primary job.
Another sui generis factor is that they have an entire section in the handbook dedicated to dogs and how employees can bring pets to work. This way, employees will feel like a part of the organization rather than another cog in the wheel.
Any guesses on who won the best place to work in 2021?
Zoom's exemplary culture has been attracting outstanding talents for some time now. Its fun work culture and cushy benefits attract an incredibly loyal workforce that is dedicated, creative, and productive.
But what makes Zoom different from others?
Apart from being awarded the ‘top company with the happiest employees’ reward TWICE!, Zoom offers unparalleled perks like a gym stipend, mental health fund, and fertility benefits that indulge its employees in a way they can truly benefit from.
Airbnb took a huge hit during the pandemic when the world came to a halt during the pandemic followed by a long period of passivity. However, Airbnb took it as a challenge to focus on company culture and bring out the best in its employees, emerging as one of the best workplaces.
Growth of Airbnb-
Airbnb is an employee-centric organization. They have their own “Airbnb way” of keeping their employees on the same page. In fact, one of the well-liked but quirky practices in their workplace culture is "elephant, dead fish, and vomit.”
- Elephant means confronting the "elephant in the room" or a significant issue among the team.
- The dead fish denotes past events whose effects are still felt
- Vomit refers to tackling topics that employees are incredibly anxious to talk about.
Adding to the mix, Airbnb has an entire team dedicated to employee engagement that celebrates and cherishes team-building milestones and gets rewarded for their performance and participation.
Examples of Bad Company Culture
Unhealthy work-life balance, bad management styles, high employee turnover, and improper communication are some characteristics of poor company culture. Even today, there are companies that reflect poor management and bad company culture.
Uber’s company culture is what we can call as aggressive and unbridled, where results are valued over anything. Of course, the rate at which Uber grew might force us to think otherwise. But in reality, egalitarianism and bulldozing prevail in this ride-sharing giant's company culture.
This brand is famous for ripping off artists and offering a terrible package to its employees sans the benefits. Its employees have sued it multiple times, while the CEO has a meager 30% approval rate. It also forces employees to cut short their lunch breaks and stay in the office long beyond their shift hours.
10 “Actionable” Ways to Create a Company Culture
Creating a great company culture is important because it's the glue that holds the organization together. Without it, the employees will lose focus on their professional goals and become irate and discontented. Culture plays an important role in building a positive company environment, along with the right mindset, consistency, initiative, and time.
To create a robust and positive company culture, experts advise us to focus on the intangibles and non-monetary benefits that will make you and your company a must-grab opportunity.
1. Hire as the culture requires
The best companies hire for attitude and personality. The attitude can be great, but the applicant's personality must fit the culture.
The best companies hire for attitude and personality. The attitude can be great, but the applicant's personality must fit the culture. - Shep Hyken
The best companies hire for attitude and personality. The attitude can be great, but the applicant's personality must fit the culture
Establishing a company culture requires time and effort, and selective hiring is the first step. Once your company grows, it's important to pick the right people for the job so that the office doesn’t become a circus.
But the radical question that arises here is how?
- Ask the candidate’s former employers and colleagues about their experiences working with the candidate. It will give you an indication of whether they are a good cultural fit for your organization.
- Consider the candidate's character beyond their skills and experience. Do they have integrity, respect, and commitment to do their best?
- Don't be afraid to trust your instincts. Trusting your gut when considering a candidate is important, even if they seem to check all the boxes on your checklist.
Another insidious issue with the era of ‘culture fit is discrimination. It is not uncommon for companies to use 'culture fit as a smokescreen to justify discriminatory hiring practices, though often unconsciously.
For example, a study, which observed 120 hiring managers’ behavior based on cultural fit criteria, found that “bonding over rowing college crew, getting certified in scuba, sipping single-malt scotches in the Highlands, or dining at Michelin-starred restaurants was evidence of fit.” Surprisingly, “sharing a love of teamwork or a passion for pleasing clients was not.”
So, how do we solve this issue?
- The hiring team should be diverse.
- Using AI-based hiring tools that help minimize bias
- Using previous hiring data to determine if any particular community's candidates are constantly getting rejected. Try to find out why
2. Instill Company Culture Goals
No company is complete if its culture is not in place. Many companies conduct yearly sessions to instill and revisit the company culture goals so everyone is on the same page.
By instilling company culture goals into employees, organizations can ensure that everyone is on the same page, working towards the same mission, and creating a close-knit and tenacious work environment.
"I think as a company, if you can get those two things right — having a clear direction on what you are trying to do and bringing in great people who can execute on the stuff — then you can do pretty well."
- Mark Zuckerberg, CEO of Facebook
A great example of excellent work culture is Hubspot. Hubspot’s company culture is based on flexibility and autonomy, catapulting employees to give their best. They have a 128-page culture slide deck, and their motto is to focus on HEART, which stands for humble, empathetic, adaptable, remarkable, and transparent.
3. Understanding Expectations
Understanding employees' expectations are important because it allows employers to create an environment that grooves with their standards and anticipations. You will be surprised to see that understanding the expectations is conducive to better dynamics, collaboration, and job satisfaction.
But the common problem here is that most companies overlook this factor and continue to function in the same conventional way. It leads to disengagement, toxicity, and disruptions.
So, how do we deal with it?
Because if we don’t, termination is inevitable, and you will keep making the same mistakes, thus corrupting the company culture.
- The right way to go about it is to set expectations in the hiring phase. It will ensure that new hires understand the job requirements and company culture and are aware of what is expected of them in their role.
- Provide employees with a job description outlining their responsibilities and any supposition you may have regarding performance, attendance, and behavior. Establish goals that employees can strive to achieve. It will help employees stay on track and measure their progress.
4. Put Recognition First
As per the latest studies, 'recognition is a top driver of employee engagement. When employees believe that will be recognized, they are 2.7X more likely to be highly engaged.' - Quantum Workplace
Recognizing and rewarding employees at the right time can be the crowning stroke for a healthy organizational culture. Recognition must go beyond performance reviews to make a genuine impact. However, the mantra for success is to focus on three pivotal factors.
- Timely recognition is important, as the right gift at the right time always wins.
- The frequency of recognition should be consistent. It will avoid questions and reduce employee dissatisfaction.
- The gift should be value-based, so the employee feels valued and cherished.
Although rewards and recognition awards are quite common, they are often underlined with pervasive problems like lack of transparency and absence of communication where the recipients feel biased and unhappy.
How can we counter this problem?
- Provide clear and consistent criteria for awards.
- Create an open and inclusive process for selecting recipients.
- Publish the criteria for rewards and recognition programs.
- Make the rewards and recognition programs visible to everyone.
- Celebrate the achievements of those who have been rewarded or recognized publicly.
- Make sure the rewards are equitable and distributed fairly across the organization.
We can claim that Airbnb has done well in this area since they were named first on Glassdoor's "Best Workplaces in 2016" list. They adopted terminologies that help employees understand the significance of their contribution to the firm, thus creating a distinctive workplace culture. It only resulted in a powerful and terrific work culture.
5. Incentivize Participation
Benefits of Incentivizing equal participation are;
- Encourages collaboration and promotes fairness and inclusion.
- Allows everyone to benefit from the collective knowledge and experience of the team, thus building a community.
- Exposes the organization to a wider range of perspectives and ideas.
However, many companies need to realize that incentivizing participation will force employees to participate (maybe half-heartedly) with the expectation of getting an incentive or return.
Employees often are apprehensive while participating in certain events like ‘team retreats’ and ‘movie nights’ due to circumstances, work, or simply because they are too busy with other priorities. As such, companies should not resort to apathy and forced participation.
It may lead to resentment, feelings of alienation, and low morale. Additionally, it may be seen as violating their right to choose how they spend their free time.
If you are reading this, you might be wondering how to play from both sides and support your company while ensuring that the employee's sentiments are not compromised.
- Well, first things first! Check with the employee on the reason(s) for not being a part of the event.
- Analyze if the reasons clash with his beliefs, morals, values, or religion. If yes, then offer a way out of the event. However, if the reason is insignificant, you can explain the incentives and what one can expect from participation.
- Have a one-on-one conversation to resolve the matter
The counterpoint of incentivizing participation is that it brings the organization together in one platform. By rewarding participation, everyone feels they have a stake in the team's success and are more likely to contribute and collaborate.
Let’s give an example of terrific employee collaboration for an event!
Supergas, a leading LPG distributor and marketer who participated in the ‘Global Virtual Walkathon’ is a great example of incentivizing team participation. The idea was conceptualized by Vantage Fit,where the focus was to bring the corporate giants together to build a sustainable future while planting 1 tree every 10,000 steps.
Supergas showcased exemplary team participation, where 5,80,000 steps were completed resulting in 58 new trees. It was only possible with the team working together. If this doesn’t explain team incentivization, What else would?
6. The wise thing would be to encourage diversity.
Opening your mind and perspective towards a socioculturally rich workforce is a great way to maintain a healthy company culture. It encompasses not only the basic differences but also highlights unique ethnic beliefs, socio-economic backgrounds, sexual preferences, and political beliefs each employee brings to the workplace.
Most biggies today emphasize having a diversified workforce, and proper diversity & inclusion rules are set.
Unsurprisingly many companies need help understanding the concept of diversity well in workplaces. Today, diversity, technological innovation, and globalization form the fabric of the ideal company culture.
But does a diversified workforce ensures respect and fairness for all?
No, as the workplace diversifies, the chances of biases, bigotry, and prejudice increase.
Infact, ‘61 percent of employees have seen or been the victim of discrimination at work because of their age, color, gender, or LGBTQ+ status.’
Then how to deal with a diversified workforce without compromising values?
- Establish strict anti-discrimination policies
- Clear communication
- Extensive training on the DEI inclusions
- Celebrate diversity
- Take action when necessary
"A great example of a diversified workplace is GAP. “The diversity and backgrounds of the people here lend itself to ensuring you have a full experience at work.”
Angela Rapadas, Director of Customer Success.
A diversified workplace has the power to foster empathy and compassion that goes way beyond the optics. And after all, good things come only with amalgamation; think music genres like jazz or your favorite foods like cheesy risotto.
7. 360° Evaluation and Feedback
Continuous feedback is one of the many strings on the bow that aid businesses in improving culture.
360 degree feedback offers a comprehensive evaluation of employee performance from multiple perspectives, enabling organizations to evaluate better.
It also encourages employees to seek feedback voluntarily. That can only happen when the employees know that the feedback is both encouraging and constructive.
But as a company, how do you avoid prejudice during feedback?
To solve this problem, many companies nowadays opt for feedback surveys. They fall under performance management tools and are quite accurate and effective. External survey tools also offer more robust reporting capabilities, making analyzing data and drawing useful insights on employees easier.
One such tool that has been garnering much attention is Vantage Pulse. Vantage Pulse is an innovative employee survey and feedback tool that offers scalable insights into the organization. Managers can analyze trends and employee turnover ratios and predict behaviors. It resulted in a better organizational culture and employee experience.
“I think it’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better.”
Continuous evaluation and feedback offer companies the dual benefit of a competitive edge and a positive work environment which helps them close barriers to performance and seize opportunities when they arise.
Bigwig companies like Netflix are thriving on feedback culture. The word ‘feedback’ is mentioned 11 times on their recruitment page, which tells us what a big deal it is for Netflix to have a persistent feedback culture and what lengths they go to achieve the benchmark.
8. Avoid Micromanaging
Micromanaging is a management style in which a manager closely controls and monitors the work of their employees. This often involves setting specific, detailed instructions for how tasks should be completed, and closely monitoring employees to ensure that they are following those instructions exactly.
How does micromanaging impact companies?
Micromanaging can be detrimental to employees, as it can stifle creativity and innovation, and can lead to feelings of frustration and resentment. It is generally considered to be an ineffective management style.
Imagine working in your office and your manager breathing down your back continuously. What do you think is going to happen? You are going to lose it eventually!!
How to avoid micromanaging in the workplace?
- Stop micromanaging and start empowering.
- Delegating unbiasedly
- To avoid retaliation, give constructive feedback as an alternative to criticism.
- Set boundaries and deadlines before allocating the project
- Consistent scrum sessions to stay on the same page
- Step away from time to time to get a different perspective on a project.
Autonomy brings a sense of ownership over their work. When individuals can make decisions and take action, they often stay inspired to do their best work. With autonomy, individuals are also likely to stay engaged in their work because they feel they have a say in how things are done.
9. Peer relationships should be heeded.
Peer-to-peer relationships can help a company culture by creating a sense of camaraderie and connection among employees. It will stop our auto-pilot systems for some time rather than working constantly.
When peers share their experiences, challenges, and successes, it can foster a sense of understanding and appreciation for each other. It can also strengthen team dynamics and foster collaboration and trust, key elements of successful teams.
Additionally, peer-to-peer relationships can help identify potential blind spots, provide a soundboard for ideas, and support innovation.
A great way of improving peer-to-peer relationships that are commonly seen is the water cooler conversations.
Water cooler conversations are a buzzing space in offices as they witness conversations regarding daily activities, small talks, interactions, gossip, and whatnot! Companies today encourage employees to have such conversations and even invest in building phenomenal public spaces to draw them out.
A great example is Samsung, which invested in massive spaces sandwiched between floors to attract employees from their derriere, resulting in a sensational mingle culture.
After all, as Facebook HR states,“the best ideas come from hallway and cafeteria conversations.” Water cooler conversations allow employees to bond and connect in an otherwise formal space resulting in better morale, confidence, and collaboration.
We believe everything said above is right, but how do we stop these conversations from becoming snide and bitter?
- Remind employees to remain professional, respectful, and positive.
- Monitor the conversations and intervene if necessary
- Establish an open-door policy where employees can come to you to discuss any issues they may have with another employee.
- Encourage team-building activities that will help foster better working relationships.
Workplace flexibility helps create a better company culture by allowing employees to feel more in control of their work-life balance. It can lead to greater job satisfaction, reduced stress, and higher morale.
Flexible working arrangements such as flexible hours and remote working options, can also help boost productivity, as employees believe that their well-being is a priority to the company.
Sounds great, right? But suppose you remove the rose-tinted glasses and see carefully. In that case, many problems can arise from flexible work schedules, indirectly affecting the company culture, such as
- Difficulty in maintaining a work-life balance
- Lack of career growth.
So, how do you prevent such problems?
- Develop a culture of accountability. Encourage employees to take ownership of their work, and hold them accountable for their performance.
- Implement rewards and recognition systems. Recognize and reward employees who demonstrate excellence in their work. It will help to create a more positive work environment and encourage productivity.
- Implement effective communication strategies. Ensure that employees are aware of the goals and expectations and can communicate effectively with management and each other.
- Provide resources to help employees stay motivated. Offer employees opportunities to learn new skills, access additional resources and receive coaching and mentoring.
- Foster a collaborative environment. Encourage team collaboration and problem solving, and provide employees with the tools they need to work together effectively.
KPIs to Measure Company Culture
How can KPI tracking improve your company culture and enhance employee performance? What are the most important company culture metrics to track for your business? How can company culture be improved by using KPIs?
KPIs or Key performance indicators are also touted as the windows to see the soul of your organization. They offer quantifiable indicators of how the company culture changes over a period and acts as a milestone for the company to make better decisions regarding the company. Let us glimpse a few of them to understand the concept better.
Anecdotes are a great way to understand employee sentiment and offer a deep insight into employee behavior. It is a measuring practice that presents a short story or scenario that describes a particular situation in the workplace. It is intended to provide insight into how employees think, feel, and behave in their job or organization. You can use anecdotes to gauge potential problems, explore solutions, and better understand employee perspectives.
For example, in a question like, “I don’t know why ‘the company name doesn’t just………”. The employee's first reaction will be considered and gauged to understand where the company stands regarding its culture and people.
eNPS (employee net promoter score) measures employee satisfaction and engagement. It is a metric used to measure an employee's loyalty toward their organization. It is calculated by subtracting the percentage of employees who are Detractors from the percentage of employees who are Promoters. The higher the score, the happier the employees are with their job.
Why is eNPS so important?
A high level of employee satisfaction on the employee net promoter score tells not only about the satisfaction levels of employees but also that employees find the company valuable enough to contribute to and is worth investing.
A great example of an organization have a staggering eNPS score is Zoom (a video conferencing tool), with a whooping score of 84.
Employee Satisfaction Index (ESI)
Employee satisfaction index (ESI) is a metric used to measure employee satisfaction with an employee's job. It is based on surveys, interviews, or direct observations of employees.
What can ESI do?
- The index is used to evaluate how well an organization is meeting the needs of its employees and provides insights into how engaged and motivated employees are.
- You can also use it to identify areas of improvement and focus on strategies to improve employee satisfaction.
A company with a great ESI is Accenture. As part of Accenture's apprentice program, it offers opportunities to people who wouldn't otherwise be able to work in technology. Moreover, employees say that they enjoy working with good managers and appreciate being given responsibility at a young age.
4. Employee Turnover Rate:
The percentage of employees who leave an organization voluntarily within a given period is calculated as the employee turnover rate. It is calculated by dividing the number of employees who left an organization by the total number of employees and multiplying the result by 100.
According to, a study by SHRM 49% of executives saw higher turnover in their organizations post-pandemic. This shocking number resulted from the ‘great resignation’ that hit many companies globally. Thus, it prompted companies to seek the reasons behind it, indicating that toxic company cultures were one of the major reasons employees left.
Frequently Asked Questions (FAQs)
Q. What elements make up a company's culture?
A: Company culture consists of the work environment, employee satisfaction, perks, benefits, dress code, aesthetics, and social calendar.
Q. Why is company culture important?
A: Company culture is important because it can
- Attract top-level talents
- Improve communication and collaboration
- Boost productivity.
Q. How long does it take to change a company culture at workplace?
A: Changing a company culture at the workplace can take a significant amount of time and effort. It is not a quick or easy process, and it can take months or even years to fully implement changes and see the desired results.
Q. What are some common mistakes companies make when building a strong company culture?
A: Some common mistakes companies make when trying to build company culture are,
- Failing to define their culture.
- Business goals are not aligned with their culture.
- Not investing enough resources in employee development.
Q. Difference between strong and weak company culture?
A: A strong company culture is one in which the values, beliefs, and behaviors of the organization are clearly defined and consistently demonstrated by all employees.
On the other hand, a weak company culture is one in which there is little coherence or consistency in the values, beliefs, and behaviors leading to confusion among employees, a lack of direction and purpose, and lower levels of engagement and satisfaction.
Q. How can I remove workplace misconceptions?
A: A few ways to eliminate misconceptions in the workplace include,
- Regularly revisiting your culture,
- Being intentional about who you hire,
- Investing in employee retention.
Q. What are some ways to measure the success of your company culture?
A: There are many ways to measure the success of your company culture, but some common metrics include employee satisfaction, turnover rate, and engagement.
Q. How can company culture help you attract and retain top talent?
A: Employees are more likely to stay with a company with a strong culture that aligns with their values. Additionally, a strong culture will draw more potential employees with a positive reputation.
Q. How to maintain company culture during growth or without growth?
A: Maintaining a strong company culture during times of growth or during periods of stagnation can be challenging, but it is important for the health and success of the organization. Here are a few strategies that can help:
- Clearly define and communicate the company's values and culture
- Set expectations and hold people accountable
- Foster a sense of community and inclusivity
- Provide opportunities for growth and development
"The leader’s job isn’t to have all the ideas. His job is to ensure that all the ideas are heard and that the best one wins.”
– Chris Hawker
Some of the most successful businesses in the world, like Google and Cisco, have terrific workplace cultures.
Is it a fluke that they have satisfied workers, a great work culture, and massive profits?
Unsurprisingly, your company's success depends on more than a strong business plan, clever positioning in the market, or even a great product. Your performance is heavily influenced by how well you manage people and culture, or, in other words, by the level of employee satisfaction and the entire work environment.
‘90% of CEOs and CFOs who participated in the MIT and Glassdoor survey believed that an engaging corporate culture would increase the value of their company. Moreover, 80% of them ranked culture as one of the top five influential factors determining their company's valuation.’
Firms must adopt an adhocracy culture where agility and change is the focus word. Such cultures solve complex issues and maintain a good workplace culture by focusing on the overall hierarchy. An agile transformation can completely redefine how a company manages projects, responds to customer requests, and expands its business, which is why some businesses are prepared to put up the effort necessary to make it happen.