Healthy Company Culture: Why Is It Important And How To Build It?
In today’s world, people just don’t seek a company, but growth, opportunities, and appreciation. With an increased competition, a vibrant company culture can become a real advantage to attract the best talent and staying ahead. A company’s culture impacts every aspect of the business because it is closely linked to its employees. A healthy culture does not just happen. It requires a clear purpose, understanding, and effort from top to bottom.
Why is company culture so important?
A company may have the best product, an excellent brand reputation, effective policies, and processes but a poor culture is less likely to succeed than a company with a healthy culture.
The enhanced morale of employees in an organization with a healthy company culture will increase productivity. When the workers increase the productivity, the organization’s financial health improves, and thus profits increase.
Employees having a positive outlook are loyal to the company, which minimizes the employee turnover. Employee turnover has a high cost to a company, with increased expenses for recruitment, hiring as well as training.
Healthy company culture encourages the employees to deliver quality services and products. These cultural standards for excellence happen to be an essential factor for generating a service or product reputed for high quality.
When shaping their culture, NetFlix was not only determined to build a strong company culture but a culture that would motivate the high performance at the same time. It encourages development but in an informal fashion. It does not have any formal development programs. Managers are encouraged to set up more realistic goals and strategy and be transparent around decision making.
Netflix believes it is more motivating to employees to have the highest salary possible than to have an average salary with varied bonuses. It does not have a formal vacation policy but allows salaried employees to take off time whenever.
Netflix believes that by setting a few rules, high performing, responsible staff can creatively respond to opportunities, and continue innovating and growing.
How to make a good company culture?
There is no miracle drug for improving the company culture, but there are some few positive steps which you can take to build that dream organization for your employees:
I. Open and Transparent Communication: Why do a lot of employees leave? Because they are not respected enough to be heard by their management team. How can they be retained? When employers communicate better with employees by responding to their concerns in a prompt manner. When employees know they can trust that their organization, has their best interests in mind and enough respect to be transparent about important matters, they tend to respond by being more loyal, motivated and working harder to help the company succeed. Creating a culture of communication that’s open and direct can support retention.
II. Hire Ambitious and Optimistic People: Who doesn’t want to hire someone who will go the extra mile? Ambitious people have big goals and expectations for themselves. Ambition triggers creativity, innovation, and a go-getter attitude. But make sure such employees do not alienate others. Hiring optimistic worker improves teamwork and creates a strong culture.
III. Create a comfortable working environment: A work environment designed with comfort in mind is a sure-fire boon to high quality and efficient working habits. Get rid of outdated furniture, opt for partitions if multiple employees are sharing a space, create a break room that attracts employees, have a proper lightning and stay organized.
IV. Empower your employees: One of the things that make people happy in the workplace is the ability to be productive and get things done. When leaders empower their employees to make their own decisions in order to move forward on a project or task, it gives value to the work accomplished. By empowering employees to make their own decisions, and by default experience successes and mistakes, they have an opportunity to learn and grow.
V. Organize team building activities: Team building in the workplace enables better communication, better relationships, encourages creativity, develop problem skills and ultimately enhances productivity. Team building doesn’t have to always be a meeting to accomplish the goal of a team. You can build your teams by structuring activities and fun events that team members can do together. You can do a variety of exercises or play a variety of sports as team builders.
VI. Flexibility at the workplace: Giving employees the freedom to complete tasks in the way that they feel will achieve the best results will breed a happy workforce. Flexible working doesn’t have to cause a huge shift in the day-to-day running of a company. It can be achieved in a number of ways like flexible working hours, hot desking, offering remote working, additional “cash in pocket”, reduced work-loads, removing micro-management and so on.
VII. Rewards and Recognitions: Companies have an assumption that employees are driven by financial rewards but a recent survey revealed that money by no means is the motivating factor. According to this survey, only 5% of employees are motivated by bonuses while 62% are motivated by appreciation and recognition. Send thank you emails, think about giving vouchers to the best employee each month or quarter, throw a party if your sales team hits a huge goal, implement a bonus scheme. Happy workers are more engaged and more inclined to perform better.
A healthy work culture embraces its people, nurtures its people and invests in its people. Do whatever you can as often as possible to remind your employees of your vision and values and strengthen your company culture. A better workplace means better reputation, better reviews, better productivity, and a better retention.