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Assess Company Culture

5 Simple Ways to Assess Company Culture

Leadership structure, office environment, core mission and values, interpersonal relations, team engagement and communication style—these are just some of the many organizational details that shape company culture, something that is becoming more and more important to businesses of all kinds. A strong company culture improves:

  • Identity of the organization
  • Employee retention
  • Corporate image

What’s more, more people rank “workplace well-being” over monetary or “material benefits,” according to the Harvard Business Reviewand that well-being is created through a positive company culture.

This is why it’s important to assess company culture, just as you would your finances or sales process. If you’ve never done so before, use these five action-steps to critique—and ultimately improve—the culture of your organization.

  1. Evaluate the Onboarding Process

If your goal is to recruit people who are innovative, competent and dedicated to your mission, then it’s crucial to earn their loyalty and respect in the hiring and onboarding process. If the process is unorganized or they’re waiting around for someone to meet with them, they expect the organization to follow suit.

Consider if your training methods are outdated, monotonous and derivative—such as reading a company manual—or if the approach is personalized, engaging, creative and participatory. New hires are eager to learn their positions and acclimate to the team, but if the onboarding process doesn’t “provide the resources and tools they need to ramp-up, they can end up stagnating,” suggests SaplingHR.

Show a strong company culture from the beginning, with an onboarding process that’s as engaging and interesting as it educational.

  1. Gauge Openness Within Leadership

It’s important that you foster a culture of embracing change, especially if you want to be seen as relevant and accessible to young professionals. A recent headline in Harvard Business Review confirms this, Changing Company Culture Requires a Movement, Not a Mandate. The authors explain why this can be challenging:

“Innovation demands new behaviors from leaders and employees that are often antithetical to corporate cultures, which are historically focused on operational excellence and efficiency.”

When assessing company culture, determine whether leadership has the ability to be agile and fluid. Are they stuck in the “9-to-5” mindset, which can be stiff and resistant to change? If so, the next question is: how can our culture evolve despite hesitancy among executives? There may be the need for change at the top or a board meeting with those who have a say in the direction of the company.

  1. Look at Incentive Programs (Or Lack There-Of)

The act of praising and incentivizing employees who perform well or provide value to the company is critical—but you don’t have to break the bank with bonus checks that are taxed at an extremely high rate.

Instead, make this aspect of the company culture more personal. Take into account each employee’s interests, lifestyle and hobbies, and find ways to reward them with these personal details in mind. For example, if someone loves cooking, show appreciation with a gift certificate for cooking classes.

Conversely, you can give employees an option for how they want to be recognized with something as simple as gift cards, suggests Jason Mauser, VP of Sales at Hawk Incentives. They’re are ideal for satisfying a “diverse group of recipients” because “they’ll appreciate the ability to make their own decision.”

  1. Observe Team Interactions

The strongest and most sustainable company cultures are forged on relationships and human connections. As you assess culture, analyze the dynamics between co-workers and notice how they communicate or collaborate with each other.

  • Do they respect one another’s ideas and opinions?
  • Do they relate on an interpersonal level?
  • Do they function cohesively as a team?
  • Does the setting promote a free exchange of dialogue and unique perspectives?

“In a teamwork environment, people understand and believe that thinking, planning, decisions and actions are better when done cooperatively,” suggests Human Resources expert Susan Heathfield in an article for The Balance.

If there aren’t strong team connections, consider adding more team outings to the roster. These give employees a chance to get to know each other outside the stresses of the office, while you show appreciation for their hard work.

  1. Determine Attitudes from Answers

The right questions will elicit the most valuable insights about your company culture.  Instead of asking directly about culture, gauge how the current climate is affecting attitudes by asking about the success and challenges of the business. If negativity is coming through in answers, you know a change is needed to steer the ship back toward calmer waters. Certain topics may also elicit the same response company-wide, which can also be telling in terms of how the organization is handling a specific issue or challenge.

Here are a few questions to try from Lessons Learned in 29 Powerful Questions to ask in the New Year:

  • What didn’t go so well last year?
  • Were there any cringe-worthy moments?
  • What is the one thing your organization was worst at last year?
  • What did we learn from our mistakes?
  • What lessons can our company leverage?
  • What could our organization do differently over the next 12 months?
  • What break-through moments did we experience last year?
  • What is holding our company back?
  • What can each of us do to be more helpful to the team?

Assess Company Culture—Regularly

The culture of your organization impacts everything from productivity and engagement to retention and growth. While there isn’t a “company culture 101” blue print for every business to follow, you can assess on a regular basis to uncover the unique culture pillars of your organization. Use these tips to do exactly that, slowly creating a company culture that retains top talent and facilitates success.

If you don’t regularly assess your company culture and pay attention to what your employees want, you risk facing the high cost of employee disengagement. To learn more, download this white paper: Is HR a Cost Center? The True Cost of Employee Disengagement.

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Find out more about your employees’ needs and expectations by downloading this report: The Retention Epidemic: Why 74% of the North American Workforce Plans on Quitting.

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Are you ready to improve your work culture? Learn how to enhance your culture and increase employee engagement by attending Achievers Customer Experience (ACE) 2018 in Toronto, October 23-24. Get the early bird rate and save $200 off the regular rate today. Buy now here.

Do you have any thoughts on this article? Share your comments below.

About the Author
Jessica ThiefelsJessica Thiefels has been writing for more than 10 years and is currently a professional blogger and freelance writer. She spent the last two years working tirelessly for a small startup, where she learned a lot about running business and being resourceful. She now owns her own business and has been featured on Forbes. She’s also written for StartupNation, Manta, Glassdoor and more. Follow her on Twitter @Jlsander07 or connect on LinkedIn.

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why employees quit

Understanding Why Employees Quit

Knowing what makes employees quit — and then heading off those problems — is the goal of every HR department. While you’ll never be able to avoid individual events that disrupt the lives of workers and their families, it’s helpful to have an overview of preventable causes for employee churn. People leave jobs for several classic reasons, according to Harvard Business Review, all of which are somewhat predictable. The key is to understand each reason well enough to defuse it with a proactive intervention. Here are the main reasons workers cite for leaving their positions, and how you can slow this expensive leakage and build your employee retention:

They Don’t Get Along with Their Boss

This reason is the elephant in the room, and we can’t discuss employee retention without starting here. Gallup CEO Jim Clifton points out the primacy of management know-how: “When you name the wrong person manager, nothing fixes that bad decision. Not compensation, not benefits — nothing.”

When an exit interview or other feedback shows that you have a problem manager, you need to rectify the situation as soon as possible. If the person seems open to developing new skills, it’s often worthwhile to provide them with intensive management training. However, if real change doesn’t seem possible, you’ll ultimately save money by replacing them with someone who simply has better management skills.

Their Lives Take a New Direction

This may be unexpected, but research cited in Harvard Business Review notes that job-hunting rates jump by 12 percent right before a worker’s birthday. Researchers speculate that a person is often stimulated by the arrival of their birthday or another milestone to take stock of their life and see if their career is going in the direction they want. While you have limited input into this private self-examination, it’s helpful to incorporate a personal check-in along with celebrating your employees’ birthdays. Are they happy with their job? What are their current thoughts and ambitions?

Their Careers Aren’t Moving Forward

In today’s networked marketplace, your most talented employees are going to keep an eye on opportunities in their field, and Gallup’s 2017 report on the State of the American Workforce finds that 51 percent of them are ready to jump ship at any given moment by actively looking for a new job or watching for openings. Harvard Business Review notes that Credit Suisse responded to this tendency by having their internal recruiters cold-call employees to let them know about new openings arising within the company that they might be qualified to fill. This program ended up moving 300 employees into more challenging positions and saved the company $75 to $100 million in employee turnover costs.

They Don’t Feel Challenged

Human resources expert Susan Heathfield warns employers that they have to make sure their workers are actually using their skills and abilities, and Gallup’s report found that 68 percent of today’s workers feel they’re over-educated for their current positions. While this is related to building a career path, it’s not the same. A position may have a title that looks great on a resume, but if the day-to-day operations don’t actually feel interesting and engaging, the worker is going to be looking for the exit door. Heathfield notes, “Work closely with employees who report to you to ensure that each employee is engaged, excited, and challenged to contribute, create, and perform. Otherwise, you will lose them to an employer who will.”

The Company Lacks Vision

To keep great workers, you have to make it possible for them to feel aligned with a company vision that’s both meaningful and tangible. Gallup CEO Jim Clifton, in his foreword to the 2017 report, puts it succinctly: “Change from a culture of “paycheck” to a culture of “purpose.” Your very best employees are the ones with a powerful sense of internal motivation, and you nurture that motivation by showing them how their efforts contribute to the overall goals of the company. CNBC notes, “Some of the most successful companies are able to attract and retain great employees because they are great at communicating their vision all the way from the top down to the front-line workers.”

Their Efforts Aren’t Recognized

While it’s essential to give your employees the sense of purpose mentioned above, that alone is not sufficient. Even your top workers, who care passionately about doing a good job, still have a psychological need to be recognized for the effort they expend. Emotional intelligence leader Travis Bradberry comments that a failure to recognize good work is one of the biggest mistakes a manager can make. He writes, “It’s easy to underestimate the power of a pat on the back, especially with top performers who are intrinsically motivated. Everyone likes kudos, none more so than those who work hard and give their all.” Establishing a system for employee rewards and recognition is fundamental to nurturing those human resources that your company is lucky enough to have.

In today’s tight labor market, it’s more expensive than ever to lose a good worker. Josh Bersin of Deloitte points out that employees are “appreciating assets,” while the cost of losing one is generally about 1.5 to 2 times the person’s annual salary. Furthermore, the increasing team emphasis of many workplaces makes it harder than ever to integrate a new hire. Keeping your workers engaged is essential to running a successful business, and every manager needs to stay focused on this goal. To learn more about employee turnover, check out our infographic 6 Stats That Speak to Employee Retention.

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Positive Work Culture

The Secret Ingredients of an Amazing Company Culture

If you were asked about your top priorities as a manager, how would you answer? Increasing productivity would probably be first on your list, along with steady company growth, low employee turnover, seamless teamwork, and high employee engagement — after all, most businesses share similar goals.

However, you might not have considered developing an excellent company culture among your top-tier priorities, even though it is the foundation for every one of your key goals. When focusing on creating an amazing company culture, you will discover that other elements of business success fall into place organically. Let’s unpack that concept a bit and see why.

What Is Company Culture?

The first step toward improving your company’s culture is to have a clear handle on what the term means. One of the most accurate definitions is offered by business change strategist John Kotter. He defines company culture as “group norms of behavior and the underlying shared values that help keep those norms in place.” The key words in this definition are “shared values.” Employee alignment with your company’s mission and values is a critical component of positive company culture. A sure indicator of poor company culture is a workforce, total or partial, that has no personal interest or investment in the overall mission of their organization.

Why Company Culture Matters

A worldwide survey of 20,000 workers, conducted by Harvard researchers, found unequivocally that “culture drives performance,” but only 31 percent of employees report they are engaged with their work. Furthermore, the average employee would only give his or her company a grade of “C” if recommending it to a friend, according to Glassdoor statistics. A Duke University survey of 1400 CEOs and CFOs found that only 15 percent said their company culture is where it needs to be, while 92 percent said improving company culture would improve the overall value of the business.

Other research published in Harvard Business Review finds that disengaged workers cause 60 percent more errors and defects in work performance, while those under stress from negative cultures can increase a company’s health care expenditures by an average of 50 percent. We could go on with the dire statistics, but we’re certain you get the idea. How do you do the right thing for your employees as well as your company?

How to Create a Positive Company Culture

An interesting roadmap for creating a positive company culture can be found in the science of self-determination theory. Researchers writing in Harvard Business Review have identified three universal human needs that are central to fostering employee motivation. These three needs are autonomy, competence and relatedness. Let’s look at each of the three in turn:

Autonomy

To build your employees’ happiness through autonomy, make sure the goals and timelines you ask them to meet are developed in a collaborative manner. Workers need to feel that they have some control over their schedules and approach to tasks, rather than having every aspect of their workday micromanaged. HR professionals know that flexible work hours are at the top of most candidates’ lists of desirable benefits and perks.

Another aspect of leadership that contributes to a positive work culture is the avoidance of pressure and stress. The aforementioned HBR report states that “Sustained peak performance is a result of people acting because they choose to—not because they feel they have to.”

Competence

One of the most powerful employee incentives you can offer is the opportunity for training and development. Showing that you care about the evolution of your workers’ careers is a powerful expression of employee appreciation. This development may take some careful guarding of educational funds in your human resources budget, but the resulting increase in employee well-being will be worth your investment.

In addition to working with your team to set performance goals, you can nurture employee success by setting learning goals. Human beings derive a deep satisfaction from increased skills and competence, independent of every other type of employee reward.

Relatedness

This term describes the need inherent in most humans to feel connected to a larger team effort, and to be recognized and appreciated by other people. Employee recognition best practices should be built around this fundamental element of human psychology, providing opportunities for both colleagues and supervisors to offer recognition and rewards. While your team members don’t exert effort for the sole purpose of receiving rewards, they will thrive in the climate of solidarity and unity that those rewards represent.

Another crucial aspect of relatedness pertains to alignment with company values. The HBR analysis points out that employees need to connect their tasks with a noble purpose, and to feel that their own personal values are expressed in the way they spend their work days.

The CEOs interviewed by Duke University researchers were unequivocal in their statements that company culture drives “profitability, acquisition decisions, and even whether employees behave ethically.”

Building an amazing company culture should be at the center of your organizational health, and it begins with the three psychological elements central to employee engagement. To learn more about fostering an amazing company culture, download our e-book: “All for One and One for All: Uniting a Global Workforce with Company Culture.”

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Top 5 Ways to Boost Employee Morale

Are you one of those bosses who feels their employees should simply be happy to have a job at all? Unfortunately, some supervisors really do feel this way, particularly when the job market is tight. However, it’s an expensive point of view to maintain, especially in an economy that is nearing full employment: Discouraged employees are 87 percent more likely to quit, and you’ll spend a minimum of 21 percent of an employee’s annual salary on a replacement. To avoid this unnecessary expense, follow these five simple tips on keeping employee morale high:

1. Ask for input on special events

Have you ever had a bright idea for a company party or celebration, only to find that no one seems to share your enthusiasm? To avoid lackluster celebrations that don’t do anything to boost morale, encourage your staff to anonymously submit suggestions for the venues and types of employee appreciation events they’d like to see, and then encourage everyone to vote on their favorites. Employee retention depends on giving workers the sense you care about their priorities and that you seek their input on matters that impact them.

2. Encourage honest feedback

Seek genuine opinions from your workers, and don’t be afraid to  apply changes based on their feedback. Employee engagement will increase when you’re perceived as caring and confident enough to hear negative feedback. Winning your employees’ trust not only boosts employee morale, but it improves business results as well. The Harvard Business Review revealed that employee trust is essential to a company’s financial success. Your staff will also more readily buy-in to any changes that you make. Google uses this strategy with great results, creating “Google Cafes” in which all staff members share creative new approaches.

3. Hold yourself to the highest standard

Leadership is all about modeling hard work and dedication. Show your team that even though you have the right to leave early or delegate all the hard work to subordinates, you stay in the trenches and get the job done. Employees will feel supported and inspired by your example. Great leadership is key to employee happiness and success. Gallup’s leadership research shared, “When leaders focus on and invest in their employees’ strengths, the odds of each person being engaged goes up eightfold.”

4. Promote from your own talent pool

According to Forbes, external hires made 18% more than internally promoted employees  in the same jobs. Be fair and examine your internal talent pool before jumping the gun on bringing in an external hire. Give your employees opportunities for growth and advancement so that they will want to stick around and give you their all. If you make the effort to discover the unique skills and talents of each worker, you’ll be in a better position to know whom to promote when the opportunity arises.

5. Build employee motivation with rewards and recognition

Employee recognition is key to making your staff feel that it’s worthwhile to go the extra mile. Celebrating accomplishments through rewards and recognition lets your team know that you truly appreciate their efforts. It also builds a strong sense of teamwork when you encourage workers to offer each other public statements of appreciation. It’s a strong, positive motivator knowing your hard work isn’t going unnoticed and that you’re appreciated by your coworkers and leadership.

Snack Nation’s infographic revealed 36% of employees would give $5,000 a year in salary to be happier at work. Start boosting employee morale and happiness by following employee recognition best practices. With the right recognition program, your workplace culture and company’s bottom line will strengthen. Learn more about encouraging employee success by downloading our white paper: “The Total Package: Including Recognition in the Compensation Toolkit.”

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How to Identify and Retain Top Performers with Rewards and Recognition

Employee retention is a key goal for every company, but it’s important to drill down into this metric and make sure you’re doing a good job of identifying and keeping your top performers. These employees deliver 400 percent more productivity than the average worker, according to statistics published in Harvard Business Review (HBR). The researchers state, “Our workforce strategy goal should be to double down on retention tactics for high performers,” and further explain that, in many cases, managers aren’t meeting the needs of their top talent. The first step to nurturing your best workers is to make sure you know who they are; and a simple way to discover top performers is through rewards and recognition programs.

Look for active recognizers

The right rewards and recognition program can help determine top performers – but you may be surprised by which statistics you should look at. As to be expected, the hardest working and most talented people are likely to receive the highest amount of recognition from their supervisors. They are also likely to be recognized by their peers, since the ability to work well within a team is another important component of productivity. However, when you’re seeking out the truly top performers in your workforce, it’s also important to identify those who are most often recognizing others.

According to a recent Achievers study, employees who were promoted turned out to have a track record of actively recognizing their peers. In fact, before being promoted, these high performers sent an average of 3.8 times more peer recognition than the average employee. In this way, employee rewards and recognition programs provide two separate metrics for  identifying top talent: those who receive the most recognition, as well as those who give the most acknowledgments to others.

Tie recognitions to company values

Your organization probably took significant time and effort to craft a mission and values statement.  This statement is more than mere words residing on a wall, a website, or welcome pamphlet; it can serve as a dynamic tool for shaping your employee recognition program. By tying recognitions to your company’s core values, you can see which performers are embodying those values most authentically. This approach is sometimes termed “Management by Objectives,” and it feeds employee motivation by helping every member of the organization feel that their contribution is truly meaningful.

High performers have unique needs

The workplace factors that keep your super-skilled employees motivated are somewhat different from commonplace worker needs, and it’s necessary to be aware of these differences. While competitive salaries are important, HBR research points out that using regular compensation as a method of delivering employee rewards can potentially backfire and cause resentment among coworkers. On the other hand, high performers care significantly more than average about having their efforts noticed, recognized and rewarded. These rewards can be in the form of social or financial recognition, but in either case, your top talent is especially eager to receive praise, financial incentives and frequent feedback. This is another reason that if you’re in the habit of only providing annual or semi-annual evaluation sessions, the employee engagement levels of your top performers is likely to suffer.

Why you need to focus on high achievers

While highly skilled employees are slightly more satisfied with their jobs than the average worker, one in five say they’re likely to leave their current position within the next six months. Furthermore, if and when your top employees do decide to move on, their skills will lead them to easily find new opportunities. Given the high levels of productivity and the contributions these extra-competent workers make to the workplace environment, losing even one of them can be a blow to your company.

Help your top performers fulfill their potential

Employee retention is only one of many reasons that HR professionals and managers should invest in the effort to nurture high achievers. Equally important is  assisting in their career growth and providing them with development opportunities to help them reach their full potential. A major component of nurturing employee success is to  ensure tasks remain challenging and varied. High achievers “live for the challenge,” and seek to overcome obstacles and solve problems as a source of personal accomplishment. So make sure to provide them opportunities to stretch themselves through varied and challenging assignments.

Employee recognition best practices dictate that recognitions will be most meaningful to these talented workers if they reflect on an achievement that was truly praise-worthy. High achievers are tireless, curious, full of passion, and internal drive. If they’re recognized they want it to be for something substantial and worthwhile. In other words, don’t praise them for minutiae such as arriving on-time or keeping a clean work area. Instead, provide detailed and specific feedback that focuses on the positive impact they are making through their diligence and pursuit of excellence.

The right HR technology can be your ally

Identifying top performers can help your organization discover who your most engaged employees are (and vice versa), allowing you to effectively leverage their skills and enthusiasm as a positive force in the workplace. HR tech is steadily evolving, and data gleaned from a cutting edge rewards and recognition platform can now provide you with valuable insights to help you identify and retain your top performing employees.

To learn more about how employee recognition can help you identify and retain your top talent, as well as having a positive impact on your entire workforce, download our eBook: The Ultimate Guide to Employee Recognition.

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