Source : https://www.business2community.com/workplace-culture/why-organizational-culture-is-a-competitive-differentiator-02380369 Organizational culture doesn’t mean that you own the trendiest or coolest business — it means that you operate a positive workplace with a strong values and an even stronger identity, a place that drives business success. The key to organizational culture? Healthy and engaged employees who believe in their company’s core mission — employees who feel heard, are recognized, and encouraged to become the best that they can be.As you strategize new ways to build your company culture, take our top tips with you. Organizational culture can be your competitive edge and take your business to new heights. Did you know nearly half (45 percent) of workers say leadership is “minimally” or “not at all” committed to improving company culture?
The connection between organizational culture and business successHarvard Business Review released, The Culture Factor, a guide intended to help organizations better determine and shape their company culture in order to fit their strategy. The guide dives into how organizational culture drives core goals through specific beliefs and values, which in turn, influences employee behavior and activity. Having a culture strategy in place will provide employees greater clarity and focus, resulting in stronger productivity and business results. According to a Grant Thornton LLP and Oxford Economics study, executives who say their culture is extremely healthy are 1.5 times more likely to report average revenue growth of more than 15 percent over three years. In addition, among public companies, those with extremely healthy cultures are nearly 2.5 times more likely to report significant stock price increases over three years.
Companies clearly care about revenue and their people, but are likely not looking at culture as a way to grow both. This is short-sighted … Our study shows that, in fact, investing in culture can help companies grow and thrive financially, and keep employees for a longer time period.” – Erica O’Malley, Grant Thornton partnerOnce you develop a strong company culture, it will be easier to not only retain employees, but also attract new top talent. It is well understood that a high employee turnover is costly. According to Gallup, 51 percent of employees are considering a new job – which means that they’re not fully engaged in their current position; and as reported by the Center for American Progress, once an employee leaves, it can cost a company anywhere between 16 percent to 213 percent of that lost employee’s salary. Avoid the high cost of turnover by focusing on your organizational culture. After all, employees who don’t like their organization’s culture are 24 percent more likely to quit. Also, organizational culture plays a key role when it comes to attracting top talent. Currently, most job seekers are screening potential employers by their company culture with 46 percent of candidates saying they believe culture is very important in the application process and 15 percent of job seekers turning down a job offer because of the company’s culture. Don’t lose sight of the numerous positive benefits your business can gain from building a strong organizational culture.
Three pillars of a strong workplace cultureIt is well established that the companies who develop and maintain the strongest organizational cultures have much lower turnover rates and greater long-term success. In order to begin building a more defined, positive workplace culture, it’s important to consider the following factors.
1. Live and breathe recognitionEmployees desire recognition, and based on an Achievers’ study, 82 percent of employees wish they received more recognition and 90 percent say when they receive recognition it motivates them to work harder. Start recognizing and rewarding your employees on a regular basis to show frequent appreciation and reinforce key behaviors. In the same study, 92 percent of employees agree when they’re recognized for a specific action, they’re more likely to take that action again in the future. By recognizing valued employees, both the employer and employee benefit. The key is to reinforce positive behaviors and show appreciation on a frequent basis; as your employees continue flexing their strengths and feel ongoing appreciation, your business will grow as a result. Together, you can both succeed. If you’re a manager, it’s important to note that 58 percent of employees said their manager relationship would improve with more recognition. For example, after Discover implemented a global recognition program, powered by Achievers, the company saw sales, customer satisfaction, and retention improve. Joanna Kalantzis, Senior Manager of Internal Communications and Engagement and Discover stated:
“Our sales have increased, customer satisfaction has improved, and our voluntary attrition has decreased since the time of launching our Achievers platform.”Bottom line: Employee recognition drives employee engagement, and employee engagement drives business success.