By Roxanna Coldiron
Let’s imagine two companies: Company A and Company B. Company A suffers from high levels of turnover, a lack of employee loyalty, and increased costs in both production and human resources. Everyone on the team is new and has no idea what to do. The productivity of the company begins to take major hits.
Company B does not have this problem. Instead, Company B’s employees enjoy coming into work and believe in the company’s mission and goals. Company B always has enough employees to meet demand for their products and services, and the employees know that they will be rewarded well for their contributions.
What makes Company B stand out from Company A? The global market is extremely competitive. Growing companies cannot meet their demand if they don’t have enough trained workers to create the supply.
But people are not going to stay with a company that does not value their work. High turnover can often lead to higher costs for businesses, and the best way to retain majority of your employees will be through something called “company culture.”
Good company culture equals better retention
Companies that have good company cultures experience lower levels of turnover. According to a Columbia University study, the turnover rate is only 13.9 at organizations with higher job satisfaction. Organization with poor company cultures see a turnover rate of 48.4 percent. Unhappiness and stress can lead to apathy toward the employer and make it much easier for workers to leave for better jobs and improved work environments.
Employee happiness also makes good fiscal sense. The Department of Economics at the University of Warwick found that happier employers will work 12 percent more than the average worker. In contrast, disaffected workers can cost the U.S. economy a whopping $300 billion a year. Fortune Magazine’s survey also discovered that organizations with great company cultures also see impressive market gains.
So, if culture is so important, how do we define it? Think of culture as the combination of things that make up the atmosphere of your company. Employees want to know that they can ask questions, give suggestions, and be recognized for their work. They have to matter to the organization. The first step toward developing the type of culture that keeps employees is valuing the employees and their contributions. But the organization has to find ways to show that they value their workers.
Developing a company culture
Great company culture goes beyond ping pong tables and casual Fridays. Find new ways to benefit your employees. Do they have student loans to pay off? Consider providing student loan repayment assistance. Do some of your employees have young children? Maybe an on-site daycare or a daycare allowance would go a long way. Flexible scheduling policies can also work for employees who have families or other activities outside of work.
To determine what your employees need, go straight to the source. Ask them through employee engagement surveys and always follow up with action on those items that you can. Incorporate more employee recognition into the workplace. Reward employees for their service. Measuring the success of your company culture will mean taking a look at productivity levels, turnover rates, and employee surveys. It can take time to create the perfect company culture, but it’s worth it for the success of your organization.
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