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  • As a leader, you have to make many decisions that steer your business toward your strategic goals. However, inspiring your staff to align with your vision and perform accordingly, especially during high-pressure or stressful moments, can be challenging. While a motivational speech during an all-staff meeting can provide some inspiration, the true key to success lies in a deeper examination of your organizational culture.

    Organizational culture is not just a concept; it’s embodied by every member of your staff and guided by leadership. Though it may seem difficult to assess, several indicators, such as attrition and engagement rates, will help determine whether your work culture is positive or negative.

    What Is Organizational Culture?

    Organizational culture is the “personality” of your organization. It’s the shared set of values, beliefs, attitudes, customs, and behaviors that characterize how individuals within your organization interact with each other, as well as how they interact with external stakeholders such as customers, suppliers, and the community.

    Organizational culture heavily impacts the success of your business. Companies with positive cultures report a 72% higher employee engagement rate than companies with dysfunctional or negative cultures. A poor culture can lead to staffing, morale, and employee satisfaction issues, which can bleed over into productivity issues, impacting your bottom line.

    The good news is that organizational culture is not static; it can evolve and change over time due to various factors, including leadership changes, market condition shifts, mergers and acquisitions, and deliberate efforts to change the culture. Having a poor organizational culture doesn’t mean your business is doomed. There are tools you can implement that can make significant shifts throughout your business. The key is to remain vigilant.

    Why Does Organizational Culture Matter?

    Positive cultures exhibit greater resilience, reduced burnout, and lower attrition rates, leading organizations to prioritize culture and, therefore, consistently outperforming their counterparts. Additionally, investing in company culture saves time and money on recruiting and hiring. In the ever-competitive job market, attracting top talent can be difficult. As a business owner, to remain competitive, you’ll need to harness various strategies to attract and retain your team, and culture is a significant player. In fact, it’s so important that nearly half of the US workforce is willing to take a lower-paying position at an organization with a positive culture than a high-paying job at a company with a poor culture.

    In other words, work culture is critical in hiring and retention efforts, as employees who feel fulfilled and supported are more likely to stay at an organization. Prioritizing and cultivating a positive organizational culture is essential for enhancing employee well-being, performance, and a strategic advantage that can positively impact your company’s bottom line.

    What Makes A Good Organizational Culture? 

    A strong organizational culture is a culture that promotes a positive work environment, encourages collaboration and innovation, and supports the well-being of its employees. Fundamental elements that contribute to an excellent organizational culture include:

    Respect and trust

    Respect and trust go hand in hand. You can demonstrate both through various avenues, including regularly recognizing employees’ efforts and actively seeking their thoughts and input. Implementing workplace flexibility, which allows employees to set their schedules, work remotely, or offer unlimited time off, is another way to demonstrate respect and trust. This empowerment not only strengthens the bond between employees and your organization but also promotes a sense of autonomy and accountability that can lead to enhanced productivity and job satisfaction.

    Accountability

    A culture of accountability is a fundamental aspect of any successful organization. It extends to everyone in your company as individuals are held responsible for meeting their commitments. This fosters a sense of responsibility and trust among employees and across teams. When everyone is accountable for their own contributions, it promotes a healthy work environment where people can rely on each other to deliver on their promises. This, in turn, leads to increased efficiency, improved teamwork, and a greater likelihood of achieving organizational goals.

    Psychological safety

    Psychological safety in the workplace is vital to fostering a culture where innovation can thrive. Employees should feel empowered to take risks and get rewarded for generating new ideas that align with company objectives. Psychological safety encompasses creating an environment where open and honest feedback is not only encouraged but also valued, regardless of the direction it flows—from team member to team member, from team member to manager or leader, and vice versa. Cultivating these safe spaces enables employees to voice their concerns and share their ideas freely while fostering positive relationships. This, in turn, contributes to higher employee engagement and overall job satisfaction.

    Alignment with business objectives

    A strong culture has a clear set of values and a well-defined mission that guides the organization’s purpose and direction. Regularly communicating your values and mission to all employees through various channels is important. Use company meetings, internal newsletters, intranet platforms, and other communication tools to reinforce these messages.

    Performance driven

    Cultivating a high-performing culture is achieved by making strategic investments in your team. This involves prioritizing professional development, providing training opportunities, and recognizing and rewarding employees for their valuable contributions and achievements. When employees sense this investment in their growth and well-being, it naturally boosts their engagement, resulting in improved performance. Empowered employees who feel supported by leadership are more inclined to go the extra mile and exhibit resilience in the face of challenges. This empowerment ultimately contributes to enhanced overall performance within the organization. Creating and maintaining a good work culture requires consistent effort and attention. While some universal principles can serve as a solid foundation for a healthy and productive work culture, customization to fit your organization’s specific needs and values is crucial. Regularly assess your employees’ needs, engagement, and productivity levels to determine which areas need attention.

    How Leaders Influence Culture

    Leaders play a crucial role in shaping the culture of your organization. They ensure your employees understand your company’s mission, vision, and purpose and how their individual roles contribute to your business’ success. In addition, leaders act as beacons during challenging times or moments of distress. How you and your managers respond in high-pressure situations will significantly influence your team’s reactions. Put simply, whatever behavior your leadership engages in, positive or negative, your staff will follow suit.

    Leaders can effectively influence culture through a few core principles:

    • Integrity: Leaders must align words with actions. For instance, if you claim to trust your staff but micromanage or redo their work consistently, your words and actions don’t match, which can lead to frustrated and disengaged staff.
    • Fair treatment: Cultivating a culture of engaged employees necessitates setting aside any favoritism. While it’s important to recognize and reward good behavior and accomplishments, it’s equally crucial to prevent the formation of exclusive cliques within your organization.
    • Approachability: When your staff recognizes you as a dependable resource for support or guidance, they will be more likely to come to you with innovative ideas. Being approachable helps your team trust that you’ll take their thoughts, concerns, or issues seriously, which can significantly impact their overall engagement and job satisfaction.
    • Humanizing employees: Humanizing your staff is not only common sense but also crucial for building the rapport critical to a positive work culture. Treat your employees as individuals with unique backgrounds and aspirations. Taking a genuine interest in their well-being demonstrates that you care about them as people.

    These core ideas should guide you and your leadership team’s actions and behaviors, which the rest of your staff will adopt.

    HR Audits

    Assessing your company culture is no easy feat. Partnering with a professional employer organization (PEO) like GMS can help. Through our human resource audits, we can help you find areas that need assistance and even help create strategies for you to implement with your team. As your company grows, HR audits can help identify the strengths and weaknesses of your processes to ensure your efforts align with your organization’s strategic plan. Contact us today, and let us help you reach your business goals!

  • It’s no surprise that businesses faced an onslaught of challenges in recent years. From the ongoing COVID-19 pandemic to The Great Resignation, employers needed to adapt in order to maintain a positive, efficient working environment.

    The future of work is rapidly evolving, and those same changes have led to new human resource trends geared toward addressing employee retention, operational efficiencies, and other critical issues. While many of these trends were created by trying times, they now provide employers with new opportunities to strengthen their business.

    Let’s break down some of top HR trends for 2022 and how you can apply them for your business.

    Hybrid Working Arrangements

    While the pandemic necessitated many businesses to utilize remote working arrangements, the demand for telecommuting isn’t slowing down. According to a WeWork survey, “75% would give up at least one benefit or perk for the freedom to choose their work environment.”

    That desire for flexible working accommodations is attractive for both current and future employees – and an important focus for many businesses in 2022. That same WeWork survey found that nearly 80% of C-Suite employees would allow workers to split time between traditional office space and remote working as long as their jobs didn’t require them to always be on premises.

    What does this trend mean for your business? Hybrid working arrangements are becoming the norm. A flexible work environment directly impacts employees’ wellbeing and helps keep them engaged. Now that employees and businesses have found that they can both succeed remotely, companies must either pave the way for remote work or compete against other employers that provide that level of flexibility.

    Of course, there are some steps employers and HR teams need to take in order to transition to a hybrid workplace. The following steps are all essential parts of a hybrid working arrangement.

    • Identify which staff is eligible for hybrid work (and to what extent).
    • Enact a work from home policy for proper social distancing, measures for dealing with any exposures, and any other relevant procedures that employees should know.
    • Ensure your office is tech-ready for remote work. This process includes setting up Virtual Private Networks (VPN), preparing work devices for at-home use, and enacting strict cybersecurity measures.
    • Use communication channels available to both on-site and remote workers to communicate and share information consistently among all employees.

    Reskilling, Upskilling, And Flexible Development

    Work environments aren’t the only part of your company that may need to adapt. The people within your organization will likely need to evolve as well.

    According to Gartner, “nearly one in three skills that were needed for a job in 2018 will not be needed by 2022 – and that the average number of skills per job is increasing steadily.” Between new workplace technology and greater internal needs, 2022 is an important year for skills-building. Here are a few ways that businesses can help employees develop in 2022.

    • Invest in training programs to help reskill and upskill employees.
    • Allocate an education and improvement budget for employees to purchase books, attend events, and pursue other learning opportunities.
    • Set company-wide learning goals and tie them into your business goals.
    • Encourage peer learning so that employees can share their experience and abilities with other and help each other grow.

    These measures have dual benefits. First, employees will be able to learn the skills required to stay efficient and effective. Second, a dedication to reskilling and upskilling individuals shows workers that your business is invested in them. In turn, these efforts can help improve the employee experience and keep them engaged.

    Leadership Training And Internal Mobility

    Talent retention has been critical for a long time, but the aftermath of The Great Resignation has spurred more businesses to put measures in place to keep top employees. That desire to retain and train key workers is why more employers plan to focus on developing leadership training and an internal mobility program in 2022.

    There are plenty of practical benefits to hiring internally – lower costs, shortened onboarding times, etc. A true leadership and internal mobility program takes those benefits to the next level. Businesses can utilize training programs, upskilling initiatives, and leadership coaching to turn high-value employees into decision makers who are invested in the process.

    Employees can also see the value in leadership and internal mobility initiatives. This practice allows employees to give employees a clear means to advance their careers within the company and become future leaders. This ability to grow and attain long-term career goals is a great retention tool that can help businesses retain more top talent in 2022.

    Embracing Data Through People Analytics

    Business technology grows more sophisticated each year, and people analytics and other data-driven initiatives are set to be a big opportunity in 2022. The adoption of new digital tools are giving businesses the ability to use existing data and make informed decisions. There’s just one big problem – most businesses don’t quite know how to properly use that data.

    According to Deloitte, nearly three quarters of companies view people analytics as a high priority, but less than 10% have usable data or know how apply that information. Fortunately, new technology can help make data more accessible.

    A good HRIS system and other increasingly popular HR solutions have made it easier for businesses to track data. For example, the following metrics are hugely beneficial when it comes to talent management and overall operational improvement:

    • Revenue per employee
    • Cost per hire
    • Average time from candidate application to employment offer
    • Early turnover rates
    • Annual absenteeism rate

    Increased Automation Efforts

    Another major advantage of improving technology is that it’s now easier for businesses to automate various processes than ever before. There are several HR functions and other internal business needs that require a lot of manual labor. Automating different workflows, communication efforts, and other components of your business is a simple way to improve efficiency for you and all your employees.

    Automation can also do more than just save time. An HRIS and other computerized tools can gather more data than what is possible through manual means. Meanwhile, automated HR tools limit the opportunity for human error, which is especially important for payroll tax compliance and other regulatory concerns. These benefits are why the following types of HR automation tools should continue to grow in popularity in 2022:

    • Payroll tax automation software
    • Online employee onboarding processes
    • Open enrollment portals
    • Time tracking and scheduling systems
    • Instant manager approvals
    • Chatbot services
    • Data reporting, analysis, and alerts
    • Employee self-service capabilities

    Take Advantage Of New HR Trends With GMS

    Change is inevitable, especially when it comes to managing an efficient workplace. Between new regulations, cultural shifts, and other challenges, it’s not easy to stay on top of the latest news and HR trends.

    Fortunately, GMS is here to help business owners simplify their business and stay competitive. Our dedicated experts and cutting-edge HRIS technology allow us to modernize your workplace and keep you up-to-date with all the latest news and legislation. In turn, you can spend your time on growing your business while our HR professionals deal with payroll, benefits administration, and other time-consuming tasks.

    Ready to prepare your business for 2022 and beyond? Contact GMS today to have us take on your toughest HR challenges.