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  • In today’s job market, employees have high expectations for employers beyond benefits and compensation packages. In addition to competitive compensation, employees desire a workplace that values and respects them and prioritizes a positive culture. Employees are quick to switch jobs if they encounter a negative or toxic work environment. To attract and retain top talent, it’s vital that, as a business owner, you understand what employees are seeking to address any issues preemptively.

    Employees seek out companies whose actions align with their communicated values. In other words, if you say work-life balance is essential, but the level of work assigned requires regular overtime, or you preach education as a company pillar but rarely offer training or pay for external certifications, your values and actions are misaligned. Employees will take this to heart, which can negatively affect morale, productivity, and more.

    Strong Company Cultures

    Company culture may seem abstract however, there are tangible ways it impacts your business. Company culture is a work environment’s shared values, attitudes, behaviors, and standards. It describes not only your staff’s experiences but also how customers experience your brand.

    Positive cultures tend to include:

    • Clear and open communication. Between employees, across departments, and with management – open and non-ambiguous communication is a critical factor for a healthy culture. Managers should offer plenty of opportunities for their team to provide feedback and be readily accessible to help guide employees and provide clarity when needed.
    • Professional development opportunities. In addition to open communication, companies with positive company culture offer employees the opportunity to grow professionally. Access to training, education stipends, mentorship programs, and other resources can help employees to succeed. In addition, communicate a defined process to the team that explains how employees can get promoted or receive a raise.
    • Collaboration mindset. Positive cultures allow plenty of opportunities for teams to collaborate. Although rewarding individual contributions is essential, a positive work culture fosters a deep sense of belonging through consistent collaboration with peers and across departments. Individuals who feel supported and part of a team often experience more job satisfaction, which boosts productivity and retention.
    • Defined purpose and core values. Core values should be purpose-driven and align with long-term company goals. For example, environmentally conscious companies may aim to become carbon neutral by a specific date – their decisions and actions on a small and larger scale are then all informed by this value. Positive cultures have a clearly defined purpose and core values are easily accessible to employees.
    • Intentional focus on boosting morale. Positive work cultures aren’t built overnight. There is a careful strategy behind them. Leadership plays a critical role in building and maintaining a positive culture, from hiring staff that aligns with company values to creating opportunities for team bonding and implementing recognition and reward programs.
    • Employee recognition. Recognizing the achievements of individuals and departments is essential to a healthy work environment — monetary rewards, public recognition during meetings, a social media post, bonus days off, etc. Positive cultures value acknowledging the efforts of the team regularly.

    Negative Company Cultures

    Even if your company has one or several characteristics of a positive culture, your business might still struggle with culture. Generally, you can identify the health of your work environment by looking at employee engagement, productivity, turnover, and absenteeism. Ensure you look at historical data to identify abnormal spikes and patterns. Suppose a specific team or role has a perpetual turnover or struggles with productivity. In that case, it might be time to carefully examine the team manager, offer additional leadership training, or restructure the role.

    Another way you can assess your work culture is by how often your team stays late, skips lunch breaks, or works on the weekends. When staff consistently work overtime, they likely have too much on their plate and need additional resources to accomplish their tasks. When overtime becomes a pattern, employees can suffer from burnout and increased health issues, which can ultimately affect your bottom line.

    Furthermore, conducting surveys and feedback sessions can offer valuable insights. These should include questions about job satisfaction, relationships with managers, and perceptions regarding the company’s values. When employees leave your organization, ensure exit interviews are part of your off-boarding process. While regular feedback sessions with current employees are helpful, individuals who are leaving may feel able to offer more honest answers.

    Align Your Actions And Values

    Creating a positive culture takes work. You need to establish your values and create a clear implementation plan. Ensure you include your team in decisions affecting their day-to-day and implement their ideas when possible.

    In addition, make sure your leadership team is embodying your values. If collaboration is something you value and there’s a lot of unhealthy competition within a particular department – investigate where that is coming from. Train your managers regularly so they don’t inadvertently promote behaviors misaligned with your values and know how to interrupt them as they arise.

    GMS Resources

    Your employees are your biggest assets, and investing in creating a strong work culture, ensuring your team is engaged, valued, and supported will positively impact your business in the long run. Partnering with a professional employer organization (PEO) like GMS can allow your small business to offer competitive benefits so you can attract and retain top talent. Beyond benefits, GMS can also help you assess your company’s HR practices.

    Ignoring the need for effective HR management is a recipe for disaster. Deficiencies in any HR function, such as payroll, workplace safety, or performance management, could result in the following:

    • Non-compliance fines
    • Miscommunication between departments
    • Slow productivity growth

    Inefficiencies in your HR processes can lead to unforeseen costs that weigh heavily on a small business. PEOs like GMS can perform human resource audits to review your current HR policies, procedures, documentation, and systems. By conducting an HR audit, we can help your business reduce costs and improve its HR functions in a fraction of the time. In addition, HR audits can help assess compliance with ever-changing rules and regulations to minimize legal and regulatory liability.

    Let us help you maintain or improve your competitive advantage. Connect with an HR expert today!

  • 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!