As organizations navigate the new world of work, several employment trends have emerged: the Great Resignation, quiet quitting, and “rage applying.” The latter is the newest TikTok trend that involves applying to multiple job openings out of frustration toward one’s work.
Despite these challenges, employers understand their workforce’s need for more flexibility. As of June 2023, data from Forbes tell us that 12.7% of full-time employees work from home, while 28.2% work a hybrid model (on-site and remote work).
These statistics show that flexible work arrangements are key to attracting and retaining top talent.
But even with flexibility, company culture can affect employee experience and well-being. After all, an unhealthy organizational culture could force people to find a better work environment. If you’re working on improving retention and employee wellness, here’s what you need to understand about company culture and how to improve yours.
What is Company Culture?
Company culture describes how everyone in an organization works to achieve its goals. It influences people’s attitudes and behaviors in broad and different ways.
Organizational culture has certain standards that establish what’s right and what’s unacceptable. A culture that aligns with personal values, drives, and needs lets employees direct their efforts toward a shared purpose and contribute to company growth.
Finally, company culture adapts to change. Instead of having top management devise strategies, culture aligns with a workforce’s capabilities and experiences.
Below, we’ve listed some key characteristics of good company culture:
- Shared - Culture exists within a group and in its collective behaviors, values, and beliefs.
- Pervasive - Culture spreads through multiple levels and, sometimes, defines a company. Shared behaviors, values, and physical environments show a pervasive culture.
- Enduring - Organizational culture can shape people’s views and actions over time. It evolves as significant events happen within the group.
- Implicit - Most people are unaware of culture but can acknowledge and respond to it naturally. This makes company culture implied.
Why Does Company Culture Matter?
Organizational culture is crucial to employers for these reasons.
Culture Connects to Business Performance
According to McKinsey, companies with a strong culture gain a 60% higher return to shareholders than median firms. These employers also outperformed organizations with a weak company culture by 200%.
Company Culture is Distinct
Innovation is swift, making products and business models easy to copy. Succeeding in a fast-paced, ever-changing market takes an agile company culture that responds quickly to change.
Healthy Cultures Help Companies Embrace Change
Culture is also crucial in an ever-evolving world, as it helps businesses adapt to change and succeed in the long term. Undesirable company cultures react differently to change, after all. As McKinsey reports, 70% of organizational shifts fail, and a weak culture accounts for 70% of those problems.
Businesses with Unhealthy Cultures Can Underperform or Fail
Ultimately, an unfavorable company culture translates to poor business performance. It could keep even the biggest businesses from thriving in this new world of work.
How Can You Improve Your Company Culture?
Here are six strategies to consider:
Show Your Employees You Care
As economic uncertainty looms in 2023, organizations must re-evaluate their people management approach. In the end, employers who prioritize their workforce needs will come out on top amidst the economic challenges.
Showing employees you care about them can contribute to a healthy culture and pull you ahead of the competition. You can do this by putting employee well-being first, promoting diversity, equity, inclusion, and belonging, or helping local communities.
Help Team Members Grow & Perform Better
A survey of 1,300 C-suite executives identified attracting and retaining talent as a company’s biggest challenge in 2023 and beyond. Your team members can take steps toward professional growth by offering the following opportunities:
- In-person training
- Courses related to an employee’s specific skills
- On-the-job experiences
- Mentorship
Then, track and measure their performance with an effective performance management system. It should help employees set career goals and consistently deliver their best work.
Offer a Good Experience, On-Site & Online
Hybrid is here to stay, so companies must keep exploring and testing approaches that contribute to building a sustainable hybrid workplace.
In 2023, leaders must create exceptional employee experiences aligned with their workforce’s needs. This means they must choose how to deliver the best virtual and in-person experiences. Your strategy can involve getting employee feedback from pulse surveys, encouraging communication between managers and workers, or rethinking employee development for your workforce.
Acknowledge Everyone’s Efforts
Success doesn’t happen overnight. Still, all the little wins deserve recognition.
Acknowledge employee efforts and contributions when and where they matter. Team members perform and connect better with their colleagues whenever you appreciate their efforts and give recognition.
Let Your Employees Give Feedback
A company receptive to change will come out on top. Weekly checkpoints, avenues for public or anonymous feedback, or similar methods give everyone a voice. Ultimately, they help create a healthy work culture.
Employee feedback lets you uncover and address deep-seated issues. Conduct pulse surveys to know how team members feel about your organization. Some survey tools, like Sprout Pulse, feature analytics to help you make data-driven decisions.
Promote a Healthier Lifestyle at Work
Overlooking worker well-being is easy. But did you know that healthy employees create a healthy organizational culture? Happy and motivated workers feel more positive and will communicate with their peers and leaders.
Improving your company culture through employee well-being starts with effective wellness programs. They can include physical activities, stress management, and mental health consultations.
Achieve Long-term Success with a Strong Company Culture
Flexible work arrangements have become the norm in the post-pandemic era. But to truly succeed in the supercharged hybrid landscape, companies must strengthen their work culture.
Elevate your workplace’s employee experience today. Be change-ready by leveraging the most trusted HR platform, and book a consultation here. You can also check out more actionable tips and insights from the Sprout blog.
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