Having a positive company culture is vital in the success of an organization. In fact, when you look at top companies, a lot of them share a common trait, offering a positive work environment for their employees.
While workload can sometimes be stressful, having a positive work environment helps employees have greater resilience to job stress. Moreover, having a positive work environment offers a lot of benefits. This is why it’s important to know how to create a positive company culture.
While having a positive company culture helps an organization achieve ideal business results, having a negative to average company culture doesn’t offer much rewards. According to the book, Corporate Culture and Performance, company culture can increase revenue by up to 400%.
Here are the benefits of having a positive company culture:
- Improves employee retention
- Improves productivity
- Greater employee engagement
- More satisfied employees
- Healthier workforce
- Happier workers
Large companies like Google, Microsoft and Twitter offer unique employee benefits that help foster a positive company culture. Google provides free food, Twitter offers free yoga classes right around the work space and Microsoft offers designer office spaces conducive for productivity and collaboration.
But you don’t have to invest a lot of money just to achieve a positive work environment. In fact, even doing simple actions can have a great impact. Here’s how to create a positive company culture.
Begin with the Right People
With forming a positive company culture, you need to be mindful of the hiring process. You need to ensure that the candidates you bring into your organization can fit into the culture. Otherwise, employee conflict can arise.
Hire people with the right attitude and be patient with this process. It’s better to have no hire than a bad hire. According to the Undercover Recruiter, bad hires cost $240,000 in expenses related to hiring, retention and compensation.
Moreover, negativity is contagious. Workforce morale can suffer because of bad hires. These are the effects of low employee morale according to Michael Blankenship of Roberts Wesleyan College:
- Decreased productivity
- Increased rates of absenteeism
- Increased employee conflicts
- Increased customer complaints and dissatisfied customers
- Increased employee turnover rates
With trying to form a positive company culture, avoid potential toxic people at all cost. While talent matters, attitude matters more.
Recognize Employee Efforts
Recognizing employee efforts has a tremendous effect on employee satisfaction, productivity, retention and company culture. In fact, according to Gallup, one of the main reasons why workers leave their jobs is because of lack of recognition.
Recognizing employee efforts helps with building a positive company culture as it shows your appreciation of your workers. Moreover, recognizing employee efforts also improve productivity, increases employee motivation, cultivates a spirit of teamwork and helps increase profitability.
Call Your Employees By their Names
Another simple but proven effective strategy to foster a positive company culture is to call employees by their names. By knowing and calling employees by their names, it shows that you value them as it takes effort to remember peoples’ names.
Offer the Right Employee Benefits
Having good employee benefits matter a lot to employees. In fact, in the war for people, companies make use of offering competitive employee benefits to attract the best candidates.
Employee benefits is also one of the biggest reasons why employees leave or stay at their jobs. According to Patriot, employee benefits is linked to employee loyalty. Moreover, offering good employee benefits is good for the well-being of the workforce.
Employees can be less stressed thinking about their financial security when they are offered retirement plans, health insurance and other perks that can help them feel more with their finances.
Moreover, employee benefits can enable workers to have better work life balance. When employees have better work-life balance, they can have more time for their loved ones and themselves making them feel more satisfied and happy at work.
They can be more creative, more engaged, have better mood and be better with others when they have good health and well-being. This all helps build a positive company culture.
One of the worst things you can do to ruin a good company culture is to stress out your employees by micromanaging them. Micromanaging has detrimental effects not just on employee productivity but also on their well-being.
Here are statistics from a survey conducted by Trinity Solutions and Harry Chambers, author of “My Way or the Highway: The Micromanagement Survival Guide”.
- 79% of the participants experienced micromanagement.
- 69% mentioned that they considered changing their jobs because of being micromanaged.
- 36% changed their jobs.
- 71% of the respondents said that being micromanaged interfered with their work.
- 85% reported that being micromanaged had a negative impact on their morale.
Other than micromanaging, any type of overwhelming work stress needs to be addressed. Otherwise, it can spiral out of control and lead to serious health issues.
The negative effects of workplace stress doesn’t contribute to a positive company culture. Instead, it just ruins it. You can help employees in dealing with stress by educating them about it through seminars or by giving them advice on how to reduce and or eliminate stress.
By showing your support and valuing your employees, you gain their trust, loyalty and commitment. Developing and sustaining a positive company culture is all about winning the workforce.
This is the secret recipe top companies have been using. They know that for them to win the marketplace, they first need to win their workforce. Now that you know how to create a positive company culture, work hard to achieve it starting today.