What defines a healthy organizational culture? In survey after survey, leaders answer that question much differently than their juniors. Perhaps a better question is what elements of company culture are the most important to employees?
It’s no secret that there is a competitive war for top talent right now. Across industries, leaders agree that one of their toughest challenges is attracting and retaining talent in this era of the Great Resignation. While leaders are focused on employee retention, the research is clear: employees are evaluating the culture of companies they decide to leave or join.
Culture is more than all-you-can-eat cereal bars, ping pong tables, and Frisbee Fridays. It isn’t what is written down in the employee handbook or posted on the wall in the break room.
Whether it’s putting people over profits, adopting an “open to change” philosophy, prioritizing learning and collaboration, or building an organization with a growth mindset, a healthy company culture does more than create a pleasant work environment.
It also helps attract and retain the kind of job candidates that will help the organization grow and continue to succeed.
Another study found that the strongest predictor of employee satisfaction is company culture and values followed by quality of leadership (second predictor) and career opportunities (third predictor).
In any place of business, a great company culture should be the foundation upon which employees develop and thrive. An organization’s culture encompasses the values, ethics, norms, and behaviors that impact everything from its public image to employee engagement and retention. And yet, with all of the emphasis on company culture, there is one aspect that is often overlooked. Companies with a healthy culture have highly engaged employees, positive workplace morale, and collaborative team dynamics – all of which respects, acknowledges, and inspires individual contributions.
- Do people feel their work matters?
- Are they making a difference for the organization?
- Are they respected for their contributions?
- Are they empowered and inspired to grow, be creative, and challenge the status quo?
How people feel about their jobs is the sum of all the formal and informal systems, behaviors, norms, and values that create an experience for employees. Simply, organizational culture defines how work gets done… and it has a direct impact on how the outside world perceives your brand.