Posts Tagged ‘company climate’

The Value of a Strong Company Culture

Thursday, July 6th, 2017

We hear the phrase “corporate culture” in conjunction with any description of any business these days.  In fact, the phrase is so commonplace it sounds less and less important the more it is used.  Still, those responding to the aforementioned survey all agree that workplace culture is an extremely important component in the success, or failure, of a business.

A 2016 survey from the Workforce Institute at Kronos and WorkplaceTrends concluded that HR professionals, managers and employees are not in agreement when it comes to who actually has the power to create, influence or destroy corporate culture.  The survey included 600 HR professionals, 600 managers and 600 non-managing employees across the U.S. workforce.

Most of us are aware of the perils of a negative corporate culture when we read about yet another company who gets it wrong. When there are multiple and frequent changes in leadership style combined with a creating  a culture so focused on success at any costs, quality and ethics can be sacrificed and trust within an organization spirals downward. 

Netflix is know for getting it right. They promote a corporate culture built on trust and a certain amount of autonomy among its employees.  When the company shifts focus or enhances their product offerings, employees are immediately on board and driven to be a part of its success.  

So, who should be responsible for defining corporate culture? Thirty-three percent (33%) of HR professionals surveyed believe HR should define corporate culture. Twenty-six percent (26%) of managers felt the executive team should define the corporate culture, while 29% of employees surveyed felt they should define the corporate culture.  Strangely, another 28% of the employees felt that no single group actually defines the culture in the workplace. 

Employees ranked the three most important factors impacting corporate culture. Fifty percent (50%) felt compensation was the #1 factor.  Number two (#2) was co-worker respect and support, and #3 was work-life balance.  However, only 29% of managers and 25% of HR professionals felt compensation would be the #1 factor to impact corporate culture. 

HR professionals responding to the survey felt the #1 factor would be “managers and executives leading by example,” followed by #2 “employee benefits”, and #3 coming in as “a shared mission and values.” 

Assuming this survey is representative of corporate America across the board, perhaps the truest answer and most successful strategy for defining corporate culture is for all three groups to work together.  Corporate culture is an important recruiting and retention incentive.  Likewise, the wrong corporate culture will impair your recruiting efforts and drive away your existing employees.  Collaboration across the employee, management and Human Resources components of your organization is key to creating a corporate culture which appeals to your employees, can be fostered by your managers, and can be supported by HR. Work together to stand united and to create a stronger brand for your organization.

CAI delivers HR, compliance, and people development solutions to 1,100+ NC companies to help them build engaged, well-managed and low-risk workplaces. Contact us to find out how we can help your company.

CAI’s Advice & Resolution Advisor Renee Watkins is a seasoned HR professional with a diverse background in Human Resource. Renee provides CAI members with practical advice in a wide range of human resource functions including conflict resolution, compliance and regulatory issues, and employee relations.

 

Photo Credit: Pixabay