Why You Can't Afford to Ignore Company Culture
Corporate culture is essential for business success and shouldn’t be considered optional; especially in today’s ever-changing competitive landscape. Yes, upfront you will need to invest in a strategic culture shift program, however, over time, that investment will reap massive benefits… from higher profits, productivity, retention and engagement. Instead of focusing on the cost of developing a strong culture, let’s look at the cost of not developing one.
- Decreased Productivity - A lack of clear direction, purpose, or value can make employees feel like they don’t have an impact on the organization as a whole and lead to decreased productivity. Studies show that employees who understand their purpose are more likely to be engaged with their work and put in extra effort when needed. In fact, according to Gallup, companies with highly engaged employees outperform those with low engagement by up to 202%. That's a huge potential loss for businesses that choose to ignore their company culture!
- High Turnover Rate - If your company culture isn't up-to-par, you'll find yourself dealing with high levels of turnover—and that can get expensive quickly. Not only do you have to pay for recruitment costs, but there are also training costs associated with onboarding new staff members every few months. On top of this, you may experience “brain drain” as experienced workers leave and take valuable knowledge with them—which means your team starts over from square one more often than necessary. According to SHRM, replacing an employee can cost anywhere from 50%-200% of their annual salary (costs vary depending on the role). Don’t let your company become another statistic!
- Low Morale & Job Satisfaction - It goes without saying that people want to work in an environment where they feel valued and appreciated—but low morale and job dissatisfaction will occur if no company culture exists. This leads to increased absenteeism, poor performance reviews, and less motivation overall—all three of which can cost your business money in terms of lost productivity and missed deadlines or goals. As famed motivational speaker Zig Ziglar said: “People don’t care how much you know until they know how much you care." Show your team that you do care by investing in a strong workplace culture!
Investing time into developing a strong workplace culture isn't just about making sure everyone is happy; it's about ensuring your business stays competitive and financially secure for years to come. Without a well-defined company culture, businesses risk decreased productivity rates due to low morale, high turnover rates due to job dissatisfaction, and missed goals due lack of motivation from employees—all things that will eventually cost them money in the long run if left unaddressed. So don't wait until it's too late; start creating an amazing workplace environment now! With the right focus and effort, over time, you'll be able to build a high-performing workplace that people love.
How We Can Help
Company culture is our top priority. In our flagship Leadership & Culture Shift program, we help companies build a more attractive culture, and shift from a non-existent or toxic culture to a purpose-driven one. We have a 6-Step Process to help position your company for higher levels of purpose, performance, growth and impact. Contact us to learn more.
Here’s to creating your Culture Shift!
Betsy Allen-Manning | Founder, Corporate Culture Training Solutions
