By Jennifer Floyd, President, HR Experts on Demand
Ensuring your people are engaged in your business is a vital ingredient to your company’s success.
Launched in 2016, HR Experts on Demand specializes in helping businesses succeed by leading them through identifying the best solutions for their HR needs. But those solutions start with employees — people — and underpinning it all is company culture. In fact, your culture may be the single most important factor determining your company’s success or failure, yet, too often, we find that companies have either ignored it or don’t even realize it exists. I’ve heard business leaders say, “we don’t really have a culture.” Yes, you do — it just may not be the culture you want.
What is company culture and why is it important? Simply put, it’s the “how we work” that gets the “what we do” done. More specifically, it is a widely shared set of beliefs, values and practices supported by a company. It’s the way a company empowers employees to handle an angry customer, how it responds to a workplace crisis, or how leaders address employee performance problems. When a culture is toxic, employees often engage in behaviors that negatively impact the business.
According to the Society of Human Resources Management, $223 billion were spent on turnover costs because of culture-related resignations. Forty-nine percent of employees have considered leaving their current company because of culture, and nearly 20% of the workforce has changed jobs in the last five years and cited culture as the reason.
Organizations that best prioritize culture start with establishing clear values and communicate them often, reiterating their importance continually to keep them front and center. Creating and maintaining a healthy, positive culture takes hard work and honest reflection from business leaders. The best tip for an executive team to establish a positive culture? Add it as a standing item on the staff meeting agenda — and ensure the topic never gets skipped.
People costs are usually the highest expense on the books. What better way to spend your resources than to tend to your most expensive asset? Discuss your culture with the same vigor and engagement you use in budget discussions and watch what happens.
Investing in a healthy culture is never wasted effort — it’s truly bottom-line impacting work.
This article first appeared in GSA Business Report's Book of Experts.