4 Ways Improving Company Culture Can Boost Your Revenue
Human resource divisions are tasked with not only finding suitable candidates for an open position, but also with ensuring that the new hire is a good fit in an existing, and evolving culture. This is because creating a productive workplace equates creating a profitable one.
According to Entrepreneur, companies that engage their staffs have a more committed workforce, workers that are satisfied with their jobs and therefore are more likely to stay, perform above expectations, and foster high morale among their peers.
The corporate culture is loosely defined as a unique working environment. When seeking to build the best company culture possible, many HR professionals agree that providing the right incentives and rewards enables team-building, recognition, and greater achievement. However, traditional top-down employee recognition programs are becoming a thing of the past. In their place are rewards programs that use a points system.
In this scenario, teams and individuals are aware of what is expected to win points and what the eventual rewards will be. These can range from a day off to a gift card. Standing out among their peers is also recognized a number of ways including receiving an impromptu ovation from co-workers for a job well done. The point is not to attract talent but to retain it and to support assimilation, collaboration, team building and innovation. It is these attributes that comprise today’s best company culture.
Environment is also important in the evolving workplace. Many of the top workplaces foster workplace attributes such as the concept of mixing work and play. An increasing number of breakrooms not only include modest kitchen facilities, but also game tables such as air hockey and pinball for a different form of team play. Here the concept is to allow team members to become comfortable with each other so they may reenergize and share ideas.
In The State of the American Workplace, a semi-annual poll conducted by Gallup, employee engagement is deemed vital to a company’s success. The study found that staffers whose engagement level was 75% or higher, were significantly more productive than their peers who were not as engaged. These achievers posted higher customer ratings, and had less absenteeism and turnover than those in the bottom percentile. According to a report on CBS News, employee turnover costs about 20% of a given job’s annual income to find and hire a replacement. National Business Capital has compiled the following list of tips to consider when team building within a corporate culture.
How to Build the Best Company Culture
Live Your Core Values
The concept of getting everyone to row in the same direction applies here. Know what your company’s purpose is, and instill its importance and values. This can take the form of a simple graphic, stating those values that may be displayed in the breakroom as well as in the boardroom.
Get with the Program
Achieving and maintaining morale may sometimes require thinning the herd. Those who cannot or will not meet corporate standards send a negative message to others. It is difficult to demand high standards from all yet allow some to repeatedly turn in a sub-par performance. The positive effect could be seen immediately in greater productivity from remaining staffers who appreciate that the bad apple(s) are gone.
Recognition and Rewards
It feels good to be recognized, influences others and inspires everyone to do more. The result is greater productivity. Another aspect of recognition that the Gallup poll revealed was that management who choose to focus on workers’ strengths, eliminate active disengagement.
Building the best company culture does not have to be a budgetary line item. It is important to note, especially for smaller firms, that incentives and rewards do not have to be monetary. A simple perk such as a management parking place for a month or even several free car washes is meaningful. A companywide email touting the staffer’s achievement is also great for morale. The fact is that employees who feel appreciated and valued are more productive and their contribution also contributes to a healthier corporate bottom line.
Resolve Issues Quickly
No company is Shangrila. Problems surface and must be dealt with as quickly as possible to avoid morale and productivity issues. A paper by the Harvard Business School recommends that these forums be conducted at least quarterly so that staffers see that their voices are being heard and that actionable progress is being made.
Tie Corporate Achievement to Team Accomplishment
In other words, deliver on your promises when staffers have delivered on fulfilling corporate objectives. If a promotion has been promised, and the goal fulfilled, act swiftly to make it happen. Nothing inspires like success. Move an achiever up through the ranks and others will
want to be the next to gain recognition. Productivity will likely increase as well.
By devising and supporting the best company culture possible, productivity and revenue could also increase exponentially. That provides a win-win for all parties.
National Business Capital is a leading alternative financing company. Our firm assists businesses obtain the additional capital their enterprises require. In this blog series we provide information of value to many of the industries that we serve. For business owners who may have questions regarding business financing, please contact our Business Consultants at (888) 888-9124 to learn more.