(Last edit 2/09/2024)
“Customers will never love a company until the employees love it first.” - Simon Sinek, Author, Start with Why
What is organisational culture?
Organisational culture refers to the underlying values, beliefs, and practices that shape how a company operates and how employees interact, influencing everything from the everyday perks like coffee quality to the processes for giving and receiving feedback.
Organisational culture is like a company's personality, affecting how people act, work together, and view the organisation.
Ideally, every employee should know what the company wants to achieve and how it wants to do it. Therefore, these organisational goals must align with the employees' individual goals. Employees must believe that organisational growth will result in personal growth and development.
Company culture can differ significantly between organisations. Some companies foster a team-oriented environment with mandatory participation at all levels and a flat management structure, while others might prioritise a more relaxed and informal workplace with fewer rules and regulations, like Google. In contrast, traditional and large corporations often adhere to a more conventional cultural approach, characterised by established management tiers and formal hierarchies, though these practices are increasingly evolving in a global context.
Why is organisational culture important? 5 essential questions you need to ask!
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1. Defines your company's identity
How does your organisation conduct business and interact with the outside world, including customers, stakeholders, and employees?
2. Improved the quality of work
How satisfied are your employees, given that their satisfaction directly impacts their productivity, efficiency, and, all together, your competitive advantage?
3. Reduced turnover
How can you better align your employees with your company culture to boost motivation, loyalty, and job satisfaction, while also reducing turnover costs and enhancing your company’s image?
4. Greater teamwork
How can you strengthen your organisational culture to foster cohesive teams and encourage honest, productive interactions, so everyone understands their role and can rely on their colleagues to perform well?
5. Attract top performers
How can you ensure your company values and growth opportunities are clearly communicated to attract the best performers on the market?
How to Improve Organisational Culture
Establish clear and defined company values and goals.
How often do you hear the question, “Why do you want to work here?” during job interviews? It’s quite common because recruiters want to determine if a candidate, regardless of their talent, aligns with the company’s values. Clearly communicating your organisational values and goals to every employee is essential. It shapes how your employees perceive the company, its boundaries, and its expectations. During the recruitment process, selecting candidates who align with the organisation’s values and mission is crucial. When employees’ goals align with the company’s objectives, they are more dedicated and motivated to achieve them.
Offer work-life balance and flexible working hours
Recent studies reveal a 70% boost in productivity for companies that embrace flexible working practices*. With younger employees increasingly valuing creative freedom and a balanced work-life dynamic, flexibility has become a must for leading companies like Google and Thomson Reuters.
Traditionally, many organisations have imposed rigid work schedules, expecting employees to adhere to long hours at their desks with limited creative freedom. However, modern companies have discovered that allowing employees to manage their own time and balance work with personal activities leads to better results. By supporting practices such as early departures for personal commitments, casual dress days, and allowing time off for birthdays, companies can enhance employee satisfaction, motivation, and overall well-being.
*Source: Harvard Business Review
Promote trust
Building trust in your work environment is crucial for a successful organisational culture. Conflicts will naturally arise, but how you handle them will define your culture. Resolve conflicts immediately and fairly to prevent unresolved issues. View every problem as a chance for positive change. Instead of overwhelming employees with criticism, communicate clearly about how they can improve. When employees perform below expectations, they may struggle with confidence or motivation. Taking the time to engage in open dialogue builds trust and boosts their confidence.
Integrate modern technology
As technology becomes more prevalent in the workplace, it significantly impacts organisational culture. Leverage platforms that centralise tasks and simplify workflows. Tools like Slack and Google Hangouts streamline communication and enhance efficiency. However, technology can also create a sense of isolation by reducing face-to-face interactions. Focus on using technologies that foster team cohesion, especially for deskless and field workers, to ensure that your digital tools bring people together rather than apart.
Listen to what your employees have to say and give them regular feedback
Your employees are undoubtedly your most valuable asset as an organisation. Respect their needs and support their growth within the organisation. Embrace transparency, as employees may have innovative ideas that can improve the company or resolve existing issues. For example, the Google News tool was created by a research scientist who saw a need for aggregating news from multiple sources, even though he wasn’t directed to develop it.
Studies show that 75% of employees would stay longer with a company that listens to and addresses their concerns.* Many employees often receive insufficient or vague feedback from management. By providing regular, clear feedback, you can better understand employees’ motivations, build trust, and inspire confidence. More importantly, it demonstrates that you care, leading to increased loyalty and higher-quality work.
*Source: The Gallup's research on employee engagement
Employee perks
Many major companies, such as Google, Facebook, and Netflix, invest significantly in employee perks, recognising that happy employees increase productivity and long-term growth. Here are some budget-friendly ideas for enhancing employee satisfaction:
Happy hour: Many Australian companies host occasional happy hours with free drinks and appetizers. This casual setting fosters better relationships and a more relaxed atmosphere among employees.
Free health programs: Offer complimentary gym memberships or establish company sports teams to demonstrate that you prioritise employee health and well-being.
Free snacks and fruits: Provide healthy snacks and fruits to maintain energy levels and reduce fatigue. This small perk can boost productivity and morale.
Social activities and team building: Organise outings and fun activities like bowling or escape rooms to help employees bond outside of the office.
Volunteer as a team: Choose a charity and involve your team in volunteering efforts. This can be a one-time event or an ongoing project, fostering a sense of purpose and community.
Lunch and learn workshops: Host workshops or training sessions during lunch or morning breaks. Invite external facilitators or organise internal knowledge-sharing activities to encourage learning and team bonding.
Flexible work hours: Allow employees to choose their start and end times to accommodate personal schedules and improve work-life balance.
Recognition programs: Implement a system for recognising and rewarding employees for their hard work and achievements, such as employee of the month awards or peer recognition programs.
Professional development opportunities: Offer access to online courses, workshops, or seminars to help employees advance their skills and career growth.
Comfortable workspace: Invest in ergonomic furniture, quiet areas, or relaxation spaces to enhance the physical work environment and promote employee well-being.
Mental health support: Provide resources such as access to counselling services, stress management workshops, or mental health days to support employees' mental well-being.
And you? What are your ideas and initiatives to enhance your workplace? Share them with us in the comments section!
About Maud Vanhoutte - Coach and Author
Maud Vanhoutte has 17+ years of experience in soft skills development. Passionate about personal and professional development, Maud has helped countless individuals and groups boost their confidence and communication skills through tailored workshops and coaching sessions.
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