How Improving Your Workplace Culture Will Improve Your Bottom Line
Workplace culture is an extremely important, yet is sometimes overlooked element of business. Although this is somewhat of an abstract term, it impacts your business in several ways and often plays a role in your long-term success. Here are some specific examples of how improving your workplace culture can also improve your bottom line.
Lower Employee Turnover
A high employee turnover rate can be a profitability killer and diminish your brand equity. Not to mention, it can be a serious hassle if you’re constantly having to find replacements to fill vacated positions. A study from Columbia University found there was a definite correlation between workplace culture and employee turnover. According to the study, “the likelihood of job turnover at an organization with a rich company culture is a mere 13.9 percent, whereas the probability of job turnover in a poor company cultures is 48.4 percent.”
It can also impact your ability to recruit top talent for obvious reasons. If you’ve got a poor workplace culture where employees are chronically dissatisfied and leaving prematurely, this news is likely to spread. On the other hand, if your company is known for its rich culture, this can be a major selling point and will often give you an advantage over competitors.
Deeper Employee Satisfaction
If your employees dread coming to work, and there’s no sense of cohesion and unity, it simply wouldn’t be realistic to expect a high level of job satisfaction. Why is this important? Well, information surrounding multiple studies from Entrepreneur Magazine found that “happy workers are 12 percent more productive than the average worker, and unhappy workers are 10 percent less productive.” On top of this, “unhappy employees cost American business over $300 billion each year.”
When you think of it like this, it’s easy to see why a positive workplace culture is so vital to your bottom line.
Performance and Productivity
When you combine strong team chemistry (because employees stick around for the long haul) with A+ talent and genuinely satisfied employees who are motivated to perform their jobs at a high level, this is almost guaranteed to translate into strong performance and consistently high productivity. Rather than having crack the whip and force productivity quotas, employees will often be motivated to achieve and even over achieve on their own accord.
While at first glance, workplace culture may not appear to have an immediate impact on your company’s bottom line, it becomes clear that this is in fact the case when you examine a few key factors. By striving to create the best possible culture and a positive environment where employees feel genuinely connected, it can pay off on a much larger scale.
Is your workplace culture less than ideal? Contact SelecSource today to see how we can help improve it.