Corporate culture is one of the hottest topics in business today. Over 82% respondents in the Global Human Capital Trends report state that culture is a competitive advantage. Make sure your culture is clearly defined and aligned with your business strategy and most importantly that you’re monitoring employees to ensure it’s being followed.
According to the Global Human Capital Trends report, Culture “describes the way things work around here. Specifically, it includes the values, beliefs, behaviors, artifacts, and reward systems that influence people’s behavior on a day-to-day basis. It is driven by top leadership and becomes deeply embedded in the company through a myriad of processes, reward systems, and behaviors. Culture includes all the behaviors that may or may not improve business performance. Today, culture is a CEO-level issue and something that can be measured and improved to drive strategy.”
Bad news travels fast and competition is tougher than ever for top talent as the economy improves.
Case Study: Company Culture Gone Wrong
A new employee is quickly promoted through the ranks of a Fortune 500 company. He confidently wins the approval of executive leadership and gains high visibility in the community. His unethical tactics of manipulation and borderline illegal monitoring of internal political threats goes unchecked by leadership. He uses social engineering to harass and damage reputations of co-workers. A toxic environment is created where experienced employees leave the company and the corporation’s reputation as a once solid employer is tainted. The damage that this one individual did to the company’s culture is difficult to repair.
The Great Recession fostered widespread cultural decline as employers held all the power given the large pool of talented workers. The tide has now turned, with the balance of power shifting back to the employees in a tightened labor market.
Many companies are creating Culture Manifestos to clearly communicate their values and mission. Netflix’s “freedom and responsibility” culture manifesto is one of the most popular items online with over 11 million viewers. To ensure employees are following the corporation’s culture guidelines, assessments are regularly given to do a pulse check. Employees at all levels of an organization are given a safe way to communicate concerns without retaliation.
Companies that focus on culture are becoming the places where top talent wants to work and seeing a positive impact on their bottom line. According to Glassdoor, “companies named to Glassdoor’s ‘Best Places to Work’ list broadly outperformed the SA&P from 2009 to 2014. They also found that being named a Glassdoor “Best Place to Work” leads to an approximate 0.75% jump in stock returns during the 10 days after the announcement.”
Develop Trustworthy Leaders
Take a close look at leaders in your organization. Is there an opportunity to better align their behavior with your cultural values and mission? The Bob Pike Group has helped 95% of Fortune 100 companies with measurable training and performance solutions. There are several options to choose from:
Learn how to write effective training objectives with this “Free Guide: 5 Tips for Writing Effective Objectives.”
