Imagine this scenario: After a long and extensive recruiting process, you have finally narrowed it down to a few great potential hires. As you begin the interviewing process, a candidate asks you to describe your company culture. What’s your answer?
Sure, your company has ping pong tables and numerous outings every quarter. But your company culture shouldn’t rely solely on your unlimited PTO policy. Instead, these are often referred to as workplace perks.
For HR professionals, workplace perks are a way to describe a company’s culture to help attract talent and enhance the employee experience. That said, a company’s culture should also be rooted in an organization’s goals, strategies and initiatives. In addition, culture should be an essential component in a business’s success or failure and act as a guide for an organization. A company’s culture should take center stage, while workplace perks should act in a supporting role.
In today’s business climate, companies are trying to find new ways to become and remain competitive. So, how can company culture attract and retain employees while having an impact on a company’s bottom line?
Employee retention’s impact on company culture
It’s no secret employee turnover can have a devastating impact on a company’s overall productivity. But, that’s not all: according to a recent study, voluntary employee turnover is responsible for U.S. businesses losing nearly $1 trillion every year. In the past, tangible benefits such as higher compensation and improved retirement plans have satisfied employees, but that hasn’t positively affected employee retention in the long term.
Millennials are expected to comprise over half the American workforce by the end of 2020. In addition, many Baby Boomers are continuing to work far into their 60s and 70s. This leaves a lot of workplaces with over five generations working together simultaneously. While many generations have different viewpoints on the political climate or how they manage stress, they are all asking the same thing from employers: a better company culture.
While it is often stated that millennials value company culture more than any generation that has come before them, good company culture is still expected from all employees. Once the company culture is defined, it can inspire current employees to more positive and productive at work while reducing turnover. In addition, a defined company culture attracts job candidates who want to work at the company.
Success is rooted in collaboration and communication
Employees are an asset and can have a direct impact on your company’s bottom line. While how the impact employees have on a bottom line may come in many forms, companies often overlook collaboration as a solution. According to a recent survey, 52% of respondents said they considered leaving a job because they didn’t have a strong sense of community at their workplace. Communication is key to an effective working relationship; which in turn, can help create a sense of community within the organization.
Collaboration provides an opportunity for employees with different skill sets and ideas to come together and work towards the achievement of a common goal by thinking, brainstorming and offering various perspectives to provide solutions. Similar to effective company culture, it helps the employees feel valued and better engages them with the organization. In addition, collaboration between employees creates a positive working environment and increases retention rates.
As today’s workforce becomes more competitive and higher standards are expected among employees, superficial perks are no longer enough. Companies need to have a defined company culture and effective collaboration to create a place employees want to work and have a positive impact on their bottom line.
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