Company culture may have only recently appeared as a workplace buzzword, but the actual idea is as old as the workforce. Culture, whether you choose to build it or not, is developing in your business right now, gaining life simply through the people who clock in every day. From the mission statement to the workplace values all the way to the free coffee in the break room, culture is being formed right before your eyes. These findings are exactly why so many companies are working to build a strong company culture:
- Companies with poor company culture average 48% turnover probability, while organizations with rich company culture average 13%.
- Employees with high level of engagement had a 19% increase in operating income and 28% increase in earnings growth.
- Employees with a low level of engagement had a 33% decrease in operating income and an 11% decrease in earnings.
Have you ever taken the chance to consider what it is about your company that sets you apart from others in the space? While the actual entity is organic, allowing it to form on its own with no guidance from you or your executive team, means you are leaving the above things up to chance. A little unsettling, isn’t it?
Building your company culture might seem like a huge undertaking, but Ceridian asked the people who know what company culture needs most: talent. Their Driving Culture in the World of Now: Pulse of Talent study has the insight you need. Read on to see what they uncovered.
Companies with poor company culture average 48% turnover probability. Click To Tweet
Skill and Leadership Development
The top driver of culture being used by HR programs is training programs with 63% including some form of one within their strategy. The Pulse of Talent study shows this is in direct alignment with what employees want, too. The number one most important driver of culture is training programs with career development options in at number 3.
This is probably the best news for businesses. Employees want to build their skills and they want to do it under their current employer with the hopes of advancing within the organization. If they can see both as a possibility, the chances of feeling unsatisfied and looking for new employment are considerably lower. Unfortunately, many companies fear supporting professional growth will lead to an educated workforce who are interested in taking their newly developed skills elsewhere, but this doesn’t appear to be likely as another survey found 63% of employees would be more engaged if they had better training and learning opportunities.
Recognition for Hard Work
Being appreciated by the leaders who employees spend a large chunk of their time trying to impress is very important to their satisfaction. Overall, 83% HR professionals reported a positive impact on employee engagement when a recognition program of any kind was implemented within their organization, which might be why a recognition program is the second largest driver of culture according to employees. Luckily, 54% of HR programs use them as part of building the company culture of their organization.
Benefits, Not Perks
The workplace trend right now is all about interesting perks like ping pong tables, dart boards, and weekly catered luncheons. There’s no doubt that employees will be happy to see some of those elements at their offices, but more and more research is showing your people won’t continue walking through your doors every day just for the chance of impromptu pool matches. Those auxiliary pieces will support your culture, but benefits are what can ease both the personal and professional lives of your people. The study found the top benefits employees believe drive culture are annual pay increase, paid sick leave and paid time off.
Read the rest on the Ceridian blog.