A good and productive company culture is very important for any business. Strong company culture may have a great impact on employee satisfaction, increase in productivity, and overall improvement in performance. However, a minor challenge is determining if your company’s culture is really a success. We’re going to tackle a few key metrics and tools to determine the health of your company culture in this article.
Employee Satisfaction Surveys
No better method of measuring company culture exists than through an employee satisfaction survey. These help you collect feedback from the employees about their work experience and work satisfaction as well as balance between work and life and effectiveness of management. A regular survey will go a long way in tracking changes among the employees and show which specific areas will require improvement.
Gallup reports that companies that employed the most engaged staff posted 21 percent more profitability than those companies posting very low engagement. Your firm culture can be inferred through employee satisfaction surveys in an attempt to work toward an engaged and productive workforce.
Retention and Turnover Rates
Another important metric is the retention and turnover of employees. A high rate of turnover represents a failure to build company culture. Turnover might stem from dissatisfaction with the work environment or potential lack of opportunities for moving up or growing in the organization.
According to the Work Institute, the average cost of employee turnover is 33% of the employee’s annual salary. Developing a positive culture that encourages retention in your organization can save your company costs that may otherwise be incurred in hiring and training employees.
Collaboration and Communication
For a healthy company culture, what is important is effective collaboration and communication. Measuring such a circumstance might be difficult; however, find metrics that indicate well the level of teams working, such as cross-functional projects initiated, teams’ meetings conducted, and quality of communication between departments.
Recently, Salesforce conducted a study that proved that employees whose voice is heard at work are 4.6 times more likely to feel empowered to do the best work. The culture of the company should continue creating an environment that is open, communicative, and collaborative to create the valued attitude among employees.
Recognition and Rewards
People who work in organizations that have healthy company cultures recognize and reward their employees in ways that contribute to the greater good. One good measure of this is to analyze metrics such as how many employees are getting recognized, how frequently these recognitions are happening, and, most importantly, how effectively employees perceive the actual recognition and reward programs.
According to Gallup, a survey revealed that those employees who received recognition and praise in the workplace are more engaged in and productive at work. So, how can you create an organizational culture promoting the appreciation and motivation of employees? The answer for this is through the effective recognition and rewards programs.
Conclusion
Measuring effectiveness in the company culture is a way of building a positive and productive work environment. The use of employee satisfaction surveys, retention, and turnover rate tracking for how well cooperation works, how well people communicate, and implementing recognition and reward programs is very valuable in determining how sound the company culture really is and which areas aren’t going as well as they should. Thus, the application of strong company culture can drive employees’ engagement, productivity, and finally, business success.