As a CEO you most likely know the kinds of things that affect your bottom line, but did you know that company culture can be one of them?
A great company culture plays a major role in supporting business growth and success.
The converse to that?
A negative company culture has the ability to break a company down.
Let’s take a brief look at how this could play out:
We’re no strangers to Uber. Their company has in recent years taken a major knock with allegations of harassment and discrimination and the global public is infuriated by this.
A decline in stock value, bad publicity, a drop in consumers who’ve decided to rather use a competitor service called “Lyft” as their way of protest, as well as the stepping down of their CEO.
This negative spotlight drew attention to the type of company culture that Uber embodied, but also highlighted the culture of their competitors “Lyft” have.
Uber, on the extreme end of a negative company culture, have experienced deep financial impacts on their company and its success. Lyft on the other hand who was were praised for a “community-centric culture” which ultimately added to an increase in business, affecting their bottom line positively.
In this blog post, we aim to show you exactly how company culture can actually affect your bottom line and what you can do to make sure it only has positive impacts.
So let’s take a look:
High employee turnover is expensive:
Retaining employees is often a number one priority for many companies. Why?
It’s expensive to lose employees;
Think about the training and onboarding process of a new recruit. What and who is involved in this process? You are likely taking an existing employee’s time to manage and lead this process.
Job ads can be a tad pricey, depending on the platform you choose to use. Are you posting ads using social media or are you using a recruiter? How much time does it take a staff member to write and post these? There is also obviously no guarantee that you will find a successful candidate.
The productivity of a new recruit is also much lower than a high-performing employee. A study by Deloitte suggests that it can take up to two full years for a new recruit to reach the same level of productivity as an existing staff member!
“Forbes reported that the average cost to replace a millennial is 15k-25k.” Sound like money your company can afford?
So the question then becomes, how do you retain employees?
A move from management to a process of mentoring can have great results in reducing employee turnover for your company.
Mentoring can have a significant impact on the mentee, from learning new skills to an increase in productivity and motivation. It also harnesses a culture of collaboration over the well-known competitive structure so many corporate environments are based on.
Take a look at Google. They have one of the lowest employee turnover rates in the world...and adopt a mentorship program where skills are imparted, and concerns and worries are dealt with professionally and timeously.
The business case you ask?
A Wharton study indicated that “people who mentor were promoted 6x more than people who didn’t, and mentees were promoted 5x more. ...And retention was 20% higher!”
Could your company do with a boost in revenue?
Employee engagement may be where it’s at:
Engaged employees promote an increase in productivity and motivation. Furthermore, an environment such as this provides employees with the opportunity for creativity and innovation.
If your employees are happy at work, they feel fulfilled, listened to and cared for. When you create an environment like this, the chances are they will continue to work with your company for years to come. By virtue of that, you successfully reduce turnover and as well as staff absenteeism.
In developing a great culture, you begin to nurture a sense of team, a team that’s strongly dedicated to the vision and mission of your company.
You create a safe place for employees to do their work well. A place that values high-performing employees that are deeply motivated to achieving company goals and living out your values.
This permeates into a world outside of the workplace too. Your employees are more likely to make mention and even recommend your company to friends and family with a sense of trust and loyalty to your company.
Sound like something your company could get in on?