If we were to take the signage down in the offices of Taxify and Uber and put yourself right in the middle of each office we bet that although both companies essentially provide the same service, you would notice a distinct difference between the two.
That difference is company culture!
Company culture is much more than a physical location or dress code, it’s an ethos, the way people in a certain company do things and how they relate to each other.
It’s the soul of the company, the glue that holds everything together.
Business leaders acknowledge that there is tremendous value in creating a great company culture however, they admit that this is an area they struggle to execute on.The difficulty in creating a great company culture comes because culture isn’t a line item on a balance sheet, it is intangible and cannot be quantified. We can’t accurately measure company culture but we can always feel it.
But if company culture can’t be measured, why does it matter?
Organisations that have created a great company culture for themselves are at an advantage when it comes to attracting and retaining the top talent in the market. A study by McKinsey shows that the top performers in organisations are 8 times more productive than average performers.
In a recent article, employment expert, Jacob Morgan highlights that employers are facing new challenges when it comes to hiring the best talent that will help their organisations thrive in the marketplace.
By the year 2020, the world could have 40 million too few college-educated workers. This means that companies may not be able to hire for the roles they need, much less be able to fill those roles with top talent.
The global war for talent gets complex for organisations to solve because money is not the sole determining factor that millennials consider when they choose where to work. They are taking into account other factors such as the actual work they will do, the people in management and the company’s culture.
A great company culture can help organisations attract and retain the kind of top talent that they need to be competitive. One of the defining factors for an organisation with a great culture is that the employees get recognised for the work that they do.
Why is Employee Recognition Important in creating company culture?
Employee recognition is important because:
As the competition for talent grows more intense, the way in which organisations recognise their employees will keep gaining importance.
Each time an organisation recognises an employee, they’re showing the rest of the workforce the values and behaviours they should embrace.
Employee recognition gives employers the ability to reinforce behaviours they find valuable and as a result, every instance of recognition will either add or take away a little from your company culture.
How Should We Recognise Employees?
1. Encourage peer-to-peer recognition.
Employee recognition should not only be from management to the employees. All employees should be able to recognise each other for doing great work. Building an environment of openness will create a sense of social cohesion and community in the workplace.
2. Use employee recognition software.
As millennials and Gen Z enter the workplace, employee recognition software such as bountiXP is the most relevant way to implement employee recognition as they are two generations that grew up fully immersed in tech. Recognition technology gathers all an employee's praise and acknowledgement in an organised and structured manner which can be looked back upon with a sense of accomplishment.
3. Recognise the what and the how.
Many organisations make the mistake of only recognising the “what” (achieving a certain KPI) and forgetting to recognise the “how” (behaviour) it was achieved.
Changing employee behaviours may be difficult but recognition can help to shift behaviours in a non-threatening way.
When we recognise employees, we can reinforce positive behaviours by recognising those behaviours that match the company’s values. If an employee exhibits the right behaviour, make sure that they and their peers know about it so that everyone can model the right behaviour.
4. Separate recognition and rewards.
Though rewards have their place in building a great company culture, real recognition is most likely to benefit the organisation when it is specific, authentic and not overshadowed by trinkets.
There is no question that the business landscape is changing along with the rules for attracting and retaining top talent.
The shortage of relevant job skills means that those who are skilled are in high demand and there is always a risk of them leaving should they feel that their work is overlooked or not valued. These employees want and need recognition and denying this will only hurt your organisation.
By implementing employee recognition you can create a great company culture that will make your organisation; a place where people want to work. Employee recognition can support the creation of a great company culture by making it more tangible and personal.
Not sure how to launch an employee recognition program that will build an incredible company culture? Click on the image below and download a FREE copy of our latest ebook to find out how!