Getting company culture right is a balancing act

Some may dismiss the importance of company culture when it comes to achieving business outcomes when, as a matter of fact, it’s crucial to productivity.

The annual Pulse of Talent report by Dayforce has underscored the importance of company culture when it pertains to productivity. Certain times, the idea of company culture being a pillar to achieving business outcomes can be scoffed at – this is evident through the lacklustre attempts from organisational leaders to implement strategies that can uplift company culture.

As Andrew Shortt, manager of global payroll at TELUS Health, said: “Happy employees produce better work. And isn’t that what every organisation needs from every employee?”

“I think that’s especially true today with so much change in the world of work. To be comfortable with change, employees need learning opportunities that make them feel confident in their ability to ride the waves of change.”

Three-quarters of Australian respondents (75 per cent) said they either have or would turn down an opportunity because the culture didn’t feel like the right fit for their preferences. At the same time, respondents indicated that by improving company culture, they would feel more engaged (59 per cent), experience improved mental health and levels of burnout (55 per cent) and be motivated to work harder (46 per cent).

The benefits of crafting a positive company culture are well worth it, but, at the same time, it can be a strenuous task and often takes a long duration to cultivate. On the other hand, however, it doesn’t take much to dismantle company culture, as Don Stewart, HRIS manager at JB Poindexter & Co, explained.

“A great organisational culture takes a lot of time to build but very little time to destroy. When you have it, you see everyone working together towards common objectives. You see cooperation, teamwork, and trust,” Stewart said.

“You are surrounded with positive coworkers who are focused on the task at hand rather than negative people who drain your energy each day. Productivity is high, and turnover is low.”

In terms of threats to fostering company culture, the report focused on detractors. Culture detractors were described as employees who are disengaged and cynical. According to the report, employees who are not engaged or are actively disengaged cost the world $8.8 trillion in lost productivity.

Although most detractors fail to enjoy their employment, very few of them leave. Just over one in five are actively looking elsewhere. It’s up to leaders to recognise the detractors within the team and attempt to engage them. If they go unnoticed, then company culture could break down entirely.