Creating a thriving workplace culture goes far beyond offering flashy perks like free lunches, yoga classes and dog-friendly offices, as appealing as these may be.
And if we think it’s all about pay and benefits, think again. Whereas employees say that being paid fairly makes them twice as likely to think their workplace is great, when employees are proud of their work, they are 20 times more likely to say it’s a great workplace!
At its core, a great company culture is about getting 8 key elements right, according to Great Place to Work.
The Power of Culture: Why It Matters
A strong company culture isn’t just a “nice-to-have” – it’s a critical factor that drives business success. Companies listed in the Fortune 100 Best Companies to Work For® have shown cumulative returns around 1,700% since 1998, compared to the average of a little over 500%[i]. These companies see significantly higher employee engagement, innovation, and customer service ratings. Staff in their workplaces tend to go above and beyond out of choice, not because they’re driven to do so.
What are the Key Elements?
To build and maintain an exceptional workplace culture, focus on these eight essential elements:
- Credibility – staff see leaders as trustworthy and having integrity.
- Respect – leaders recognise employees’ efforts, value their input, and acknowledge their lives outside of work.
- Fairness – all employees receive equal opportunities and are treated impartially.
- Pride – staff feel great about their job, their team, and the organisation and its reputation.
- Belonging – employees feel accepted, appreciated and valued for who they are.
- Effective Leadership – leaders inspire, motivate, and support team members and are competent, honest, and approachable, avoiding favouritism
- Values – shared beliefs and principles guide the organisation.
- Innovation – ongoing renewal, with employees secure to share ideas fearlessly.
Why do they matter?
- Credibility. 83% of employees at the 100 Best Companies believe their management’s actions match their words, compared to just 42% at average workplaces. Credible leaders foster better retention, satisfaction, and motivation, with employees feel more secure and engaged.
- Respect. Organisations that offer flexible working hours and remote work options show respect and build greater employee dedication. Recognition and seeking staff input are other keys. Employees who feel respected are more engaged and committed to their roles.
- Fairness. Organisations excelling in fairness report fewer issues related to favouritism and politicking, along with fairness in compensation and recognition. Again, it contributes significantly to overall workplace satisfaction and retention.
- Pride. Employees who take pride in their workplace are twice as likely to stay with the company and 6 times more likely to recommend it to others. Continuous reinforcement of pride through consistent actions helps maintain engagement and loyalty
- Belonging. A sense of belonging leads to higher job satisfaction (3 times more likely to look forward to coming to work) and longer tenure (5 times more likely to want to stay long term). Inclusive practices and celebrating diversity foster a strong sense of community, which is linked to faster revenue growth.
- Effective Leadership. Leadership is make or break for teams. Leaders who align their words with actions and genuinely care about employees create a productive and innovative work environment. Leadership development is crucial for sustaining this effectiveness.
- Values. Leading with shared values rather than via strict rules fosters trust and engagement. Organisations that embody their values boost creativity and productivity.
- Innovation. Staff in such innovative workplaces are 31 times more likely to think their workplace is a breeding ground for innovation. A culture that supports innovation sees higher employee loyalty, satisfaction, and willingness to go above and beyond. And innovation is a driver of performance in a fast-changing world.
Avoiding a Toxic Culture
A mediocre culture (where employees and leaders are merely going through the motions) can descend quickly into a toxic one (characterised by negativity, lack of trust, and disengagement) if the warning signs are not heeded.
If it gets toxic, employees don’t feel engaged at best, and don’t feel safe at worst, with gossiping, backstabbing, bad habits and a general feeling of mistrust increasingly common.
Investing in the eight key elements of a great culture will minimise the risks associated with mediocre or toxic cultures, and contribute to a positive, thriving work environment.
Using Employee Surveys for Continuous Improvement
Check in on staff sentiment frequently in both regular discussion and in a structured way. Employee surveys – including regular pulse surveys – are essential tools for gauging employee sentiment and identifying areas for improvement. By seeking feedback and acting on it, you demonstrate a commitment to enhancing the workplace culture and addressing any issues that arise.
By focusing on these core elements, managers and leaders can cultivate a culture that not only attracts top talent but also retains and engages employees, and drives long-term success and satisfaction.
[i] As measured by the Russell 3000 Index.