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Why is a strong business culture essential?

Hatty Blue

Some leaders believe that the secret to success is hiring talented individuals who show up and complete their tasks on time.

And of course, that's essential; but for longevity, your business needs to create a positive culture. Not easy, especially in the wake of the last year we have all experienced, and it is possible.

When your team lacks a strong culture, it operates essentially as a group of people who have nothing in common except for the same employer. Culture is essential in employee engagement, and the following data highlights how crucial employee engagement in your team will be to your success.

Studies by the Gallup Organisation and the Queen's School of Business found that disengaged workers had -

·      37% higher absenteeism

·      49% more accidents

·      60% more errors and defects

Organisations with low employee engagement had -

·      18% lower productivity

·      37% of lower job growth

·      65% lower share price over time

All successful organisations have one thing in common – high employee engagement as a result of great team culture.

Let's take an example from the commercial Sector to show how an organisational culture that has been worked on is far better than a poor, or non-existent one.

Cultures can break down when employers lose focus on the overall picture of the organisation and neglect the team who are working to ensure a profit, and this can often happen during or after a time of crisis.

When processes break down due to staff shortages, you then struggle to recruit as you, unfortunately, become known as a 'poor employer'. Once the switch is flicked, and employees start to realise they are working for a 'bad company', there is no stopping the resignation letters.

Signs that your team culture has been damaged and your organisation is suffering include -

·      High employee turnover

·      Lack of collaboration between team members

·      Decreased performance

·      Absenteeism

There are many reasons your company culture may become damaged; Covid being the most significant factor in recent times, but other factors can contribute too.

A lack of clarity surrounding your organisation's core values, inadequate or negligent management and a lack of effective feedback can all contribute to a breakdown in culture.

So, what can you do to rebuild your culture if internal or external factors have created change? We’ll be looking at this in our next blog!