Insights from Engagedly’s State of AI in HRM, 2nd Edition Survey.
Cultural change is probably one of the major challenges that the leadership team faces. You may want to build an organizational culture that is collaborative, innovative, or aggressive. Most companies try to change their work culture directly through speeches, training, or direct intervention in meetings. None of these approaches might work.
The Motley Fool is a perfect example. According to Gartner research, volunteering can increase by more than 20% when employees get health insurance benefits. When it comes to employee benefits, The Motley Fool found that diversity is key to promoting healthy lifestyles.
Samantha “Sam” Whiteside, the company’s Chief Wellness Fool, says, “Employee wellbeing programs cover all wellness needs and go beyond physical wellbeing and traditional programs.” Employees must be treated as people with different needs which need to be met. Organizations should understand that meeting those needs adds value to the organization and strengthens it.
The overall brand image, values, and vision and mission need to match the needs of candidates and potential customers. Organizational culture makes an impact on candidates deciding to join a new company or on clients deciding to do business with a brand.
This constant alignment is important to any profitable business, but culture is much more than that.
Every worker bee dreams of a positive work environment where there opinion is valued and hard work appreciated and acknowledged. A culture driven by clear goals is what motivates and inspires employees to take ownership and be proactive. It also ends up in high levels of workforce engagement, which boosts productivity. A robust connection between an organization and its employees creates a positive atmosphere, flooded with innovation and productivity.
People who feel valued and acknowledged are less likely to leave. It is thus imperative that companies foster a successful organizational culture, supporting their core values. Happy employees mean lower attrition along with higher productivity. Companies can save both time and money spent in recruiting new people.
It goes without saying that if employees feel engaged and appreciated, their performance will get a massive boost. Organizational culture influences people and brings creative, innovative minds together. People with diverse backgrounds and skills can work together harmoniously. All because of a positive work culture!
Not all companies have the power to turn ordinary employees into absolute brand ambassadors. But those with strong organizational cultures do. Companies that recognize and reward their employees’ hard work are more likely to open the gateway to a positive cultural transformation.
There are a variety of job portals where people can check out employee reviews of a lot of companies. These reviews are a deciding factor for a candidate before applying for a job in the said company. Herein, organizational culture plays a huge role. Good reviews on work culture provide a massive boost to the brand image. Companies which have effective onboarding processes help new employees access the right resources and better adapt to their roles. This imbibes satisfaction and loyalty in employees.
Workplace culture is the reflection of the values and behavior of employees. A clear vision communicates to your employees what you want them to do and how to behave. An organization’s core values should be crystal clear.
Here’s an example of the idea of identifying a desired outcome. IKEA keeps its vision simple-a better lifestyle. Management explains this vision to employees as well as customers. At its core, the company sees the connection between IKEA and its customers as a partnership.
IKEA uses terms like ‘us’ and ‘together’ to address customers and help employees determine the impact of the company’s vision on business success.
Implement your mission statement in your work and show your employees. Set weekly goals to demonstrate core values that help employees achieve their vision and provide incentives.
Employees must identify with and relate to the change. Before rolling out the cultural framework, communicate with your employees, interact with them with more transparency, and create a culture of open feedback. This will create a deeper understanding of the desired culture.
Southwest Airlines could be a high-profile example of organizational culture done right. Their core value is that employees, not customers, come first. The airline explains, happy employees will result in greater customer satisfaction—and greater company earnings. Around 10 years ago, the organization’s senior team aligned on six core cultural values. These values, which are displayed on the company’s culture page, provide guidance to employees on how to work the Southwest way.
One sure way to make culture change a reality is to embed it in the way you hire, promote, and reward employees. For the recruitment and onboarding process, your culture will be reflected in the way you evaluate candidates as well as the recruiting experience you provide.
Shopgate, an e-commerce app, has employees working in different parts of the world. So, they try to have a common and unilateral culture that binds them all. They prioritize transparent communication and collaboration even while evaluating candidates for recruitment. They try to onboard people who share the same passion for their products and culture that the company has.
It is crucial for organizations to realize that changing culture is a mammoth task which takes an indefinite amount of time. After testing, piloting, evaluating, and adjusting, we arrive at the final cultural framework.
Your employees own and shape your company culture. As a leader, you can only provide a roadmap that your employees can follow to provide a better work experience.
Starbucks is a great example of a brand that understands perfectly the value that its employees bring to the company.
Each barista is trained to work in perfection and create a welcoming environment for customers. The same positive energy is reflected in their corporate culture. They support their employees by offering research grants to participate in online or university programs. Another benefit of working at Starbucks is that the Bean Stock Program allows employees to own stock in the company after a certain period of time. A manager refers to the members of their team as “partners”, rather than “employees”. This initiative promotes employee engagement and makes partners feel highly motivated and inspired.
While planning an internal rollout of the new culture and goals, partner with your HR team. There is likely no need for an expansive public rollout; most of these changes should be focused internally.
Blackbaud, a cloud-based software provider for the philanthropic industry, has built its corporate culture around a shared passion to give back. The company follows suit by organizing team-wide projects, providing time off for volunteers and corporate matching for charitable contributions. This program awards grants to local nonprofits in Austin, Texas. The company also hosts social events on topics they love, like the Pinewood Derbys, Harry Potter, and the weekly Star Wars movie marathon.
CEOs and executives may have an entirely different view of the cultural challenges facing their companies. To get an idea of those issues, you can:
An improperly managed structure is plagued with issues. A transformation within the environment often requires a flip within the organization.
Change is always met with some resistance, and different cultures can have different reactions. Tread carefully, well-equipped with a proper strategy before you try to bring in a change in the organizational culture.
Do you want to know how Engagedly can help you change your organizational culture and boost up employee performance? Book a live demo with us.
Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2024.
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