How your company culture directly impacts your bottom line
By Lianda Dadlana, Rogerwilco - Oct 22nd, 13:33
Company culture plays a vital role in the overall performance of a business. It can directly affect a company’s bottom line as employees respond to negative environments differently. If they’re not seeking new opportunities, they’re despondent and delivering low quality work.
As a business owner, it is your responsibility to create a positive working environment. Your culture needs to promote happiness, respect, appreciation, and teamwork. So, in order for your business’s culture not to affect your bottom line, read this article. It will give you a better understanding of what company culture is, its impact, and how you can improve it.
What is company culture
In simple terms, a company’s culture is based on the type of personality the business has. For example, is the environment positive, does it promote good morale and are your employees happy about coming to work every day? Although you might believe that your company has a positive environment, it would be in your staff and business’s best interest to examine the behaviour of your employees. Ask yourself the following questions:
● Do your employees seem happy and content?
● Are your employees eager to work and produce their best work?
● Is there an open, respectful dialogue between co-workers?
● Is there a low employee turnover?
● Are your employees going above and beyond for your company?
When answering these questions, you need to answer them truthfully, and your answer should be a big YES! Although this might become challenging if you have a medium to large business, you can have your employees fill out a questionnaire. This will give you an anonymous answer to how your employees feel about their working environment.
How can company culture affect your bottom line?
Your employees spend most of their time at work, so a bad environment will not only affect their mood but their overall attitude towards their job. There are many ways in which businesses’ culture can become toxic. Some common examples are when people are overworked, have no freedom to express themselves or receive low pay with zero benefits. When these feelings are bottled up, they can have a dramatic impact on your business.
This can lead to employees calling in sick, a higher turnover rate and low quality work. And all these negative traits will impact business revenue. When your staff aren’t motivated, your consumers will be affected, leading to them purchasing from your competitors.
How to improve your businesses culture
Although it may seem like it’s difficult to improve a businesses’ culture, it isn’t impossible as there are steps you can take. A good way to start is by including benefits for your workers.
If you’re wondering “what is a group insurance scheme”, it’s a group insurance cover that offers several benefits for your employees – benefits like a funeral cover, life insurance, health cover, travel cover, and credit life cover. Taking the initiative to add benefits to your business can improve employee loyalty, job satisfaction, productivity, and morale.
Another way that benefits can help with your business’s culture is that your employees will have peace of mind in knowing that they are insured. This will help your employees focus on producing quality work without having to worry about financial burdens.
You can also improve company culture by offering your employees flexibility. There are employees who prefer to work for a company that provides flexibility because of family obligations. Or, simply because they prefer to work remotely. Offering flexibility can prevent burnouts, stress, and unhappiness that will have an even bigger effect on your company.
You also need to promote trust and growth in the workplace. Your employees need to trust that you have their best interests at heart; the same interests you have for your business. When your employees trust you, they will go above and beyond for your company because they know you won’t exploit them. The same applies to growth; your employees need to know that there is growth within the company. It would be unfair of you to expect a happy work environment when your employees know they may never climb the corporate ladder.
All these efforts can help your employees feel motivated to reach your business goals.
Because at the end of the day, they are the ones who ensure your business continues to strive. Without happy employees, it will be challenging for your business to succeed.
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