Blog
Sage: Organisational Culture - what is it and how do I achieve it?
Posted on: Thursday September 29, 2022
Your business is more than just a bottom line, a balance sheet, and a business plan!
When dozens or hundreds of people work towards a shared goal every day, you can’t overlook the power of culture.
Broadly speaking, organisational culture (or workplace culture, company culture, etc.) refers to how people in the group interact and communicate.
Organisational culture often includes shared company values, leadership styles, the business’ mission, and the overall attitudes of the internal stakeholders – this means everyone.
Strong vs. weak organisational cultures
A company’s culture can be strong (good, healthy, sturdy) or weak (poor, toxic, bad,).
Consider a business where employees:
- Feel empowered to contribute to the discussion
- Work effectively as a team
- Are consistently recognised and rewarded for their work
- Receive fair and decent pay and have a clear path to progression.
You’d probably assume that a workplace like this has a strong organisational culture.
Now let’s consider a business where employees:
- Are micromanaged
- Receive poor pay
- Are not encouraged to share knowledge
- Are rewarded for working unpaid overtime with just an annual pizza party.
This organisation’s culture is potentially rather weak.
The most tried-and-tested method for determining the health of a business’ culture is through employee engagement (are people enthusiastic and involved in their work).
A well-constructed employee engagement survey, along with some other key metrics, is one of the best ways to measure this.
How important is a strong organisational culture?
A happy, motivated workforce is a real asset to any business: if employees are giving it their all they’ll be a lot more productive. In contrast, if they’re watching the clock and doing the bare minimum, productivity will suffer.
To underestimate the impact of organisational culture would be a mistake. It doesn’t matter how you spin it – put simply, a strong culture is a great benefit for your business.
Improve your culture, improve your company
When your organisational culture is strong, everyone benefits. Employees are happier. The business is more profitable. Customers are more satisfied. And leaders can be confident that the people making up their organisation are united behind a single vision. It’s a win-win.
But don’t just take our word for it. Below are some great articles that show just how beneficial a strong business culture really can be, it will…
- Influence the quality of talent you can attract and keep. A 2019 Glassdoor survey revealed that 77% of job-hunting employees consider culture before even applying. When they do join, 65% cite company culture as one of the main reasons for staying in the job. And if it deteriorates, 71% start looking for jobs elsewhere.
- Keep employees happy. And happy employees, according to a University of Warwick study, are around 12% more productive.
- Mean better work performance. A 2017 Gallup report found that highly engaged businesses see a 41% reduction in absenteeism, and 21% greater profitability.
For more information on how Sage Employee Benefits can help your business speak to our team of experts at welcome@sageemployeebenefits.co.uk
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