By managing your company culture, you can increase your company's profits

Company Culture

It's better to manage company culture for thriving of company than to let it take a life on its own. There are several reasons for this.

Deloitte research shows that only 19% of employees in management positions think they have a positive company culture. Considering how negatively toxic company culture affects the running of a company, HR managers shouldn't ignore this fact and take the management of it into their own hands.

Corporate culture can be seen as the personality of the company. It is the way employees approach their work and interact with each other based on the values and attitudes they share. In fact, there is no definition of a bad company culture because each company is so individual that the values and attitudes of each company may seem totally inappropriate to another. However, most companies in the world agree that frequent conflicts between employees and management, poor communication among employees, negative employee attitudes that may consist of, for example, unhealthy competition among colleagues or poor morality,  generally tense atmosphere and counterproductive behaviour  create a toxic environment for employees in the workplace.


Does a toxic company culture apply to your company?

Do any of the above characteristics appear on a daily basis in your company? Read on. If your employees crank the door handle more often than they do at the post office, it's highly likely that a toxic company culture has developed. If an employee discovers that the company's culture doesn't suit them, that discovery is often the last straw that makes them implement their thoughts of termination into action. Are you part of  conflicts among colleagues, missed deadlines, frequent mistakes and workplace gossip? Again, an unfavourable company culture is to blame.


Dissatisfaction = weak commitment

As an employee's dissatisfaction increases, their performance decreases. And untapped potential adversely affects company productivity. "I've experienced first-hand how fragile the company culture is in smaller teams or companies. How easy it was to change it. All it took was an unfortunate selection of new employees and the company literally changed from one month to the next.  If you add to that the emotions and high toxicity of some of the workers, they were able to turn a productive department into a place where no one looked forward to going." Marko Šarmír, Managing Director of RecruitMen & Developium Group, a company that provides human resources services and develops applications that make HR professionals' daily lives easier, shares his experience.


An engaged employee thinks much less about leaving

Having enough engagement is key to developing a positive culture. Blessing White states the following in the company's State of Engagement 2008 report. "Engaged employees stay because of what they give. Disengaged employees stay because of what they get." If you increase a company's engagement by 10%, you can increase its profits by roughly €2,000 per employee per year. A highly engaged employee is 87% less likely to leave than a less engaged colleague. And lower turnover means lower costs associated with finding replacements.


Random versus designed

Every company naturally has a culture, regardless of whether or not you're striving for it in some way. Without management, however, it's just a random product of employees. Building a positive culture is one of management's toughest challenges.  "In the long run, it is the company culture, apart from  the products, that can differentiate  company from others. That is why it is important to manage it. The topic itself is very abstract and difficult to measure for many, but it is necessary to invest in it. Company culture creates our impression, feeling, perception of the company, whether we are a candidate, employee, customer or competitor. It is present, for example, in product development, customer care or marketing communication," explains Marko Šarmír. "Try to imagine a company that declares certain qualities, whether for its customers or employees, but in reality no one in the company "lives" them? What would workplace relations and customer support look like?"


How do you clean up a toxic culture?

The key is to be personally attuned to the company's mission. As many as 98% of employers and 94% of employees think so. First and foremost, employees need to be well-informed about the company's mission and values. Less than 50% are fully informed about the company's goals and mission. Values need to be defined and then clearly communicated to employees and partners. Find out more about employee engagement and satisfaction through objective and valid surveys.

Toxic Culture


Change comes from above

One way you can increase is the level of positivity in your team through reward. Try recognition, a bonus or other non-monetary benefit. Start change from the top through managers. Present your expectations to them and explain their role and importance in designing the company culture. "It is important that the manager is able to define to the recruiter the preferred attitudes and values in addition to competencies," Marko emphasizes. "If a team works well when colleagues are honest with each other and have a high level of self-reflection, I require to validate these values."


People create culture, pick the right ones

It's quite challenging to select people for a team who share similar values to the company as a whole. "What works well for us is the first interview, second/  CBI (competency based interview) combined with psychometrics, where we openly discuss the results of the self-assessment in the context of the work the candidate has done so far. At the same time, we are also able to focus on questions related to values and motivation," advises Marko. "It all depends on the position, the time and resources you want to invest in the methodology and selection process. We've learned our lesson, so we select slowly, even though they say a good candidate doesn't wait. We have an answer to that: we are not a company for everyone."


Focused on values and attitudes

If you want to maintain a positive company culture, design it. One of the key elements that shapes it is selecting the right employees whose DNA is related to the corporate DNA. By selecting the right employees with the right position and company values in mind, you reduce turnover and build a positive company culture. In this process, you can use a smart recruitment management app, Nalgoo ATS. It automates and digitizes processes, giving you more time to make better decisions. In addition to the candidate's competencies, you can also notice better their attitudes and values.

By: Adriana Hergott

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