9 Nov · 4 min read
Does company culture really matter for employee retention?
A toxic workplace culture or a higher salary package?
Who do you think will grab the attention of employees in the long term?
Of course, it would be workplace culture. There is no point in staying with a company where the culture is toxic and non-progressive. There are numerous such questions that might come up when we relate the company culture to employee retention. In fact, TINYpulse survey report claims that 24% of employees are likely to leave the company within a year resulting in an increased churn rate.
Losing an employee generates a major chunk of workload almost immediately. Not only do you have to fill the gaps to accommodate the immediate business workflows but you also have to focus on starting the whole recruitment process all over again.
Good company culture is essential to prosper the core values of the company to attract and retain more employees. Let us have a closer look at some of the benefits associated with good company culture:
1) Drive Better Performance
It is obvious that your employees will be willing to stay in your company if your organization has a great work culture. Also, productivity is directly proportional to more business. You need to follow a specific schedule to eliminate micromanagement and focus on what can be done at a particular time and what can be focused on later. Providing flexibility will drive better innovation and creativity among employees. Thus, improving overall performance.
2) Enhance Communication
Effective communication is essential to maintain good workplace culture. Creating a culture of transparency and trust will foster healthy work relationships. Regular communication will help you in identifying the areas of improvement both professionally as well as personally. In fact, voicing your opinions, and providing honest feedback will promote an open communication environment to ensure everyone in the team is on the same page.
3) Boost Collaboration
A lot of studies show that bad company culture results in decreased employee satisfaction, and poor work quality. This not only affects the overall performance of an employee but also impacts their mental well-being. To ensure everything is going smoothly within the team, one needs to collaborate effectively with one another. Taking charge of their responsibilities on regular basis will help them increase their skillset and build a culture of cross-learning in the company.
4) Reward and Recognition
No matter how good employee benefits you offer, but you will not be able to retain your employees if you do not have a good company culture. You need to present them with an environment where an employee feels valued and experiences professional growth. Recognizing the efforts of employees from time to time will increase the retention rate of the employee for a longer period. Informal reward gifts such as cash prizes, gift vouchers, etc. should be offered who employees who meet their company objectives and deserve a moment of appreciation. Rewards and recognition help in establishing a culture of appreciation.
5) More Growth Opportunities
Growth-oriented employees want more than what is being offered to them as a paycheck. Their want to see themselves grow with the company with which they are associated. Companies with positive workplace cultures provide their employees with better training and learning resources. This helps in increasing the skill set of the employee as well as giving them the freedom to grow personally as well as professionally. In fact, a specific growth tracker can be designed for an employee to keep a track of their growth opportunities. This will keep them in sync with what they desire to do in order to qualify for appraisals and promotions.
Great work culture, growth-oriented organization, and strong organizational policies for the better of an employee are key elements of employee retention. Good company culture promotes a sense of well-being and happiness among employees that directly impacts their performance and growth. Also, timely feedback from your team will assist you in working towards the pin-points associated with your organization. Also, focusing on hiring top talent will not only improve your team’s quality but will also provide an employee with the opportunity to witness enormous growth. Bright minds will try their best to promote a culture of innovation and creativity that caters to the overall development of the company.