You posted the perfect job ad, read through dozens of resumes and narrowed them down. You shortlisted some great candidates, interviewed them, and found a standout applicant — You knew they could take your business to the next level. So you hired them, with high expectations and excitement for the future.
Six weeks later, they’re in your office with a resignation letter. Through your disappointment, you ask “Why are you leaving?” They respond “I’m not sure I’m a good fit.” Translation — Your company culture might not be working, and you need to do something about it.
What is company “culture?” Lots of experts talk about company culture, but what does it actually mean. Think of it as the “default emotional state” of your company. It’s how working in your business makes people feel. Does their business environment excite, motivate, and inspire them? Does it feel oppressive and authoritarian? Does it present the right mix of challenges, problem solving, and support?
Why does culture matter? Culture matters because it has a huge impact on how your people feel. It impacts morale, productivity, hiring, quality of work, autonomy, and so much more. In fact, the better a company’s culture, the more it contributes to your bottom line. The University of Warwick found that, “Happy workers are 12% more productive than the average worker, and unhappy workers are 10% less productive. In fact, unhappy employees cost American business over $300 billion each year.”
Ask your employees what they feel the current company culture is. You probably already have a pretty good idea of how the company culture feels to you, but you need the perspective of the people who really matter — Your employees. If you’re concerned about your culture, talk to your people about it. Discuss it in one to ones, let them know that whatever they say is fine. Don’t assign any blame — Listen, and understand.
Understand where your company culture comes from. Lots of things go into building a company culture, but the main one is this — It mainly comes from the people at the top of the business. If they’re exciting, inspiring, and approachable, the culture will be too. If they thrive on conflict and authority, that will permeate down through the business. It’s called Leadership and you need to lead from the top down.
That means if you want to change the culture and make your business an awesome place to work, change has to start in the leadership team. It’s a bitter pill, but a necessary one.
Talk to your team about what they want the culture to be. Once you understand how your staff currently see your company culture, and where it comes from, you can work to change it. Talk to people about what their ideal company culture looks like.
What would motivate them to enjoy coming to work more? What changes do they want to see in attitude, approaches, and management styles? How can you make doing their job easier and more pleasurable? Listen to all of it. No-one knows how to improve culture better than your people.
Create a plan. Now you know what your people’s priorities are, you should get a plan in place to change things. You’ll need strong commitment from your leadership team, a project manager who deeply understands culture change, a project team who can get things done, and a review and feedback group who can check actions are having the desired impact.
Actions you can take might include:
- Improving employment perks — Give your employees the right benefits — Healthcare, time off, retirement planning etc.
- Give employees control over their time — The ability to work from home, a sensible work / life balance, autonomy to work how they want.
- Build confidence and trust — Encourage an “open door” policy, positive feedback, and collaboration within and across departments and teams.
- Provide a better working environment — Relaxed, informal break spaces, a flatter management structure, a relaxed working environment, fun team events and parties.
Enhance your culture. And now, it’s a case of just getting that stuff done. Make changes to your culture, get metrics in place to measure success, track how you’re progressing, and see employee morale and productivity improve.
That way, the next time you spend thousands of dollars on hiring and training, you’ll have the reassurance that your employees are more likely to stay, and your company is likely a “good fit.” And that’s great for everyone.