Every organization is dependent on its top performers for year-on-year growth. But what happens when the brightest stars of your organization leave?
Many times, the reasons to change are monetary benefits, perks, or business exposure. You can handle those situations, at least temporarily. But what if the reason to change is the organization’s culture?
There are numerous definitions of organizational culture; however, the basic idea is that it refers to a group of values, beliefs, and behaviors created and maintained by the organization’s leaders and carried forth by the employees, which differentiate one organization from another.
So the next time you hear anyone say – “that’s the way we do things around here”, “the rituals of our company”, “the company climate”, “the reward system”, “our basic values”, or “we believe” – they’re referring to their organizational culture.
Organizational culture is perceived differently by enterprises. Some businesses realize its significance and spend proportionately to improve or sustain a positive culture, while others ignore it altogether.
Although it is difficult to statistically show the impact of organizational culture, it is believed that employees from corporations with a strong culture experience a sense of belonging, engagement, and commitment toward their organization – which is indeed critical for success. The key roles of work culture are enlisted below:
1. Creating Brand Image
Organizational culture goes a long way in creating the brand image of the organization. The work culture gives an identity to the organization. In other words, an organization is known for its culture.
2. Shaping Employee Interaction
Culture shapes the way employees interact with their workplace. A healthy culture encourages employees to stay motivated and loyal to management. Additionally, it promotes healthy relationships among employees and fosters healthy competition in the workplace. It is the culture of the workplace that actually motivates employees to perform.
3. Building Emotional Attachment
Organizational culture helps build an emotional attachment to the enterprise. It cultivates a sense of belonging and commitment toward the corporation and develops unity in the workplace.
4. Providing Guidelines and Direction
Every organization must have set guidelines for employees to work accordingly. The culture of an organization represents certain predefined policies that guide employees and give them a sense of direction at the workplace.
Every individual becomes clear about their roles and responsibilities and knows how to accomplish tasks ahead of deadlines. Additionally, such policies help mold positive habits in individuals, making them successful professionals. It is the culture of the organization that extracts the best out of each team member.
5. Enhancing Employee Retention
Employee retention is a key concern for organizations. Unlike previously, it is now time-consuming, costly, and often individuals who leave take proprietary knowledge that is impossible to replace. Hence, management is realizing the importance of holding on to their existing people.
But how probable is it to convince employees not to make the switch? Every employment proposition consists of some mixture of tangibles, such as pay and benefits, and intangibles, such as relationships with colleagues, work-life balance, and trust in management. When the current position is not meeting employee needs, an opportunity to join another organization arises.
If the reason to change is tangible – it may not be a huge task to retain talent. However, if it is culture-related, management faces a bigger challenge. Organizational culture cannot change instantaneously, but it influences all aspects mentioned above. Organizations that reward employees for high performance instil a sense of satisfaction and achievement within them.
For example, Vishal Sikka, the CEO of Infosys, gifted iPhone 6s to 3,000 top-performing employees. Additionally, he wrote an accompanying mail addressing employees as friends. Such gestures undoubtedly have a positive influence on the workforce. Moreover, balancing life and work is increasingly important for employees when deciding whether to stay with an employer.
In a healthy organizational culture, managers provide ways to maintain that balance, including flexible schedules, on-site amenities, and work-from-home options. Work cultures where company-wide goals percolate to employees of all levels, where collaboration is encouraged, and where training, learning, growth, and promotion opportunities exist, positively impact retention.
6. Organizational Culture as a Strategic Asset
Embee firmly believes in the significance of organizational culture in engaging and retaining valuable employees. It is one of the important components that CEOs, CTOs, and other leaders employ to sustain performance, build emotional connections, and maintain a competitive advantage. We consider it a fundamental business strategy.
Organizational culture plays a crucial role in organizations – it is a valuable asset and a key driver for employees.
