28 January, 2022
The Synergy between Organizational Culture and Employee Retention
‘No company, small or large can win over the long run without energized employees who believe in the mission and understand how to achieve it.’
Building on the words of business tycoon Jack Welch, this blog navigates through the profound synergy between Organizational Culture and Employee Retention. Corporate culture is widely considered a simple, straightforward component of an organization which often leads to core values being understated or even ignored. However, the inevitable truth of the matter is- Company values can be a powerful tool for employee commitment when nurtured into the guideposts of the organization.
The Impact of Company Values on Employee Retention
Retention of skillful employees has raised a key concern for businesses today due to the challenges involved in career meta-competencies of a multigenerational workforce and the baffling wave of Great Resignation. There are two factors primarily responsible for this discrepancy. First, there is the issue of job satisfaction. Second, there is the ‘Company Environment’ and the degree of comfort offered by it. An employee’s commitment is either strengthened or weakened by the rapport shared by the company’s values and his own work ethic. If the company culture does not align with an employee’s personal beliefs, a widening gap between these two vantages weakens retention and amplifies attrition. Interestingly enough, research shows only 4 in 10 people know what their company stands for and less than 50% feel connected to their organization’s mission.
So how can you ensure that your best employees don’t leave? Leverage your organization’s core values to build a proverbial safety net! Browse through the different attributes of a culture-driven organization and the impact they have on employee retention.
Communication is Crucial
A workplace culture that prioritizes communication and prizes a two-way feedback structure can do wonders for employee retention. Transparency and accountability needs to be ingrained into your company’s core beliefs in order to establish a healthy professional atmosphere for your workforce.
A Digital Employee Engagement Platform can resonate as a two-way communication channel through organization-wide announcements, employee pulse surveys, automated performance reviews, and a readily available knowledgebase. Having an enhanced level of communication can shed light on why employees consider leaving, and actionable efforts can be undertaken to improve the employee experience. By taking time to listen, companies foster a culture of compassion and loyalty that considerably reduces the risk of turnover.
An Actionable Vision and Mission
A pivotal precursor to company culture is a clear mission and vision statement, that proffers a sense of purpose to your workforce. Drive employee engagement by drafting a compelling vision for your organization, and more importantly, act on it! We hear it umpteen times in the professional world, but it can never be said enough– ‘Live your values’. No matter how eloquent or articulate your mission statement is, if it fails to pulsate with your employees’ day-to-day experiences, retention is implausible.
This is the unique factor that can set you apart from the marketspace; when employees feel connected to the bigger picture and sense mutual growth opportunities, they are less likely to look elsewhere. Gallup asserts that a strong sense of mission drives employee retention across generations. Thus, boost employee retention by giving your staff a luminary value-set to engage with!
Committed Leadership
The management style of your leadership team is an intellectual reflection of your company culture. Business leaders should be an earnest embodiment of your organization’s values, through words and actions. A corporate environment with a stifling leadership undermines trust and depreciates commitment, whereas good leadership creates a culture where employees believe their voices will be heard regardless of their stature.
Read more about people-focused leadership here.
Engage to Retain!
The frenzied rat race has become the governing factor while determining growth strategies in the current century. While this approach does work, the question that persists is whether it is a robust long term strategy for retaining talent. Here’s where employee engagement comes into play- highly engaged employees are 87% less likely to leave their companies than their less engaged counterparts, according to the Corporate Leadership Council. Instilling engagement into your core value base is the gateway to a healthy, committed, and reliable workforce.
Practices such as ‘Town Hall’ sessions with the CEO, virtual team development activities, sprucing up engagement with a social wall, and an automated rewards and recognition framework can all be executed via a Digital R&R Platform, thus adding a democratic and vibrant touch to your business environment.
In conclusion
Having established that corporate culture is the focal point that dictates employee retention within an organization, implementing the same is in your hands. Contemporary business leaders are aware of this shift towards organizational values and it is observed that companies better equipped for organic growth are those that invest adequately in cultivating a healthy culture and propelling Employee Engagement.
Connect with us for a personalized demo of our novel employee engagement platform, Gratifi.