10 Undebatable Benefits of Purposeful Culture Building
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As much as I’d like to think otherwise, organisations still prefer to talk about culture, rather than proactively build it in a way that generates happiness in their employees and delivers the benefits that they are looking for. This is backed up by the research.
In a January 2022 study, 92% of executives believed that improving the culture would improve the value of the organisation and yet only 16% believe that their culture is where it needs to be in order to do so. With some very deliberate action, this gap could be easily filled, but deliberate action on culture is still a pipe dream for many employees. Indeed, in the same survey, almost three quarters of staff interviewed said that a lack of continual investment from leadership into culture building was to blame for it being ineffective in practice.
For many organisations culture is like making dinner. Leaders may buy the ingredients, but they expect the dinner to make itself. And of course, dinner never makes itself!
Unless you continually study and write about culture so that you can deliver game-changing culture programs (as I do), you may not have benefits to hand to convince you that the time and money you devote to culture building is worthwhile. So I’m presenting them here as an undebatable list of the benefits that deliberate culture building provides so that leaders (and HR managers) have the information they need to gain the investment and commitment required to transform the way work gets done.
1. Increased Employee Engagement: When employees are involved in the definition process it generates a sense of belonging and purpose which, of course, leads to higher levels of engagement. Engaged employees are more motivated, productive, and committed to their work.
2. Improved Performance: When engagement and belonging is high, performance improves. Fact. It may not happen immediately - which is often what leaders want to see - however, over time employees will strive for excellence in everything that they do to safeguard the culture they have built. Depending on your business this will lead to increased sales, customer service, confidence, reduced safety incidents and so on.
3. Improved Retention: When leaders put their trust in staff to define the culture, then they automatically feel valued and satisfied. This results in increased loyalty and a feeling (backed up by what they hear from their friends!) that they work in an environment that would be hard to replicate elsewhere. This results in lower recruitment and training costs, as well as greater continuity in team dynamics and institutional knowledge
4. Better at Attracting Talent: Organisations with a reputation for building and evolving a positive culture are more attractive to top talent. Gen Z employees are increasingly prioritising a great culture - and leaders committed to it - when evaluating potential employers, making it essential for companies to invest in their culture to attract and retain skilled people now and into the future
5. Enhanced Collaboration: Great teamwork, communication and collaboration among employees doesn’t happen by accident. When individuals are brought together to define how they’ll work together they feel more comfortable sharing ideas, seeking feedback, and working hard together to achieve their goals, this also leads to greater innovation and problem-solving capabilities.
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6. Greater Innovation: A culture that is built to provide time for creativity and risk-taking can foster innovation and adaptability. When employees feel empowered to experiment, challenge the status quo, and learn from failure, it creates an environment conducive to breakthrough ideas and solutions.
7. Enhanced Brand Reputation: A strong workplace culture can enhance an organisation's brand reputation both internally and externally. Indeed companies known for their positive culture are increasingly being sought out by investors, customers and the broader community alike which can have a positive impact on brand perception and market competitiveness. As one CEO said to me not long ago, ‘I’m investing in my culture to give me competitive advantage through our reputation’.
8. Boosted Health and Wellbeing: When staff are involved in the culture definition process they almost always prioritise work-life balance, mental health, and wellbeing. There is often a fear at senior management level that this will lead to selfish employees and missed targets when the reverse is true. When wellbeing is prioritised, fewer remediation measures (and the costs that these programs incur) are required, leading to healthier, happier and more resilient employees. This can result in reduced absenteeism, fewer stress-related issues and overall improved employee health outcomes.
9. Increased Organisational Resilience: In times of change or adversity, a strong culture that people feel proud of and connected to can provide stability and resilience. Employees who feel connected to their peers, the organisation and its values are more likely to weather challenges, adapt to new circumstances and remain committed to the organisation's long-term success.
10. Employee Happiness: Most importantly of all, when culture is cooperatively built it drives positive feelings, not only with regards to one’s work and prospects for the future, but also towards each other and the chances of organisational success. This happiness is felt at every level of the organisation and is projected externally to family life too.
In summary, when time and money is made to deliberately build a positive workplace culture it can lead to increased employee engagement, performance, retention, talent attraction, collaboration, innovation, customer satisfaction, brand reputation, employee health and wellbeing, organisational resilience and happiness. If that sounds like something you’d be interested in, then it’s time to stop telling yourself that ‘culture change is hard’ and put your trust in the process instead.
For those interested in the empirical evidence behind this blog, you can find that by following the links below: