The importance of a strong company culture cannot be understated. Not only does it reinforce a business' values and mission, but it also engages employees in the day-to-day operations of a company. Unfortunately, not every organization prioritizes workplace morale – but ignoring this important aspect of a business is ultimately detrimental.
Employee engagement is lacking
According to a 2013 Gallup study, only 30 percent of the working population are actively engaged in their job. Overall, only 1 in 8 people are enthusiastic about their jobs. That low figure means that the majority of workers are not feeling tied to their employers, which in turn negatively impacts productivity, recruitment and other operations. Gallup estimated that, in total, disengaged employees cost the U.S. anywhere from $450 billion to $550 billion per year.
A new report titled "Bring Out the Best in Your People" focused on the import role company culture plays in businesses. The research found that engaged employees are a huge benefit to businesses, and not just because they are more productive. Instead, the study established that those workers who have a positive connection with a company have 50 percent fewer accidents and significantly lower health care costs. By building an organization with a strong, positive culture that engages employees, businesses can improve their bottom line while also enhancing the HR services offered to everyone.
"When culture and morale are low in a company, employee performance stalls, their health suffers, productivity plummets and worker's compensation claims jump significantly," said Dr. Charlie Cartwright, the lead author of the report. "The best way to avoid those outcomes is by focusing on good leadership and bringing out the best in employees."
It pays for companies to care
Companies that take the time to build a strong, welcoming culture can reap the many benefits of their efforts. The most engaged employees show higher productivity and profitability, while also having lower rates of absenteeism and turnover. Even with recruitment outsourcing streamlining the process of attracting, interviewing and onboarding new hires, the advantages of retaining top talent are significant, and maintaining a positive culture is a great way of keeping these individuals.
One of the best ways to engage employees is for executives and supervisors to listen to and connect with staff members. Something as simple as recognizing human factors at play in certain situations can go a long way toward fostering a strong relationship with workers, according to the report, and it may lead to positive returns down the line.