Is your company culture preventing you from attracting and keeping highly skilled employees?
Company culture – should small and medium sized businesses care?
Company/corporate culture is one of those phrases that executives in large multinational companies sometimes like to throw around. But when you are running a smaller business, managing recruiting and human resources on top of many other departments is not an easy job. Time is always an issue for owners who tend to wear multiple hats in their company, which can make it tempting to skim on certain non-essential tasks - like building a strong and positive company culture. But should you?
A recent study conducted by Great Place to Work that involved 3.4 million employees in 90 countries might make you reconsider. They found that employees who rate their company as a Great Place to Work are more likely to:
- Stay a longer time in the company (Retention - 86%)
- Be more productive and give extra (Productivity - 88%)
- Cooperate amongst each other (Collaboration - 86%)
Small and medium businesses that need to stay efficient and cannot afford lengthy and costly recruitment processes or large employee turnover need to pay attention to not only what makes a candidate right, but also, what will make them stay.
Your advantage against large companies
When it comes to hiring and keeping skilled employees, the biggest competition comes from large multinational companies with larger budgets and a desirable brand. But large corporations are inherently slow and rigid in their structure and culture. This is where small and medium businesses can gain a competitive advantage in the skilled labor market against their much larger rivals.
According to Great Place to Work people see a potential workplace desirable when they:
- Trust the people they work for
- Take Pride in what they do
- Experience Camaraderie with their colleagues
This puts small and medium companies, where the company’s structure is flatter, communication is inherently more direct, and employees are given wider responsibilities, in an advantageous position when it comes to making yourself seem desirable by highly skilled individuals.
How to make your company desirable by high skilled individuals
Employees that stay solely for money are rarely the type of people you want to fill your company with. A culture of trust, pride, and camaraderie, not just monetary reward, is what keeps the right kind of employees satisfied and willing to go beyond what they are expected to.
A positive culture comes naturally to some companies — others need to work at it. Below we expand upon the three main ingredients that make up a desirable company culture and how you can use them to make your workplace a place where people are motivated to do great work.
How to develop a trust culture
Here is what experts at The Center for Leadership Studies say you should do to build trust in your company:
1. Be supportive and listen
Leaders who take the time to actively listen to their employees and take their ideas into consideration make their employees feel heard and valued. Employees respect managers who support their personal development and help them grow.
2. Strive for transparency
Leaders should strive to be as transparent as possible, especially during times of organizational change. Employees want to know and understand what is happening in their company and how any changes will impact them. When delivering bad news, leaders must be as honest and transparent as possible. Being authentic and trustworthy will gain your employees respect.
3. Keep your word
Leaders should follow through on promises to their employees. Ultimately, employees will notice when changes do not occur, which will diminish the trust that they have in you as a leader to deliver on your word.
4. Be consistent
Leaders must be consistent in their words and actions. A leader should consciously treat all employees as equals. When employees are given preferential treatment, then animosity can occur between co-workers, resulting in resentment toward authority.
Trust can be earned. Leaders who have the trust of their employees are more likely to drive change that impacts company performance.
Look into your own company and see if you have any opportunities to increase the trust of your employees in your company.
How to help employees Take Pride in what they do
Employees who love what they do and the company they work for show support for their company in actions. They do whatever is necessary to get the job done and done right. That is the kind of pride every employer should strive to inspire.
1. Make sure you set correct expectations
Make sure you explain what your expectations on tasks, roles and responsibilities are. Falling short with this task, your employees may not know who does what or why.
Good leaders make certain their people know not only their own jobs but everyone else’s too.
2. Show appreciation
Showing appreciation for your employees boosts morale and increases workplace effectiveness. You also don’t need a huge budget to show your appreciations. Sometimes a small but focused gift can get a better result. If you are on a budget or don’t know where to start check out these inexpensive ideas:
- Offer gift cards to their favorite store
- Tickets to see movies
- Offer free tuition to courses
Experience Camaraderie with their colleagues
People who get along better will boost your company's productivity. But keep in mind that building camaraderie at work in not only about fun events or partying. Here are a few examples of what you can do to instill camaraderie in your company:
1. Encourage Group Participation in Projects
Motivate your employees to team up together on projects. Help them align for the same goal. Teamwork means helping each other by working for the same goal, which is the success of the company.
2. Have a frame for socializing time
Organize socializing events that encourage people to share stories about themselves. One such event is taking the team out to lunch, a streaming sports event or the launch of a new series on Netflix.
This can be a good chance to enjoy time that does not involve work and get to know one another outside of the workplace.
Even without offering sleeping pods, Xbox, drinks or gym membership you can compete for awesome employees. You represent fast business. For your potential candidates means trust, pride and camaraderie.
If you do want to offer extra benefits for your team but you didn't budget for this, check out our business loan. You can apply for extra capital online and you'll receive an answer shortly after.
Remember that happy employees make for great ambassadors!