The Society of Human Resources Management (SHRM) polled American workers to understand the impact of company culture on workers’ well-being and the financial health of the business. According to research highlighted by Harvard Business Review, positive work cultures promote more productive, engaged, and happier employees. Also, according to one survey highlighted by Forbes, “corporate culture, however, it is defined, makes a difference in companies’ performance and value (Creighton, K., 2019).
The highlights of the SHRM report findings were as follows:
- Toxic culture costs companies a fortune in turnover and absenteeism; it highlighted common indicators of bad workplace cultures, such as discrimination and harassment; and underscored the alarming impacts on employees. Toxic workplace cultures have driven 20% of U.S. employees out of their jobs in the past five years — at a turnover cost greater than $223 billion.
- The research found employees hold managers—more than leadership or HR—most responsible for culture. They also say their managers often lack the soft skills needed to listen, communicate, and ultimately lead effectively.
- Among the respondents, 76% said their manager creates the culture, and 58% said they left a job because of their managers.
- 3 in 10 respondents said their manager does not foster a culture of open and transparent communication.
- 38% of American workers are “very satisfied” with their current job.
- 49% of employees have thought about leaving their current organization
- 26% of employees stated they dread going into work.
- 58% of those who left a job due to culture claim People Managers are the main reason they ultimately left.
- 25% of Americans define organizational culture as a combination of employees’ attitudes, actions, and behaviors.
- 76% say their manager sets the culture of their workplace.
- 36% say their manager doesn’t know how to lead a team.
- 25% don’t feel safe voicing their opinions about work-related issues
- 25% don’t feel respected and valued at work.
- 4 out of 10 say their manager fails to engage in honest conversation about work topics frequently.
- SHRM also released its 2019 Workplace Fulfillment Index, which revealed 44 percent of Americans feel extremely or very fulfilled in their current job compared to 56 percent who feel less than fulfilled at work.
Change your toxic culture! Overall, implementing a positive company culture is becoming an important thing for organizations. Consider the following steps to implement a new culture!
Know What Your Current Workplace Culture Is Like! Establish a Vision for Where You Want Your Company to Go!
- Company values and mission and how they’re represented internally and externally
- Methods and avenues of communication (or lack thereof)
- Traditions or celebrations employees participate in or want to participate in
- Create an ethical work environment; hold management accountable
- How or if employees are involved in their local communities
- When and how employees participate in learning and training
- Team dynamics or how employees work (or don’t work) together
- Workspaces and where people work and/or congregate for meetings, lunch, breaks, etc.
