Company Culture Matters
Today’s company management teams may be relieved to know that according to a recent study, they may not have to choose between keeping their workers happy and making a profit.
In a study conducted by the IBM Smarter Workforce Institute and the Globoforce WorkHuman Research Institute, the data suggests that if workers are happy it may make companies more profitable overall even if they have to spend a little more to make it happen.
The researchers in the study surveyed 23,000 employees from companies in 45 countries. Participants were asked about how their experiences helped their sense of well-being. The responses that were given helped comprise a five-point Employee Experience Index which measures belonging, purpose, achievement, happiness and vigor as a part of employee experience.
Researchers found high scores in each of the five points indicated higher retention rates and worker performance. According to Globoforce’s Senior Recognition Strategist, Lynette Silva, all of this makes a difference to how well a company performs financially.
In another study that was conducted along the same lines by FTSE Russell, those companies that were listed among Fortune Magazine’s 100 Best Companies to Work For list that is published annually, those companies also generally enjoy returns in the stock market up to three times greater than other companies that are on the exchange but not within the list.
Other Factors to Consider
Can such success in company performance be attributed to their ability to reinvest their capital gained in their workers? Would the same hold true for companies that don’t have as much in terms of profits to invest in their workers? According to consultant and former federal agent, Andrew Wittman, equating the culture of a business with its bottom line is not a good idea. Instead, he suggests leading with logic.
“The leader must build a culture that focuses on the process that produces successful results,” he said. “Results are the byproduct of a no-excuses/high-trust culture, not the other way around.”
Wittman concedes, however, that positive worker emotions can help drive positive results for a business.
The study also indicated that employees who had invested their time in a business and felt that their suggestions mattered and they were appreciated for their work were twice as likely to indicate a positive work experience at the companies that they worked for. You can read more of Nidi Madhavan’s article at Workforce.com.
Every company has its own culture. Helping you to create a great work environment for your workers as well as helping you achieve a good fit between workers and company cultures is all a part of what we do at EinstienHR.
Our human resource professionals will work with your company to help you determine what matters most to your company. We can help you to fill open positions at your company by assisting you in finding the right candidate for the right job. EinsteinHR offers a wide range of ways in order to attract, hire and retain top talent for your organization. Contact us today to find out how EinsteinHR can help.