Are your employees happy? Are you content with the level of productivity in your business? More importantly, is your company culture aligned with your values and goals? All of these questions can be answered by measuring [the] culture in your company, and that may be the single most important process you embark on this year.
We know that that’s a bold statement to make but there's no doubt about the value of assessing cultural engagement in your business and adjusting the norms, where necessary. Keep reading because we’re going to break down how measuring culture can benefit your business and the key metrics to track to help develop a strong business culture.
Why You Should Measure Organisational Culture
Productivity is one of the most important factors in a business. To remain profitable, business owners and managers must tread the fine line between cost and output. Your employees play a major role in this.
According to a recent study by Indeed on job satisfaction in the workplace in the United Kingdom (UK), the vast majority of respondents - 97% to be exact - stated that job satisfaction was the most important factor to consider when applying for a new job. In fact, three out of four employees in the UK stated that stress in the workplace affected them negatively in some way, either through loss of sleep or physical or mental strain.
Aside from its effect on productivity, workplace stress often leads to higher employee turnover and employee engagement suffers too.
Measuring culture gives you tangible data that you can use to counteract these negative factors. Furthermore, it helps to mould the type of culture that you would like your business to have.
What are the Key Culture Metrics to Track and Why
If you understand the value of measuring culture and would like to implement these changes but don’t know where to start, keep reading. We have the answer.
There are several metrics that you can use to make the process of measuring organisational culture easier. We’re going to detail them for you here.
Communication
It may seem too simple an answer but talking to your employees and assessing their feedback is the easiest way to affect cultural engagement and to determine which areas of the business need improvement.
Using external tools, applications or surveys may also be beneficial as it eliminates the fear and apprehension that some employees may have with sharing their opinion about their current employer.
Engagement
Employees that are vested in the values and goals of a company will show this by how they engage with you, if at all. This includes reviewing open rates for emails that are sent internally, attendance numbers for company events and page visits on the intranet, and the amount of time spent on those pages.
These factors can help you assess the level of cultural engagement in your company and help you to determine where change is needed.
Productivity
Marketing agency, Raine Digital reported that employees are around 12% more productive in a workplace that is highly engaging, and that this leads to growth in sales and a 10% increase in customer ratings.
There is a clear link between employees that are happy, engaged and focused, and increased productivity in a business. This is why measuring organisational culture and establishing a solid one is key.
Employee Turnover Rates
Employment trends seem to show that employees are more aware of what they value and where they are not valued. This is echoed in the 2022 Randstad Workmonitor, which indicates that a third of the employees surveyed would rather be unemployed than remain in a workplace where they are unhappy.
Not to mention that employee retention and loyalty are harder to come by, the value of which is especially noticeable as a company expands its network and grows.
3. How These Metrics Affect the Business
As previously mentioned, productivity and profit are some of the major pros of a strong culture. It also ensures that the employees that are hired understand the values of the company before they start. They can then decide for themselves if your company is the place for them, which saves time and money.
On the other hand, a weak culture can leave employees feeling despondent, frustrated with procedures and processes and dissatisfied, overall. It may then be harder to get the best out of them and they could provide less than exemplary customer service, which will affect the reputation of your company.
While the process of measuring business culture can seem overwhelming, it’s important to remember that this is an ongoing process and that the reward of a well-established workplace culture can yield positive results.
4. What is Cultural Misalignment
Once you’ve assessed the cultural engagement in your organisation and completed the measurement process, you may find that the type of organisation that you have does not align with your intended goals and values. This is known as cultural misalignment.
While this can be disheartening, it also holds value. Now that you have established which areas can be improved within your business, you can begin the process of establishing a strong organisational culture and an aligned business model.
In Conclusion
Businesses can no longer afford to overlook establishing a strong business culture if they hope to remain profitable and valuable.
However, the transformation of a business from misaligned to culturally sound has been shown to benefit companies and, while extensive, has the potential to yield tangible, positive results in the long run.
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