- Coffee service
- Office supplies
In business, most decisions are made based on how they affect the bottom line. It makes sense to line things up into black and white columns. There are times we need evidence that investments will pay dividends and are worth our investment of time and money. Times are tight, and we need to manage our finances smartly.
You may think that company culture is one of those intangible items that can wait, but if you truly want your company to thrive for years to come, it needs your attention. Is it a smart investment? It is an absolute MUST for your success and is more measurable than you think.
How to Prove the ROI of Company Culture
Here are 3 ways to prove the ROI of Company Culture.
1. Increase Productivity
Did you know that companies with highly engaged employees are 21% more profitable? According to a recent Gallup study, not only are these companies more profitable, but they are also scored 17% higher on productivity.
If employees are engaged in your company mission, they understand how they play a part in your company's success. They are invested and are willing to give all they have to help the company be successful.
A client recently shared that by concentrating on their employee’s engagement, they began to see positive attitudes trickling down to everyone. With employee shoutouts and performance feedback, their employees noticed the positive change in behaviors and reacted in return with more enthusiasm and sharing of ideas to enhance the company. Morale has improved, and a supportive environment has led to increased productivity and their bottom line.
When you get the culture piece right, your employees become invested in your company mission, engage their talents in their role, and reach their full potential. This allows productivity to improve, and that alone will prove your investment in your culture is worth it.
2. Reduce Unnecessary Turnover
According to the Corporate Leadership Council, engaged employees are 87% less likely to leave your organization. The cost of replacing employees is high, so you must find ways to keep people engaged in their jobs.
When people consider changing jobs, it is easy to think it is money motivated. It isn’t always about money. Most people would work for less if they had a chance to work at their ideal job, one where they feel invested in the company's vision and purpose. Don’t misunderstand, money is important to people. It just isn’t the driving force to keep people in place. If someone is engaged, they are committed to your organization and want to be a part of the larger picture. Money is just the icing on the cake.
Another thought to consider is the domino effect of disengaged employees — absenteeism. Absenteeism can have a significant impact on productivity, customer service, and indicate a lack of engagement in an employee.
Many studies show that engaged employees:
- Are motivated and less likely to miss work
- Are less stressed when they feel appreciated
- Experience fewer injuries on the job
What can you do about this issue? Relationships with their managers is the key. If managers take time to understand what motivates their employees and help them to understand how they play an active role in the success of the company, engagement begins.
Here is a valuable lesson from a leader on the importance of these discussions. “We learned that instead of treating others how we would like to be treated, we now strive to treat others how they would like to be treated.” Listening to you people is a great place to start.
It all begins with a conversation, making that person the center of your attention. If you show you care and engage in their job, they may not leave!
3. Grow Your Bottom Line
When most people think about employee engagement, they believe it is all "fluff." True employee engagement is not about having fun at work. When employees are engaged, they feel as though:
- They have a stake in the game and a sense of purpose
- They know what they are playing for and want to win
- They are willing to give everything they have to achieve that success
This is important to understand as we know strong company cultures leads to:
- 5x times more revenue to your bottom line
- 3x more likely to retain employees, reducing the cost of replacing people
- Your company is targeted by 94% of job seekers as the place to work, which makes recruiting top talent so much easier
Employee Engagement can significantly impact your bottom line. When you get the pieces right and put the time and effort into paying attention to the type of culture you long for, you will begin to see upward movement to your income line. That is something that will be measurable on your company spreadsheets for years to come.
Spend time to get your company culture on the right course. It is more important than you think. The investment you make in it today will reap great ROI for you in the future.