For many, the mention of “workplace culture” conjures up images of happy employees, vibrant office spaces, and a general sense of employee well-being (fruit bowl and a table tennis table in the lunchroom, anyone?). While employee satisfaction/happiness is undeniably important, equating it entirely with effective workplace culture is, in our experience, unhelpful.
For SME business owners and managers, understanding the deeper layers of workplace culture is crucial to fostering an environment that not only delights employees but also drives performance and business success (research consistently indicates that effective cultures can have significant bottom-line impact, such as 35% higher revenue per employee, 2x revenue growth; further details below).
So just what is Workplace Culture?
Whilst there are many definitions of workplace culture, they generally all highlight the shared values, beliefs, and practices that characterise a business/ organisation. In a sense, it’s the unwritten rules, the customs and practices that guide how employees interact, make decisions, and approach their work: if you like, it’s “the way we do things around here”.
Culture shapes the way things are done and influences every aspect of the business, from leadership styles to team and customer interactions.
“Happiness” should not be the Ultimate Goal
While a positive work environment in which employees report high levels of satisfaction or happiness is absolutely beneficial, reducing workplace culture to the sole objective of employee happiness is, in our experience, problematic. Rather, employee happiness should be seen as a positive byproduct of a healthy culture. A workplace that focuses only on keeping employees happy might inadvertently overlook other critical components, such as accountability, performance, and alignment with the mission and values of the business.
Let’s face it: if the sole objective of a business was employee happiness, you’d pay them double, require them to do less work and yes, probably install a dart board as well as a table tennis table in the lunchroom.
A truly effective workplace culture is one that achieves multiple objectives, including client/customer satisfaction, quality products and services, positive financial performance, a good return for owners/investors AND employee satisfaction/engagement.
So, what are the Pillars of an Effective Workplace Culture?
Our exclusive Success Through People© Model is designed specifically with small to medium-sized businesses/organisations in mind. It essentially acts as a roadmap for developing and maintaining effective workplace cultures, which are characterised by:
- Clear Vision, Values, & Strategy: A clear vision, well-defined values, and a strategic approach underpins a high-performing culture. This alignment ensures that all actions and decisions are guided by a coherent framework in support of the organisation’s long-term objectives.
- Effective Leadership: Leadership plays a pivotal role in shaping and sustaining the desired workplace culture. Leaders set the tone for the organisation, modelling behaviours and attitudes that reflect the company’s values. They are responsible for creating an environment where employees feel valued, respected, and motivated to contribute their best efforts.
- Recruiting the Right People: Successful businesses have a well-defined, professional and robust process to consistently attract and select from the best available talent. In addition to capably evaluating candidate skills, knowledge and experience, they effectively assess and select for personal attributes, values alignment and potential contribution to your culture.
- Clear Expectations: Effective workplace cultures establish clear expectations for both what needs to be done and how it should be accomplished. This clarity provides direction and ensures that everyone is aligned with the vision, values and strategy of the business.
- Accountability: Happiness must not come at the expense of accountability. An effective culture holds individuals and teams accountable for meeting their responsibilities. Performance metrics, regular feedback, and recognition of achievements are essential to ensure that the business thrives.
- Equipping Others: Empowering employees with the right tools, resources, and training is crucial. This pillar focuses on developing skills and capabilities, ensuring that team members are well-equipped to meet the demands of their roles and contribute effectively to the success of the business.
- Effectively Managing Risks: An effective workplace culture ensures proactive management of risks. This involves identifying potential challenges and implementing strategies to mitigate them, ensuring business sustainability and resilience.
- Valuing Others: A culture that values its people fosters a sense of belonging and respect. Recognizing and appreciating contributions, promoting inclusivity, and ensuring that employees are (and feel) heard and valued are key to maintaining engagement and satisfaction.
The Business Impact of a Robust Workplace Culture
A well-crafted workplace culture does more than just make employees happy; it drives business success. Research consistently shows that organisations with strong cultures experience higher levels of employee engagement, productivity, and retention. This, in turn, leads to improved customer satisfaction, innovation, and financial performance.
By way of example;
- Research from PWC reveals that firms with “effective people management” generate 35% higher revenue per employee
- Hewitt research revealed that those organisations that “genuinely acknowledged and recognised” their employees achieved double the growth in revenue (22%) than other organisations (11%)
- Studies by Gallup reveal that firms with higher employee engagement are 50% more likely to have low staff turnover and 38% more likely to have higher productivity.
So, while employee happiness is a valuable aspect of workplace culture, it should not be the sole focus. By understanding and implementing the broader elements of culture, small business owners and managers can create a dynamic and thriving work environment that supports BOTH employee well-being and business success. Remember, a truly effective workplace culture is one that aligns happiness with purpose, accountability, and growth.
Keen to learn more?
Keep exploring our website for further free tips/tools, or get in touch to discuss how we can help transform your workplace into a hub of engagement and business excellence.
And if and when you’re ready to take the first step, you can assess the current state of your business now, via our free, online Success Through People Scorecard (it takes about 10 minutes, is confidential, and you’ll receive a comprehensive report tailored to your business).