10 Stats That'll Make You Prioritize Company Culture
Culture is something leaders and organizations recognize as important to invest in, but many organizations struggle with creating great work cultures. How employees feel about working in an organization has a huge impact on retention, productivity, and attracting talent. Yet, we still have a long way to go in creating company cultures that inspire.
Check out these stunning stats that highlight the challenges in creating strong company culture.
1. 47 percent of people seeking a new job cite company culture as the main reason for doing so.
Bad managers, long hours, and stress are often the first things that come to mind when thinking about the why of a job switch. While all of those things are super important, culture is even more of a huge determinant of retention than we may think. While salary is an important consideration for changing jobs, employers should look beyond salary to attract top talent.
2. A study showed that the likelihood of job turnover at an organization with positively reviewed company culture is a mere 13.9 percent, compared to turnover in low company cultures at 48.4 percent.
Turnover is an important metric that not only says a lot about your culture, but can also be used to quantify culture building initiatives. Considering the fact that losing an employee can cost between 1-2x their annual salary, you can begin to get an idea of how much bad culture is costing you.
3. 75 percent of employees say they’ll stay longer at a company that listens to their feedback and actually acts on it.
Companies that do feedback well not only have systems in place to collect that feedback, but they’re also actively acting on it. Gathering employee sentiment without an actual follow up can actually harm employee perceptions of the organization. So if you’re going to carry out surveys, make sure you’re ready to make some of the changes that are needed to make your people happier.
4. 78 percent of executives said culture is among the top five things that add value to their company.
Leadership recognizes the value of investing in corporate culture. Acknowledging it as one of the top five things that adds value to their company just goes to show how top of mind this is for executives.
5. Only 15 percent of executives said their own corporate culture was exactly where it needed to be.
While they may recognize the importance of culture, a dismal 15 percent of leaders think they have it figured out. There’s clearly a gap between what is expected of company culture and what’s actually happening.
6. 87 percent of organizations cite culture and engagement as one of their top challenges.
Implementing a cohesive culture and fostering engagement with teams is tough. There may be more clear-cut answers to sales, marketing, and development goals, but figuring out people is a whole different ball game. Between the different preferences of people in an organization and the difficulty in measuring people practices, it’s no wonder culture is so daunting.
7. 52 percent of HR professionals cite management buy-in as the biggest barrier to strengthening culture.
While executives recognize the importance of building culture, they’re not necessarily all buying into it. The disconnect here lies primarily in HR teams struggling to tie people practices to the bottom line. It can be so difficult to put an actual number on people, but there are ways to get close and create a compelling story.
8. Only 54 percent of employees recommend their company as a place to work, according to Glassdoor.
The fact that just a little over half of employees recommend their companies as a place to work shows how massive the culture problem is.
9. Companies with an engaged culture have 30 percent greater customer satisfaction levels.
They also experience over 15% increase in productivity, and many more benefits. Not only does employee experience benefit from better people practices, but these translate to in-market rewards for companies that are doing it right.
10. More than 87 percent of the world’s workforce is not engaged, yet engaged workplaces are 21 percent more profitable than those with lower levels of engagement.
An engaged workforce can make all the difference. So what are we waiting for? Let’s make culture happen.
Looking for ways to improve culture and employee experience? Schedule a demo with Five to Nine and leverage feedback and data to make informed decisions about where to spend your people dollars.