Company Culture

Why Work Culture Directly Impacts Employee Performance

A recent study from researchers at the University of Warwick, cited by Entrepreneur magazine, revealed that happiness makes people 12% more productive. Said the authors of the study, Professor Andrew Oswald and Dr. Daniel Sgroi from the Department of Economics at the University of Warwick:

“Companies like Google have invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37%… Under scientifically controlled conditions, making workers happier really pays off.” Added Dr. Sgroi: “The driving force seems to be that happier workers use the time they have more effectively, increasing the pace at which they can work without sacrificing quality.”

What contributes to this happiness? There can be many factors – from family life, to favorite activities, even literature, music, or movies – but work culture can also play a major role in employee happiness. Work culture is a collective term for a handful of the most important factors that are under an employer’s control, and as such, it is highly relevant for every manager. The underpinnings of a strong company culture include factors related to an employee’s physical health, emotional well-being, mental clarity, and can help give their work a greater sense of meaning. Work culture is rooted in the beliefs and values that an organization establishes, and when these are clearly communicated throughout the organization, they can help boost employee engagement and motivation. Here’s why:

Worker trust is linked with shared company culture

Optimal employee performance depends on the ability of employees to trust their organization. Writing in the Harvard Business Review, Stephen Covey and Douglas Conant assert that employee trust is essential to a company’s financial success. To truly build a company culture around the key value of trust, it is required to, “personally celebrate employees for their contributions.” This climate of trust, supported by recognition, results in a positive company culture, which in turn solidifies your financial standing. Trust can also be established during periodic employee performance reviews, when managers get the chance to listen to their employees and learn what makes them happy, including what they want in a positive company culture.

“Why we work determines how well we work”

This axiom was presented by researchers who studied scores of workers and companies worldwide. If people perceive underlying purpose in the work they do, they perform better. One example given by the authors had two groups of workers that were assigned to analyze medical images. The group that was told the images contained cancer cells spent more time and did higher quality work than the control group who were not given any context for the task. When you convey the importance and coherence of your company’s purpose, you help your employees to feel that their work has meaning. Your company’s cultural values and mission statements play a larger role than you think. Reinforcing cultural values that resonate with your employees on a personal level directly impacts their motivation and drive to perform better at work.

A strong work culture balances out corporate change

“Fast-paced change, uncertainty, and volatility are the lexicon of our work lives,” according to Peter Cheese, the CEO of the Chartered Institute of Personnel and Development (CIPD). Corporations are changing fast in order to keep up with emerging trends, and they need their employees to be agile as well. A strong organizational culture keeps everyone aligned and engaged, so that riding out changes becomes a mutually shared effort rather than a divisive or damaging force. When employees feel left out of the loop or are unaware of the company’s bigger picture, their performance and motivation suffers as a result. Keep your employees informed on changes happening within the organization, so they know what’s ahead for the business and the impact their role has in all of it.

Industry research on the importance of a positive work culture reveals that 87% of organizations agree that culture and employee engagement are among their most urgent challenges. To learn more about developing your company culture, download Achievers’ e-book: All for One and One for All: Uniting a Global Workforce with Company Culture.

ebook CTA Blog Button

 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *