When it comes to company culture, even the most successful companies can find themselves stuck in a rut. It can be difficult to tell when things aren’t working like they should be, and even more difficult to tell if your company culture is to blame. However, there are three key signs that can show your company culture needs some work.
Read on to learn what those signs are, and how you can improve.
Poor Company Culture Sign #1: Low Retention Rates
In a recent study, 87% of human resource leaders said improved retention was a critical priority. A low retention rate/high turnover is a leading indicator. Are you hiring based on shared ideals and values? If not, you can bet that’s going to have detrimental effects on your retention rate. Why would employees want to keep working with coworkers and leaders who don’t share their ideas? Feeling a sense of belonging is essential to the human experience, and it absolutely extends into the workplace. Of the 70% of employees who did not have a best friend at work, 63% were not engaged and 29% were actively disengaged.
Poor Company Culture Sign #2: Low Engagement Rates
A recent study by Gallup revealed that 16.5% of employees are actively disengaged. All things considered, that may seem fairly low. However, when you know that active disengagement costs between $450 billion and $550 billion per year in the U.S., you start to pay close attention. And if your company culture is stagnating, you might have much higher than 16% of employees disengaged.
In fact, only 1 in 150 employees who say their organization does not have a set of values are fully engaged. Those values are what define and drive your company culture. They ensure your employees know what they’re working for and gives them purpose. If you’re seeing very low engagement rates at your organization, take a good look at your culture and values.
Poor Company Culture Sign #3: Low Application Rates
You appeal to talent through your employer brand. If you’ve experienced low application rates, it may be time to evaluate your employer brand and what it’s communicating with job seekers. One contributing cause may be your online reputation as an employer. Does your company have a bad reputation as a workplace? You might not even be aware of it! Take a look at employer review sites like Payscale and Glassdoor to see what’s being said about your company. 69% of employees stated they would not take a job with a company that had a bad reputation, even if they were unemployed.
The Solution? Corporate Social Responsibility
Low retention, engagement and application rates are going to take a serious toll on your organization over time. If you don’t get your company culture out of that rut, the damage may be irreparable. Find something that reignites your employees’ passion for their job, and fast. Fortunately, there’s a solution to all of your problems: corporate social responsibility (CSR).
By investing in corporate responsibility programs like employee volunteer programs or matching gifts, you will attract, engage and retain the right talent for your organization. Here’s how it works: Your employees have values and ideals, and your company does as well. CSR provides your employees with opportunities to make a difference in the world and the causes they care about. Providing paid time off for volunteering or hosting a company volunteering event can be a great way to engage employees off-site by giving them a chance to step out of the office, bond with co-workers and help the community.
You may be surprised to learn that 76% of Millennials say they would take a pay cut to work for a socially responsible company, and we expect the next generations to be on board as well. Today’s employees are eager to make a difference through their work, and CSR provides them with that opportunity. It’s one additional asset companies need to attract and retain talented employees. And while most of us don’t have the time or energy to make company culture a 24/7 priority, investing in CSR is a way to get your culture jumpstarted!
About the author: Liz Bardetti, is the Marketing Director at CyberGrants with seasoned advertising and marketing professional with 15+ years experience, including work for Gatorade, Welch’s and most recently, CyberGrants. CyberGrants is the preferred CSR software provider to the best philanthropic corporations around the globe.