Beyond Nap Pods: The Importance of Creating a Positive Company Culture
By Dick Resch
It was the final straw. Three coworkers, already aggravated by their callous manager and consultants, learn about companywide layoffs. Angry, they grab a baseball bat and smash a printer to pieces.
Fortunately, while such scenes abounded in "Office Space," most of us leave our Louisville Sluggers at home. But TPS reports and toxic work environments still abound. Just 9 percent of Americans rate their company cultures favorably.
If companies want to change that statistic, they must foster a sense of community. By doing so, they'll save their printers -- and increase employee productivity, reduce turnover, and boost profits.
When employees love coming to work, companies prosper. Stock returns for Fortune's "100 Best Companies to Work For" are nearly double those of the general market.
Unsurprisingly, those firms have less turnover. That's a major boost, since replacing an employee can cost double her salary.
Companies don't just luck into having great cultures. And they can't buy loyalty merely with perks like nap pods. It takes deliberate effort to create a culture that employees want to embrace.
Some firms create tight-knit cultures with a particular office layout. Yelp, for instance, wanted to encourage interaction among hundreds of employees spread out over a dozen different floors. So they designed open common areas and coffee bars on different floors. A year later, Yelp saw a 62 percent revenue boost.
Other companies utilize sponsored volunteer activities. For instance, PCL Construction organizes Habitat for Humanity homebuilding events where workers apply their trade skills to serve their communities. Such projects give employees time to bond with co-workers.
These programs boost morale -- and attract and retain talented employees. The Stanford Graduate School of Business found that 97 percent of business school graduates are willing to make less to work for a more socially and ethically responsible company.
Other firms improve culture through recognition programs that showcase their value. That's crucial, because employees who don't feel appreciated are twice as likely to quit within a year, according to Gallup.
Namely, an HR software company, convenes monthly staff meetings to praise high performers. This is a savvy strategy. Polling shows that one in four workers' most memorable recognition comes from high-level executives.
Employers can also create a great culture by showing employees they have careers -- not just jobs.
One way to do that is to clarify avenues for advancement. At KI Furniture, which I head up, we partner with Northeast Wisconsin Technical College to sponsor a Management Training program for employees with high potential. Investing in their professional development shows them we care about their long-term success and helps us mold workers into the company's future leaders.
Businesses can employ many strategies to create a great company culture -- but no shortcuts. If executives don't "get the memo," they'll continue to miss opportunities to create a culture that propels productivity and generates loyalty.
Dick Resch is CEO of KI Furniture in Green Bay, Wisconsin.
