The Impact of Company Culture on Employee Engagement

Have you ever thought about what makes an exceptional organization perform at a higher level than its competitors? In many instances, two main factors come into play: company culture and employee engagement.

Each organization has a unique purpose and way in which it executes processes and procedures. This is its culture. While many believe that a company’s culture is tied to its mission statement, it is actually an outcome of the behaviors, attitudes, beliefs, and values of the employees in the organization.

Any culture, whether it is ethnic, geographic or a company, will naturally undergo changes and require consistent effort to maintain an environment that is constructive and supports their desired outcome. Companies that invest the time to foster the growth and development of their workplace culture have a competitive advantage, as it directly impacts the performance of their employees.

While typically considered the responsibility of the HR department, more companies are starting to include cultivating a positive work culture as an objective of their executive team and an integral part of their business strategy because of the many impacts –– one of the most important being employee engagement.

What is Employee Engagement?

Employee engagement should not be confused with employee satisfaction, as it goes far beyond simply being content at your current job.

An engaged workforce will understand its purpose and impact on the company as a whole, improving their chances of success. It encompasses how passionate employees feel about their position, their level of commitment to the organization, and the additional effort they are willing to put into their work. Ultimately, employee engagement is the driving force behind their performance.

Let’s take a closer look at how an attractive company culture promotes employee engagement.

Unifies and Connects Employees to Your Mission

Creating an attractive workplace culture shouldn’t be left to form naturally, but should be clearly defined. By providing your employees with a clear understanding of the vision and objectives of the company, the values and competencies expected and the tools and processes available, you can unify your workforce and connect them to your strategic goals. This improves the relationships and dynamics within your teams, as each individual understands the importance of their role to the overall success of the business.

Improves Workplace Productivity

The connection between employee engagement and productivity has long been a topic of interest in the business world. Gallup’s meta-analysis determined that employee engagement showed 21 percent higher levels of profitability. This is because when employees in your organization understand the role they play in your collective success, they are willing to go the extra mile to execute their responsibilities at the highest level. This increase in productivity can be felt throughout all areas of the organization, as it impacts your profitability and ultimately your bottom line.

Motivates Employee Performance

According to Forbes, employees who feel their voice is heard are 4.6 times more likely to feel empowered to perform their best work. As influential figures in an organization, it is up to managers and executives to personify the workplace culture and increase employee engagement across all levels to achieve their goals.

People are motivated in different ways. While some may find positive reinforcement and praise to be motivating, others may prefer tangible rewards. Determine what motivates your employees so you can encourage them to achieve not only their personal career goals, but your company goals as well.  

Encourages Career Growth

An engaged workplace encourages and assists employees in developing their skills and growing their careers. The connection they feel to the organization will drive them to continue to grow and be a valuable contributor to the company. This strengthens your company as you develop enthusiastic leaders that will model and drive forward your company’s culture for new employees down the road.

If continued education, development and advancement is not a fundamental part of your organization, employees may begin to feel stuck in their position –– resulting in an uninspired and unmotivated workforce, and an increased chance of employee turnover. On the other hand, if employees can see how sharpening their skills and expanding their capabilities will lead to future opportunities, they will feel a deeper level of dedication to their objectives, connection to their career development and commitment to your overall business’ success.

Greater Retention of Talent

When employees feel a deep connection to their organization and are recognized for their work, they are more likely to stay loyal to the company and committed for longer periods of time. By investing in a culture that actively expresses its appreciation, you strengthen the relationship and dedication between employees, managers and the organization as a whole.

After investing in new talent, the last thing you want is to have them leave as a result of a poor fit. This is where having a clearly defined culture that promotes employee engagement is beneficial. By incorporating these details at the beginning of the search process, you reduce the risk of employee turnover - which could have a significant bottom-line impact in terms of wasted time, and resources and customer impact.  

Ensure New Talent Aligns With Your Company Culture

Finding employees that represent your values and embody the company culture is fundamental to the long-term success of your organization. If you are looking for professional assistance to find and determine the best fit for your organization, consider working with an executive search firm such as Kinsley Sarn.

Our executive search process at Kinsley Sarn begins by taking the time to get to know the ins and outs of your company. Using this in-depth analysis, you can assess potential new employees based on more than just their qualities, skills and career experience, but rather how well they fit with your culture. If you take this into consideration from the very beginning of the search, you assure an easier onboarding process for all members involved, along with increased employee engagement from the new hire.  

Through our Executive Assessment Services, we will provide you with the necessary insights to determine effective leadership and mitigate the risk of a mis-hire. Even after they are hired, we offer transition services to guarantee proper training and development of your new hire, so they have a clear understanding of their responsibilities in order to succeed at your organization.  

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Contact us to work with our team of experienced former executives to preserve your workplace culture while finding extraordinary talent for your business.

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