Building a strong and dynamic organisational culture is crucial for any business seeking a competitive advantage. Once seen as an HR problem, workplace culture should start at the very top, with leaders and people managers setting good examples.
This is the second article in this two-part series. You can also read the first article that discusses how leadership, diversity, equity, inclusion, and belonging (DEI&B), and values alignment work together to create a people-centric culture of performance. We now explore four more culture drivers that strengthen employee experience and improve business performance.
In this article, we will explore how communication, work-life balance, recognition, and development are strategic drivers for workforce transformation. When implemented correctly, they can transform any organisation into a performance-driven workplace that achieves outstanding results in employee engagement, workplace innovation, employee retention, and long-term profitability.
Let's start by taking a closer look at the role of communication when developing a strong organisational culture.
Open communication: A people-first strategy
At the core of any successful business is open communication. When employees feel heard, valued and able to share their ideas openly, they thrive. The transparency that comes with open communication helps build trust and encourages them to take ownership of their roles.
Employee input and feedback underpin a positive culture. Asking for and valuing employee input through regular surveys, feedback sessions, and open discussions enables them to speak freely about more personal matters directly or indirectly related to or influencing their work.
When employees feel like they have a voice that matters, they are more invested in the organisation's success. When they are more invested, it has a significant impact on employee engagement, workplace innovation and employee performance.
Truly engaging employees in this way is not only good for employee wellbeing and the employee experience, but it can also impact the organisation's bottom line and overall performance. The Gallup State of the Global Workplace 2024 Report1 found that organisations with highly engaged employees experience:
- 23% increase in profitability
- 78% decrease in absenteeism
- 18% increase in productivity
Additionally, open communication is vital in risk management. When organisations adopt channels for open dialogue, they are better equipped to address any concerns quickly. Open communication also leads to employee empowerment, and when employees feel they can freely express their thoughts and ideas, it can help reduce the likelihood of misunderstandings or compliance issues.
Effective communication is crucial for organisational success, and adopting the right technology can significantly enhance this process. Organisations often use annual employee feedback surveys to gauge workforce satisfaction and identify areas for improvement. One innovative approach involves using features that allow organisations to gather real-time employee feedback through short surveys accessible on self-service terminals or mobile devices.
Additionally, leveraging communication tools that offer secure, social media-style interactions ensures that every employee, including those without email addresses, remains connected and engaged. This holistic strategy fosters a more inclusive and responsive workplace environment, especially for organisations with a large proportion of deskless frontline workers.
Embedding work-life balance into your organisational culture
Everyone wants to achieve a good work-life balance, but doing so can sometimes be easier said than done. Maintaining a good work-life balance is essential for employee well-being and significantly reduces absenteeism, which is why it should be at the heart of an organisation culture.
Offering hybrid working and flexibility in the workplace enables employees to feel more in control of how and when they work. Indeed, according to the CIPD 2023 Flexible and Hybrid Working Practices Report, 46% of organisations believe that employees are more productive when working from home or in a hybrid environment. Without automation technology, providing employees with greater flexibility while creating fair and equitable schedules poses a time-consuming administrative challenge for managers. By leveraging AI-powered forecasting and labour scheduling solutions, this process can be streamlined through the automation of demand forecasts and the creation of schedules that balance customer demand, labour budgets, and employee needs.
Providing employees with self-service tools and the flexibility to manage their shifts and request time off supports a healthy work-life balance. This enhances employee productivity, boosts satisfaction, and helps prevent burnout. Additionally, it makes an organisation more attractive to potential hires, making it a desirable workplace.
Improved employee retention reduces recruitment and training costs. Organisations can ensure long-term success and stability by fostering a supportive and flexible work environment. Embracing technological advancements is essential for creating a workplace that values employee well-being and operational efficiency.
The impact of employee recognition on employee performance
Few things are more frustrating for employees than achieving or exceeding their goals and not receiving confirmation or recognition for their efforts. While constant praise isn't necessary, acknowledging their performance and achievements helps them feel valued and appreciated.
This simple act can significantly boost their motivation and performance. When workers feel their hard work is recognised, they are more likely to be engaged and more committed to achieving business goals. As they become more productive, the organisation becomes more profitable.
Employee recognition is also closely linked to better customer service and increased workplace innovation, which drive revenue growth. Employees who feel valued are likelier to go the extra mile for customers, leading to higher satisfaction and loyalty. Recognition also encourages employees to share new ideas and innovations that unlock fresh opportunities for market expansion and revenue generation.
Technology plays a vital role in improving employee recognition by capturing data on employee performance, which helps identify opportunities for acknowledgement. Insights into productivity, attendance, and work ethic further inform performance evaluations, ensuring a comprehensive understanding of employee contributions.
Documenting the promotion process and making it available via an easy-to-access knowledge base or company intranet ensures fairness, transparency, and efficiency. Leveraging these processes and tools helps organisations recognise and reward high-performing employees, fostering a healthy organisational culture and driving employee engagement and retention.
Embracing innovative technology creates a supportive environment, enhancing job satisfaction and long-term success. Recognising and rewarding employees cultivates motivation and commitment, promoting creativity and effort. This fortifies the employee-employer relationship, fostering loyalty and pride. Ultimately, prioritising employee support and appreciation elevates morale and drives sustained growth, positioning organisations for ongoing success in a competitive landscape.
The connection between skill development and profitability
Employee development is the final component of the culture equation and is vital for a strong organisational culture. Providing straightforward career and development pathways enables employees to envision their future within the organisation at every level.
While not everyone will want to become a leader or be on the executive team, knowing that the opportunity for them to build their skills and develop within the organisation can enhance employee performance and employee retention when employees feel they are supported to create and have growth opportunities, they become more engaged and productive.
Research in The LinkedIn Workplace Learning Report 20243 shows that investing in learning and development increases employees’ commitment to their organisation's success. The report found that 7 in 10 people say learning improves their sense of connection to their organisation, while 8 in 10 feel learning adds purpose to their work.
Comprehensive employee development programmes enable organisations to build a resilient and loyal workforce. Businesses can address skills gaps by focusing on upskilling and promoting from within while reducing the costs and time associated with recruiting new talent.
A well-trained workforce is better equipped to respond to evolving market demands, driving agility and competitiveness. This adaptability enhances operational efficiency, reduces downtime, and ensures organisations can seize new opportunities faster.
Additionally, investing in employee growth boosts workplace innovation, improves employee productivity, and strengthens customer satisfaction. These factors directly contribute to long-term profitability and sustainable business success.
Technology is vital in simplifying employee development, making tracking progress and addressing skill gaps easier. People Operations solutions are key to improving career development, training, and performance.
These tools provide platforms for monitoring employee growth, identifying areas for improvement, and delivering personalised training programs. They also enhance collaboration by enabling seamless communication and knowledge sharing, creating an environment of continuous learning and growth.
In summary, open communication, work-life balance, employee recognition, and development are essential to building a strong organisational culture that drives business success. Open communication builds trust and employee engagement, while supporting work-life balance improves employee well-being and retention. Employee recognition motivates and enhances performance, and investing in development ensures a skilled and adaptable workforce. These elements create an environment where employees feel valued, productive, and committed to the organisation's goals.
By prioritising the seven cultural drivers discussed in these two articles, businesses can achieve higher employee engagement, incredible workplace innovation, and long-term profitability.
If you are ready to take the next step and would like to explore a detailed guide on creating and cultivating a great workplace for all, please download our playbook. Discover the unexpected and overlooked business benefits of creating a healthy organisational culture.
- https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx
- https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/2023-pdfs/2023-flexible-hybrid-working-practices-report-8392.pdf
- https://learning.linkedin.com/content/dam/me/business/en-us/amp/learning-solutions/images/wlr-2024/LinkedIn-Workplace-Learning-Report-2024.pdf
- https://www.workhuman.com/blog/new-gallup-research-on-how-to-design-recognition-programs-that-drive-business-impact/
