Company culture defines how team members operate within the framework of a business and interact with each other. It's an intangible thing most of the time, but a solid, resilient culture can be a massive benefit to the business.
Excellent company culture increases employee retention and can even motivate workers in a way nothing else can. But measuring the impact of company culture on a business's production can be difficult because of how intangible it is. There's no robust methodology for equating benefits from positive company culture to return on investment (ROI).
Below, 10 professionals from Forbes Human Resources Council explore what factors businesses can use to determine how their company culture benefits their enterprise tangibly.
1. Evaluate Morale, Productivity And Turnover
The value of a company’s culture can be measured through employee morale, engagement, productivity and turnover. When a company has a positive culture with clear communication and goals that uphold its mission and values, the return can be seen in the bottom line. Costs are lower when employee retention and productivity are high because people are enjoying their work and those they do it with. - Laura Spawn, Virtual Vocations, Inc.
2. Run Employee Surveys And Act On The Results
You should regularly ask staff what matters most to them. Companies that keep staff happy and engaged will notice business performance improvements over time. It goes beyond doing surveys though -- you need to listen and take action on the feedback, so employees see action being taken. - Kim Pope, WilsonHCG
3. Define What Your Culture Aims To Achieve
Company culture is something that exists. Full stop. The question is, is it the culture you want/need to have? Cultural change is challenging and time-consuming. The metric for company culture is defined by what you want to achieve. Higher engagement? Less attrition? Higher performance? These aspects are measurable and could be used to scale the success of your cultural change efforts. - Reinhard Guggenberger, FalconStor
4. Know Your Cultural DNA
Understanding your organization's cultural DNA can help you define your culture and know how to be agile and authentic in a changing world. So how do you measure and understand your cultural DNA? Like any scientist, you start by analyzing the data. Synthesize the findings into a report that defines the unique attributes and cultural patterns, and serves as a benchmark. - Cat Graham, Cheer Partners
5. Tie It To Your Values
A recognition program tied to your company’s values gives you great insight into your company culture, shining a light on the values most lived, as well as the ones that are not often celebrated. If teamwork is the most celebrated value and safety is the least, you can rally the team with focused training to focus on important safety initiatives and driving awareness of their importance. - Jennifer Reimert, Workhuman
6. Develop Lead Measures For Company Culture ROI
One way I measure the ROI of culture is by developing lead measures (e.g. employee behaviors) that are incentivized and designed to lead to specific organizational outcomes. Choosing the measures is the hardest part -- a direct relationship between the lead measures and the results must exist. When done right, employee performance is maximized and the company's bottom line reflects the results. - Dr. Timothy J. Giardino, Cantata Health & Meta Healthcare IT Solutions
7. Look For Cultural Alignment
Culture is one of the most powerful business performance drivers. It has a tremendous impact on ROI in terms of retention, recruitment and goal achievement. Culture, however, can't be viewed simply as perks and social activities, but as the foundation that informs employee engagement. It is critical to measure, manage and invest in cultural alignment to ensure organizational health. - Natalie Baumgartner, Achievers
8. Assess Sentiment And Operational Data
A great company culture generates positive energy which shows up in positive business metrics. The ROI of culture can be measured by looking at sentiment data from employees layered on top of operational HR and business data. Together, these inputs paint a true picture of how work gets done and the impact of that work. It takes both data sets to be able to show hard returns of soft concepts. - Bianca McCann, SAP SuccessFactors
9. Consider Your Profitability
For decades, C-suite executives have recognized that company culture contributes to profitability. When employees buy into the vision and mission of the organization, their performance and productivity increases, leading to higher profitability. Culture is not only important for the bottom line, but also employees. When they are content in their work, they are more likely to be engaged and stay. - Cameron Bishop, SkillPath
10. Focus On Company Uniqueness
A company’s culture is equivalent to company uniqueness. And being specific on developing a unique corporate culture can really help you attract people that are motivated by the company’s work environment. From this starting point, you can then measure "time of employment," which is a sign of loyalty. - Anne Iversen, TimeXtender
