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December 28,2019

The Importance of a Company Culture and HR’s Role

Exceptional company culture is hugely important to a company’s success and overall health. After all, employees are the number one asset to a company.

On the flip side, a toxic organizational culture can create complete chaos, conflict in the workplace, and an increased employee turnover rate. Employees will be less productive, lack motivation, and lack the urgency to get the work done.

NimoHR | The Importance of a Company Culture and HR’s Role

Thriving company culture can do just the opposite; It turns people into a team. It provides inspiration and direction toward a shared goal. It creates groups that will go above and beyond and employees who will go the extra mile to see the company succeed.

It is HR’s role to be intentional in creating, developing, and maintaining company culture.

Strong company culture helps to retain the best employees. Unsurprisingly, employees who feel like they’re a part of a community, a family, rather than a cog in a wheel are more likely to stay at your company. Don’t believe me? Ask any top performer what keeps them at their company, and you’re bound to hear this: the people. It’s because a workplace culture focused on people has profound appeal.

Let’s look at it from a financial standpoint. If employees stay with organizations because of the people, an exceptional company culture will drastically reduce the employee turnover rate. So how does that transfer to dollar signs? Well, SHRM has studies that predict every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. That means a manager making $80,000 a year costs $40,000 to $60,000 in recruiting, training, and overall operational expenses. Creating a company culture has a wicked return on investment (ROI).

Creating a company culture is not easy. It takes time, hard work, consistency, core values, and an HR guru to drive it. It doesn’t happen by accident, and it’s not a free lunch once a month; it is so much more than that.

It starts with Recruiting.HR needs to grasp the skills and characteristics that will be successful within the organization. They need to deeply understand how the team runs and what makes them tick. HR must look at recruiting as a marketing and sales position rather than an administrative task.

Next, it is essential to have an Onboarding process that sets the employee up for success. Did you know, the highest turnover rate is always within the first six months of employment. But if a company culture embraces and welcomes new hires to the team, it lowers the odds of a new hire leaving within the first six months. HR is a friend and a transition agent to the new hires.

Build a Culture.

It is HR’s role to be intentional in creating, developing, and maintaining company culture. Be a servant leader. Be a team player. Think of an employee as an asset rather than a number. Show up with your heart and not the finances. It means dropping everything to ensure an employee’s insurance issues and questions are resolved. Or it is creating a career development plan so they see a future with the company. Or listening to an employee when he or she needs to vent frustration and tell them it will be ok while finding a solution. It is organizing potlucks and teambuilding activities. It advocates for the employee and is the company’s most prominent promoter. It means creating a second family called your coworkers. Make the work environment where employees look forward to coming to work. Not because they love the work, or maybe they do, and that’s a bonus, but because they love the people work with.

If you like your job and LOVE the people you work with, you will never have to work a day in your life. Create a culture that supports this. The organization’s culture should be the backbone of the company.

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