How Does Company Culture Impact Employee Engagement?

12 November, 2020
How Does Company Culture Impact Employee Engagement?

Company culture and employee engagement go hand-in-hand, affecting each other in many different ways.

In a 2017 Gallup workplace survey, 63 percent of respondents admitted to not being engaged in their job, 24 percent admitted to being actively disengaged and just 13 percent said they are actually engaged at work. Based on that information and further analysis, Gallup discovered workers who are actively disengaged cost American companies approximately $480 billion to more than $600 billion annually in lost productivity.

Additionally, a recent Columbia University study indicated increased odds of turnover at companies with low rated cultures compared to those with high-rated cultures.

A vibrant company culture is not just associated with lower turnover, but also with high worker engagement. Companies with engaged staff members and a vibrant culture have a competitive advantage, which makes analyzing and improving culture very important in today's economy.

Assessing Your Corporate Culture

Companies that recognize the impact of company culture on employee engagement prioritize having their finger on the pulse of employee engagement.

At smaller businesses, the best approach to evaluating engagement is through personal relationships and on-going conversations with employees. That said, it can be challenging for even modest-sized companies to continuously get feedback and track employee engagement. Performance tracking tools and worker surveys are critical in gauging both current status and trends over the course of time. If framed correctly, engagement software can show employees that management values their opinions and job satisfaction, which can have a positive impact on its own.

Some businesses use the employee survey tool TinyPulse to ask both "big questions" on company culture and to get in-the-moment feedback. Through surveys and other feedback platforms, TinyPulse and comparable tools can evaluate and track employee engagement and overall culture.

Adjusting Your Culture

As soon as you understand how your staff members feel about both your culture and the current state of affairs, it is critical to figure out how your company's stated values and practices connect to the culture you're trying to build. If you haven't attained your desired culture, perhaps there are deliberate steps you can take.

When attempting to change your culture, top-down support is crucial. Studies have revealed staff members supervised by engaged supervisors are much more prone to be engaged themselves compared to those supervised by disengaged supervisors.

Your official value statements are also critical to both company culture and employee engagement. When done right, value statements should act as a framework for change and recognizing individuals who are working toward the culture you are trying to build. During staff meetings, make it a point to acknowledge those modeling your company’s stated values in clear and obvious ways; ideally in ways that can be backed by specific metrics. When employees know where the bar is set, they can take steps to uphold those company-wide values.

We Can Help Your Company Build a Vibrant Culture

At Quanta, we help companies achieve all kinds of organizational objectives, including building a stronger company culture. Please contact us today to find out how we can help your organization.

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