For organisations struggling to see positive progress could be overlooking a crucial aspect: company culture. It’s about more than just employees getting along, a strong company culture cultivates growth. Employees who work together as a team and feel recognised for their efforts are more enthusiastic about their work. The result is increased productivity and a shared goal to see the company succeed.
According to Forbes, companies that make their culture a priority saw a 33% increase in revenue. The reason for that is very simple. When employees are happier, they are motivated to work harder. The Department of Economics at The University of Warwick reported that content employees are 12% more productive than those who aren’t.
With the direct link between company culture and a business’s success, it’s clear that the office environment should be focused on. This becomes the task of the human resources department, to shape the culture and oversee it. Let’s take a look at what contributes to a strong internal culture and how it is maintained by HR.
Companies that offer human resources software solutions in the UK include:
What Is A Company Culture?
Company culture refers to the day-to-day atmosphere within an organisation. Moreover, it is the shared goals, norms and way that teams work together. It reflects the personality of the company to outsiders and how employees interact with each other.
A strong company culture should align with the company’s vision and mission. That way, an environment for success is created when employees and management understand what the organisation’s goals are and how to go about achieving them cohesively.
How HR Develops A Company’s Culture
Developing and managing a company culture is an ongoing process. HR departments have the responsibility of working closely with management to define what their culture should look like, and identify areas that could be improved. Once this has been outlined, it becomes the role of HR to cultivate it.
Recruiting New Hires
HR teams are usually tasked with searching, interviewing and onboarding new talent. When bringing in new employees, it is the responsibility of HR to see if they are a good fit for the company culture. This is determined in the interview stage, through behavioural assessments. Candidates can have a wealth of experience or skills, but having the same values as the company is equally as important.
The onboarding process is a way for HR to set the tone for new employees from the start. It’s an opportunity for them to communicate the company’s values and goals, and offer support to the new hires as they settle in.
Providing Performance Management
While management sets the expectations for performance, it’s up to HR to assess it on an ongoing basis. In doing this, HR can recognise and reward employees for good performance. When employees feel that their work is being acknowledged, they are more likely to continue putting in extra effort.
Maintaining a strong company culture is facilitated through regular feedback. HR should create an environment where open communication is valued, and employees feel comfortable sharing their thoughts. This is usually done through performance reviews or check-ins to have one-on-one time with individual employees.
More from Business
- Top Industries for Investment in Paraguay
- Jean-Claude Bastos: How Unconventional Investment Methodology Built a Multi-Billion Global Portfolio Through Market Dislocations
- 10 Tools to Test and Monitor Your VoIP Performance
- How To File Tax Returns For Your Side Hustle
- How To Launch A Startup In Barcelona
- What Happens If Your Business Broadband is Too Slow?
- How To Start A Business In Kosovo
- How Poor Connectivity Is Costing Your Business More Than You Think
Focus On Employee Well-Being
Satisfied employees aren’t just more productive, they are also more likely to stay with the company. Organisations who have happy employees have a 22% lower turnover rate according to Gitnux Market Data. If they feel valued and that their emotional well-being is prioritised, they can see themselves having a long-term career with the organisation.
Similarly to performance reviews, HR departments should have an ‘open-door’ policy where employees can openly express their feelings or concerns. Employee surveys are another way for HR to assess their well-being and how it is contributing to the overall culture.
Transparency When Communicating
The foundation of any strong company culture is effective communication. This applies to between management and employees, as well as among employees themselves. HR’s role is to promote open communication between all levels of the organisation for everyone to have the same understanding of goals, values or specific tasks.
This level of transparency creates trust within the company which further reinforces a solid internal culture.
Can A Company’s Culture Succeed Without HR?
Not all companies require an HR department, especially for smaller businesses with only a few team members. These can still have a strong company culture, but HR does play a significant role in maintaining it. For larger organisations with hundreds of employees, an HR department becomes crucial to ensure that every employee feels heard. This creates a sense of cohesiveness, and a strong company culture can develop from that.
