Don’t Be Surprised When Your Employees Quit
Every workplace has a culture. The workplace culture of a company is important as it can help to either boost or erode your company and its objectives. Workplace culture appeals to the human capital of your organization and it links with aspects such as employee engagement, happiness, productivity, attrition rate and positive recruitment efforts.
The workplace culture is the identity of the company from the employee’s perspective. Different aspects influence the culture of the organization such as how the company looks, dress code and employee engagement.
Culture plays into employee retention. Every company wants to be able to maintain their best employees, however studies show that employees are more likely to leave a company if the culture is toxic.
A strong culture fosters company loyalty and thus reduces the likelihood of turn-overs. As seen in the graph above if the work place culture is “toxic” 90% of employees are likely to leave and go elsewhere for a 20% pay raise compared to only 34% of employees if there is a very strong/positive workplace culture. Employee performance significantly improves with a positive and encouraging company culture. A high-stress environment can literally be unhealthy for employees, resulting in lower engagement and a reduction in employee loyalty in the long-term.
Creating a positive workplace culture:
Here are three steps that companies can create a positive workplace culture:
- Create Bonds of Trust with Employees
People perform better and report a better work experience when they feel confident their employer supports and believes in them. It’s key to create trust that goes both ways. Employers desire employees who are working hard and producing positive results, and employees desire employers who are committed to their development and success. Employers who treat employees with respect—by listening when they bring up issues and attempting to resolve intracompany problems—create an environment of trust. A commitment by employers to create this type of bond gives employees the confidence that they matter and their opinion is welcome.
- Develop a Sense of Purpose with Company Goals
Every employee wants to feel like they are a contributor to their company’s success. Employers, want to hire and retain employees who are taking an active role in the success of the organization. A Mission Statement can be created to communicate why the company exists and what demonstrates success. This can provide a metric by which to judge performance.
- Self-Assessment Keeps Office Culture Running
Once you’ve built a positive culture, you need to maintain it—just as you would maintain your office building to ensure its structural integrity. Regular meetings with employees, anonymous feedback forms, engagement surveys, and other methods of communication delivered on a systematic basis can ensure intracompany issues are resolved quickly, and that employee actions are consistent with the company’s desired goals. They can also help to identify problem areas or parts of the company culture that employees are dissatisfied with or that are causing undue stress.
Many firms take advantage of the opportunity to outsource their HR services for the additional benefits that they receive.
- Saves money/Cuts Costs – Perhaps the biggest and most significant benefit that is received from outsourcing your HR functions is that it saves the firm money. The firm no longer has to hire a large amount of people that will deal with critical HR tasks while at the same time still maintaining that compliance with all employment laws.
- Reduces risk by ensuring compliance with employment laws – The main function of a HR company is to monitor employment policies and practices to ensure that the company and its employees remain compliant while attending to the best interests of the company.
- Gain Access to top-level recruiters and HR technology without the additional cost of having to invest in it – Recruiting the best talent for your company is critical and can be determinant in your company’s success or failure. Using HR firms can help your company to gain access to their talent/expertise; technology as well as industry contacts that they would have gained. This will position your company to utilize top HR expertise and skill without any additional overhead costs.
- Focus on core business module – Outsourcing your HR functions will allow your company to ensure that your company is able to focus on its core business while ensuring that current staff is taken care of. It allows your current HR personnel to spend more time focusing on implementing strategy while the HR firm will focus on administrative HR duties.
Studies conducted shows that outsourcing a portion of your HR services have proved to be beneficial to many companies in enhancing their business module and enhancing their success.
Top HR Functions to Outsource
- Benefits Administration
- Performance Management
- Policy and Compliance
- Labour Relations
- Attendance Management