When it comes to your company and your workers, how important is it to keeping your employees happy? Every business leader should understand the importance and advantages of investment in their employees. There are many benefits to keeping your employees happy; however, many business and company owners are still unaware of the power of investing in company culture. The truth is, there’s a huge return on investment for investing in company culture. Here are our top 7 reasons why investing in culture will increase your ROI:
1. Increase employee performance and boost productivity levels
Workers are more productive when they feel appreciated. A company’s employees are always willing to put in more effort when they’re given perks and benefits. It helps them feel valued and important – which can boost morale. A boost in morale is a boost for productivity. Happier workers equate to better performance and greater teamwork. The more connected an employee feels to their organization, the better the work they will produce. Unappreciated employees can quickly lose their motivation and may continue to search for jobs elsewhere – which can be a nightmare for any business.
2. Boost your financial performance
This one goes hand in hand with better performance and high productivity levels from high morale. A study by John Kotter and James Heskett shows that companies that focused on their company’s culture outperformed their competitors. An office or workplace with better morale often finds an increase in financial performances, since productivity rates are often better. Their employees tend to work harder and better in environments that focus on better culture.
3. It helps recruit better candidates
Ever wondered why job positions at companies with great employee benefits are always filled up? That’s because people only want to work at companies that can provide great employee benefits and growth opportunities. In fact, millennials and new college grads are more inclined to look for job positions that can help them grow professionally and personally. The paycheck is no longer the only factor that potential job candidates look for – employee benefits and packages are also a part of the deal. A better company culture will recruit better candidates, so it’s worth taking the time to invest in.
4. Build employee loyalty
The truth is, a happy and engaged employee is more likely to stay loyal to their current company and is less likely to be enticed away by other recruiters. An employee that is not dedicated to their job is one that is more open to other opportunities. By building and improving on company culture, companies can ensure that their employees remain loyal and dedicated to their company. By working on their company culture, business leaders can make sure that their workers are happy and content with their position within the company. This is also a smart financial move with high returns since companies will save money on trying to interview and hire new recruits.
5. Retention rates will increase and turnover will decrease
This goes hand in hand with building on employee loyalty. By creating loyal employees, business leaders will decrease their company’s turnover rate and increase their retention rates. Turnover rates can cost companies thousands of dollars since they must return to the grueling hiring process to find more employees. Employees that are happy with their work environment are more willing to stay, thus saving the company the company money and boosting retention rates. This return on investment will save business leaders and human resources plenty of headaches in the future.
6. It will attract more customers
Customer service is a huge factor when it comes to attracting new customers for any business. Customers are more inclined to visit businesses with better service since the employees tend to be happier, friendlier, and much more pleasant. By investing in your company’s culture, you’ll be creating happier employees – who will then provide better service and better experiences for your customers. This will cause a great increase in your company’s ROI and will benefit your company for years to come.
7. Your customers will notice
Believe it or not, your customers will notice whether or not your employees are happy. Happy employees tend to provide better service, which is something that all businesses tend to focus on. If a company is known for terrible service, it can drive away potential customers – which can be a devastating blow for any company. Making your employees happy is crucial for growth, and will be the best investment any company can make in the long run.
Investing in your company’s culture won’t just benefit your employees. The truth is, it’ll benefit your entire organization - and the rewards will make the initial investment worth it. For more tips on the best practices for your business, subscribe to Talking Talent.
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