Businesses confess to making the wrong choices in building company culture

A compelling organisational culture is a sign of a successful business. It helps attract and retain the right people, sustain customer loyalty and build an organisationís wider reputation. Yet many companies are investing their time and resources in building culture in the wrong places, according to research by Penna, the human capital management consultancy.

In a sample of HR Directors, the importance of company culture in the success of a business is agreed. Of those questioned, 94% feel their culture is distinct, with 64% agreeing that this is a factor in employee retention and 76% believing it is a main factor in attracting candidates. Company culture is also having an effect on financial results with 64% saying there is a clear link between culture and the bottom line.

The HR Directors were also asked to rank the factors that most aided building a sustainable and successful culture. The top ranked factors were:

ï Rewards for specific behaviours or achievements (94%)

ï Communication of guiding principles and values (88%)

ï The look and feel of the company (85%)

ï Recruitment communications and process (76%)

However, when asked whether they do these well, the results were very different. For example, only 29% feel that they reward behaviours or achievements whilst only 20% feel that their recruitment communications and processes are done well. This begs the question as to why activities judged as important are not being carried out effectively.

ìIt is great to see that organisations have woken up to the benefits that having a strong, identifiable culture can bring to attraction, retention and engagement of employees,î commented Gary Browning, CEO, Penna. ìWith competition for talent growing fiercer all the time, it is essential that companies differentiate themselves as employers and get the most discretionary effort from employees.î

ìBut despite this realisation, our research shows that it is time for companies to really invest in making it happen, in terms of rewards and motivation, internal communications and employer branding,î continued Gary. ìOnly through this commitment and effective measurement, will businesses see the true benefits to employees and ultimately the bottom line.î