The Logic of Employee Culture

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The logic of culture begins and ends with your employees

Employees are investments – not just the cost of doing business.

employee culture drives engagement
You’ve got labor costs, no doubt. According to the U.S. Department of Labor, most companies find it’s the biggest cost they face. In some industries, the percentage may rise as high as 30% of revenue. In many cases, the cost of labor is second only to the cost of real estate.

An employee culture mindset is non-negotiable if you want to make real improvements to employee performance.
For small businesses, what’s spent on employees can displace earnings in a heartbeat if cultural risk factors for turnover and low productivity aren’t actively managed and corrected.
At ReviewCloud, we want you to look at employees as investments. Once you do, you’ll rethink every opportunity you have to maximize your portfolio.

Investments in employee culture pay real dividends.

Remember the good old employee-service-profit chain? Great employees lead to great service which results in big profits. Sounds good, but it’s incomplete. Instead of profit alone, incorporate the logic of employee culture:

  1. I have great employees.
  2. So, my stuff is the best.
  3. People want to buy it.
  4. We’re really successful.
  5. So, people want to work here.

Improving talent through retention strategies aimed at developing your employee culture will lead to the highest rate of returns.

A strong employee culture is engaging.

Engaging employees equals promoting performance.

Companies need a strong employee culture. They provide a real competitive advantage. So, how do you get one?
There’s tons of great strategies. “By accident” isn’t one of them.
Focus your approach. There are countless examples of organizations who used purposeful strategies to create world class organizational cultures.

    • Zappos focuses on hiring for cultural fit.
    • So does Wrike.
    • Quora pairs new hires with mentors.
    • Warby Parker dedicates an entire team to employee culture management.
    • Southwest focuses on mission, exciting people to become part of a larger purpose.
    • So does REI, who promotes concern for the environment through its product and service.
    • Twitter focuses on team-building as often as possible.
    • The “Chevron Way” focuses on safety and employee support.
    • SquareSpace has a flat hierarchy and minimal bureaucracy.
    • L.L. Bean pushes peers to recognize one another.

The list goes on, but there’s one common thread. They focus on people. The compensation, benefits and perks we commonly associate with the “great cultures” of “cool companies” came after their success. Not before it.
Google became Google, the employee culture jewel of industry, not because it provided nap-pods for its employees. It’s because their employees worked to exhaustion to make Google the giant they are today.
Engage employees to improve performance. Improve performance to strengthen culture. Strengthen culture to engage employees. It starts with communication.

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