Whether you’re a long-established organization or a startup that is just beginning to form your mission and values, it’s essential to the vitality of your business that company culture be maintained and, if necessary, completely overhauled.
One of the most comprehensive ways to enable all current and future employees to be on the same page with your positive company culture initiative is through a competency management system. With a way to track, manage, and build competencies, your organization will have the tools necessary to cultivate the workforce that will most support and enhance your company culture.
What is Company Culture?
Your company culture is your business’s “personality.” It’s made up of your company’s ethics and values, as well as your mission, expectations of your workforce, and the overall work environment.
How Does Company Culture Affect Your Organization?
A more efficient and precise hiring process, higher performance, and high quality deliverables are just a few benefits of a positive company culture. Here are some ways that company culture can influence your company’s daily operations:
The ability to attract and retain top talent. If your company strives to hire top talent, having a positive company culture is no longer discretionary; it’s essential. A recent study showed that 41% of candidates search for information about company culture before they apply. This might mean searching your company website, checking out glassdoor.com reviews, or learning about your company through current and past employees. The internet makes it incredibly easy for potential hires to find out what it’s really like to work at your organization.
Organizational performance and productivity. You’ve heard the saying, “you reap what you sow.” If a company creates a stressful and anxiety-inducing company culture, employees can’t perform well. Or, if they do perform, it may be at a price. In an excerpt from the Harvard Business Review states,
“In a large-scale study of over 3,000 employees conducted at the Karolinska Institute, results showed a strong link between leadership behavior and heart disease in employees. Stress-producing bosses are literally bad for the heart.”
Studies like these show that not only are employees less productive in a poor company culture, they’re more likely to get sick. This drives up the cost of healthcare for the company, ultimately affecting your organization’s bottom line.
Top talent won’t stay with an organization that upholds a poor company culture. Research shows that workplace stress can lead to a 50% increase in voluntary turnover. And the cost of replacing talent adds up. It’s estimated that replacing one employee can cost upwards of 20% of that employee’s salary.
Clear Company Culture Means an Efficient Hiring Process
Having a clear company culture makes the hiring process easier for potential hires and your HR department alike. It allows people who are interested in working for you to understand whether or not your company is a good fit for them. A clear company culture also enables those in your HR department to quickly distinguish between candidates who will uphold all aspects of the company culture and those who just aren’t right for the company. According to Forbes, 89% of hiring failures are due to a poor cultural fit.
Having a clear company culture makes it easier for potential hires and your HR department alike. It allows people who are interested in working for you to understand whether or not your company is a good fit for them.
Hiring for Culture Over Competencies
In the hiring process, it’s likely that you’ll come across candidates who are a perfect fit culturally but their competencies may not be up to par. Suppose candidate X shares your organization’s values and vision while candidate Y is less of a cultural fit. But candidate Y is the most qualified for the position from a skills standpoint. It could still be more beneficial for your company to choose candidate X.
Staff who align with your company culture are more likely to inspire and motivate others, perform better and are more productive while they continue to build their core competencies within your organization. Having a competency management system in place allows you to choose the right candidates for your organization, regardless of skills gaps.
Building Competencies through Training and Learning Management
Your workforce’s collective knowledge and abilities or expertise in specific subject areas are what define your organization’s core competencies. Your core competencies can distinguish you within your industry and give your company a competitive advantage. With a comprehensive employee management system, you can test, access, and maximize your organization’s core competencies.
An effective competency management system includes employee performance management software and e-learning tools to support competency-based assessments and training, coaching and development, succession planning, and leadership development. One critical aspect of a competency management plan is a learning management system (LMS).
An LMS can provide training courses and assessments to bridge employee skills gaps and can create a pathway for success within your company – which helps build a positive company culture. With an LMS in place, you have the freedom to create your ideal workforce while cultivating an inspired company culture.