You can’t pay your way to a good culture
As the old saying goes, money doesn’t buy happiness. As an employer, it doesn’t buy you a happy employee.
According to research from Leigh Branham, 89 percent of managers think that their employees leave for higher salaries when 80–90 percent of employees actually leave for reasons other than money. In addition, a Princeton University study suggested that US$75,000 is the happiness tipping point, meaning once employees are earning more than this figure, a salary increase doesn’t really contribute to their overall happiness and satisfaction in a workplace.
We know for a fact that employee turnover is an expensive business, so it behooves employers to focus on things that do contribute to employee happiness. A culture in which employees feel valued, and in turn, value the organization, makes financial sense. A study by Madison found that companies who had highly engaged staff through an excellent organizational culture, took fewer sick days (2.69 as opposed to 6.19), and would recommend their company more to others (67 percent against 3 percent for disengaged employees). It’s a clear line to draw, that those firms with higher employee engagement, are likely to see higher productivity, and thus, a healthier bottom line.
How do you know if you have a good culture?
Many organizations desire to achieve a good culture for the benefit of their employees and their company, and an engagement ‘pulse check’ is a typical exercise for most People and Culture teams.An engagement score can give you an indication of how your workplace is feeling – but it’s important to keep in mind that often the results of these can be skewed.
Employees feel pressure to report themselves as ‘engaged’ out of a sense of wanting to do the right thing, or perhaps having a differing definition of what that really means than the organization does.