How company culture affects employee productivity


What exactly is company culture? defines it as a blend of values, beliefs, taboos, symbols and myths all companies develop over time.

So, company culture is the personality of an organization from the employeee perspective. It includes company’s mission, expectation, and work atmosphere.

Lets consider Google. It has 47,756 employees, yet people describe it as having a culture of small company where no one hesitate to “spike a vollyball across the net at a corporate officer”.

Job turnaround of High cultured company is far too low at 13.9%

Columbia University shows that liklihod of job turnaround at an organization with high company culture is a mere 13.9% whereas it is 48.4% in low company.

The reason is simple; unhappy employees dont tend to do more than the minumum, great workers who dont feel appriciated quit. Also poor managers negatively effect workers and productivity.

In a Harward Business review blog post “Tranform your employee into Passion Advocates” Rob Markey compares Customers to employees. He states loyal, passionate employees bring a company as much benefit as loyal, passionate customer”. They stay longer, work harder and find ways to go the extra mile.

Unhappy Workers cost America over $300 billion each year

Department of Economics at the Unoversity of Warwick found that happy workers are 12 percent more productive than the average worker, and unhappy workers are 10% less productive. It cost American business $300 billion each year. So it literally pays you to make your employees are happy.

Tony Stevenson, CTO at Purple Olive Labs(Dallas based app development company) states that their company culture helped them increase their revenue 1.7% times their peers. It helped them lift the firm 2.1% above the industry benchmark.

“To make customers happy, we have to make sure our employees are happy first”

How BIG cos find the perfect fit

Zappos CEO conducts two set of interviews- one with the hiring manager and their team and other with the HR team. They offer $2000 to quit their job because they want only those who absolutely love the job to stay.

Buffer has 45 days of trial period to see if the company is a good fit for the employee.

The walt disney requires specific previous work experience for landing a drea job with them; childhood dreams.

Southwest Airlines zeros in on behavious, not just the resume- when they fly candidate in for an interview. Gate and flight crew report back on their attitude and how they behaved.

How to build a company culture

Hire and keep only the best

Start to build the culture from the start, with the employee you hire.

It’s easy to do this at this stage rather than to resurrect it at a later stage.

Follow aggrasion in the hiring itself. Focus on the most critical factors that matters to your company.

This is how you should do it.

Multiple interviews: Dont rush to the process, conduct atlest 3 rounds if you want to find the best fit your company. The idel time should be around 4 weeks.

Keep a list of qualities you expect from employee: This is how Chipotle maintains a consistent workforce. It eleminates unwanted questions, saving time for the process.

Personality should be valued at per with skills:

As stated above when Southwest Airlines hires new employees, they ensure that the attitude of the condidate mathches with the company ethics.

Offer Money as Zappos does:

Zappos pffer $2000 to for the new joinee to quit. It ensures that if money is enough of a temptation for the hire to give up, they are not good for Zappos.

Do you have a mission?

Profit and revenue will be motivator for few but not for all. Its the mission that will bind all together.

Developing a core language:

Its about writing down the core principle and values of company to convey to all employees in the same language. This will prevent the mission from shifting to something else.

Corporate social Responsibilty

82% youth consider if company support any couse before joining. Thats a huge number which you cant miss.

They will be willing to take a pay off to work for such a company, so cost burden wont be much as you expect.

How flexible are you?

Rigid guidlines will drain your employees.

63% of the company employees are not engaged and 24% are disengaged. This is there the productivity hurts. These diengaged employees can sometimess pull other with them.

How to stop happening this?

Unlimited Vacation

Some companies do offer limited vacation hours, but this doesnt work. Employees need their own time to take a break and to run their own cycle. This is to increase their engagement rates, which is important given that disengagement leads to 11% decrease in earnings.

Make them select their own project

Google provide their employees 20% of the time to work on the project of their choice. This lead to the creation of Gmail and AdSense.

If you want to make an employee work for you at their best, learn to make them happy.

Comment if you tried something innovative to improve your work culture.