Scroll Top

The Importance of Culture in Small Teams

There’s been a lot of conversation about workplace culture, but what exactly is it? Why are workplace culture and employee engagement so important? How does one create and nurture a good, productive working environment? Let’s find out…

What is Workplace Culture?

Workplace culture is the overall environment in which you work. It includes the physical space, but also atmospheric things such as the attitudes and behaviors of your colleagues and supervisors. Workplace culture should align with the goals of your organization and serve as the guidelines your employees follow. Good workplace culture keeps you and your employees engaged and growing.

Why is Employee Engagement Important?

1. Engaged employees are happier employees

The more engaged an employee is, the higher their general job satisfaction. While engagement and happiness are not synonymous, they are related in some ways. Unengaged employees tend to report miserable working conditions, unlike more engaged employees. Don’t forget though– workplace culture isn’t all about FUN!

2. Engaged employees are more likely to stay with their company

According to The New York Times, employees who derive meaning from their work are three times more likely to stay with their organizations. Engagement includes how connected an individual feels to their job. If that connection isn’t strong, they’re less likely to feel satisfied in their position. 

3. Happiness can increase performance

The University of Warwick conducted a survey to determine if happiness impacts productivity in the workplace. It was found that happy, satisfied employees are about 12% more productive than unengaged employees. Highly engaged employees can lead to a 202% increase in performance.

4. Job seekers avoid companies with a bad reputation

86% of job seekers stated they avoid companies with a bad reputation. If your employees aren’t feeling engaged, they are less likely to rate your business highly. This could lead to a snowball effect of losing valuable employees and being unable to replace them.

So, Why is Workplace Culture Important?

Among surveyed individuals, company culture is an important factor for 46% of job seekers! Millennials are finding work culture to be more important than previous generations. 94% of surveyed entrepreneurs deemed company culture vital to overall success. In fact, better workplace culture can even lead to a revenue increase of up to 33%.

People value workplace culture now more than ever! This is especially true among small teams. When you work in a small group, it’s much more apparent if someone is unhappy or unengaged. Workplaces with a higher engagement rate saw 41% lower absenteeism. When someone in a small team calls out, it puts more strain on the remaining team members. This could cause a cycle of disengagement and low morale. So, how does someone prevent this?

4 Tips to Cultivate the Perfect Workplace Culture

1. Give positive feedback and recognition

People like being recognized for their hard work! Engaged employees report higher rates of consistent feedback than their unengaged counterparts. This could be as simple as a quick check-in or dedicated one-on-one meetings. Consistency is key!

2. Promote healthy work habits

If your work habits aren’t healthy, the company culture won’t be either! 94% of entrepreneurs and 88% of job seekers say that healthy work culture is integral to success. In fact, company-wide healthy work habits can lead to an increase in revenue, of up to 400%.

3. Communicate transparently

Transparency can encourage employees to stay engaged with their company. When the company’s expectations are clearly communicated, employees are more likely to meet those expectations. If an individual doesn’t know what’s expected of them, how are they supposed to work properly?

4. Listen

Above all, listen. People like to feel heard. Even if you do everything possible to make yourself approachable, it can be difficult for employees to feel comfortable talking to management, especially under negative circumstances. Creating official channels for employees to give their own feedback, like via an engagement survey, is a great way to open communication and cultivate an engaging environment!

If you found this blog interesting, check out this post on “12 Ways to Gauge if  Your Workplace Culture is Healthy“, curated with input from experts across multiple industries.

Related Posts