How Much is Your Culture Costing You?

by Jan 31, 2024

Creating a positive workplace culture isn’t just a nice-to-have; it’s a key player in the success of any business. It goes beyond token gestures like wellness days and promotions; it’s fundamentally about how you treat your people, the support you extend to your team, and the pervasive culture that permeates your workplace.

Now, let’s dive into the nitty-gritty. Have you ever pondered the true cost of your organization’s culture? Does it silently drain your resources, or does it actively contribute to the overall success of your company? 

 

The Price of Toxicity

The fallout from a toxic workplace is no small matter—it’s significant and widespread. Research paints a vivid picture, with a jaw-dropping 29% of employees opting to call in sick, all thanks to the toxicity lingering in their work environment.

Now, when stuck in a toxic and energy-sapping workplace, employees tend to disengage, get stressed out, and so much more. And, you guessed it, it’s not great news for the company.

Companies grappling with low employee engagement don’t just face a minor setback; they witness a whopping 33% decline in operating income. The effects of incivility aren’t light on the wallet either, ringing up a hefty $14,000 annual cost per affected employee. And here’s a nugget from another study: those extremely disengaged employees? They’re nearly 20% less productive compared to their engaged counterparts. Why? Less effort, more missed days.

Yikes! 

 

Turning Losses into Gains

The good news is that a strategic shift towards a positive workplace culture can actually turn the tide on these detrimental patterns. When your workplace is a hub of well-being, your people become engaged, productive, and yes, even more creative.

Here’s the good stuff: Highly engaged workplaces have a 41% lower absenteeism rate, and companies with a strong corporate culture report a remarkable fourfold increase in revenues. 

And if your employees feel heard, get ready for the magic—they become 4.6 times more likely to deliver their absolute best work. Oh, and let’s talk about the bottom line. A highly engaged organization? Brace yourself for an impressive 18% higher revenue per employee.

Also, a study from the University of Warwick supports the notion that happy employees aren’t just a feel-good concept—they’re 12% more productive. 

So, it’s not just a fluffy idea; it’s backed by numbers and real results.

 

The Culture Calculator

Now, going back to the first question of this article, have you ever wondered how much your culture is costing you? Luckily, we got you covered! Here’s our Culture Calculator—a free tool to measure the impact of your workplace culture on your organization’s success. 

 

calculator

 

Uncover the cost of your culture and discover actionable steps to improve it. Plus, as a bonus, access free resources along with your results to foster a healthier, more vibrant workplace.

If your results come up as positive, you’re on the right track! Make sure to sustain it to ensure your employees continue to thrive.

If the outcome is less than ideal, let us guide you in transforming setbacks into successes and unlocking your organization’s full potential. Discover how we can assist you and offer the solutions you need. Start making positive changes today!

 

Written by: Jennifer Areola

Incivility, bullying, and harassment occur because the culture allows them to. Before starting inclusivity initiatives, you’ve got to stop bad behavior. Take this assessment to determine if your workplace fosters a positive culture.

 

Catherine

About Catherine Mattice

Catherine Mattice, MA, SPHR, SHRM-SCP, is the founder/CEO of Civility Partners, an organizational development firm focused on helping organizations create respectful workplace cultures and specializing in turning around toxic cultures. Civility Partners’ clients range from Fortune 500s to small businesses across many industries. Catherine is a TEDx speaker and an HR thought leader who has appeared in such venues as USA Today, Bloomberg, CNN, NPR, and many other national news outlets as an expert. She’s an award-winning speaker, author, and blogger and has 60+ courses reaching global audiences on LinkedIn Learning. Her fourth book, Navigating Toxic Work Environments For Dummies (Wiley), is available in all major bookstores and where audiobooks are sold.

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