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

Many organizations ignore employee engagement because it feels elusive and expensive. Rather than getting caught up in the fear and doing nothing, download our eBook on employee engagement, and get started.

 

About Catherine Mattice

Catherine Mattice, MA, SPHR, SHRM-SCP is President of consulting and training firm, Civility Partners, and has been successfully providing programs in workplace bullying and building positive workplaces since 2007. Her clients include Fortune 500’s, the military, several universities and hospitals, government agencies, small businesses and nonprofits. She has published in a variety of trade magazines and has appeared several times on NPR, FOX, NBC, and ABC as an expert, as well as in USA Today, Inc Magazine, Huffington Post, Entrepreneur Magazine, and more. Catherine is Past-President of the Association for Talent Development (ATD), San Diego Chapter and teaches at National University. In his book foreword, Ken Blanchard called her book, BACK OFF! Your Kick-Ass Guide to Ending Bullying at Work, “the most comprehensive and valuable handbook on the topic.” She recently released a second book entitled, SEEKING CIVILITY: How Leaders, Managers and HR Can Create a Workplace Free of Bullying.

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