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Factors Impacting Company Culture

HR has a significant impact on company culture and is instrumental in ensuring that the culture of an organization remains relevant. Corporate culture does not stay fixed in one place. It continues to evolve with changing industry forces, workplace norms, demographics, as well as other factors. Your organization’s culture can be measured and the information can then be used as the baseline for making future improvements. The Society for Human Resource Management (SHRM) reports that feedback tools and pulse managers can be deployed to quickly understand a group’s cultural issues on a weekly basis.

Corporate culture influences many aspects including brand reputation, engagement, morale, and productivity. It is very important for Hr leaders how the bottom line is impacted by culture and what steps can be taken by businesses periodically to evaluate the performance of their cultures.

Organisational Culture Dynamics

Organizational culture can be seen reflected over numerous levels of a business. It is found in the work styles defining your team’s daily approach to projects, and the ways that your management interacts with staff members. Enterprise cultures can be team-driven, collaborative, conservative, hyperfocused, or encompass many other characteristics. According to SHRM, companies that have positive cultures also have better profits, productivity, and performance compared to those that do not.

The following should be considered by HR leaders:

When you are trying to determine whether your organization’s culture is continuing to evolve, it can be evaluated in several ways and if necessary, change the trajectory.

  • Many factors mould cultural changes
  • HR leaders directly impact a company’s culture

Organizational culture can be measured and this can be used as a barometer for workforce effectiveness and engagement.

Changing Demographics

When it comes to an organization’s culture, different generations have their own expectations and desires. Currently, in many businesses, there are four generations that are working side by side. As baby boomers are reaching retirement, a more prominent role is being taken by Millenials. This means that HR leaders must evaluate how the needs and expectations of each generation shape the organization’s changing culture – and whether or not current values are resonating. HR leaders need to determine whether or not they have strong current workplace culture, or if new programs like HR talent increased mentorship need to be incorporated.

Industry Trends

The culture of an organization does not live inside a vacuum. Leadership sets the tone. However, various external agents affect it. Skilled labor shortages, a tight industry job market, political factors, changing workplace norms, and other factors can cause your culture to change and make it even more important. Look closely at industry trends that may influence the culture of your organization. For example, if your business needs to allow employees to work anywhere to attract talent within a competitive industry, it may be time for your company to adopt flexible telecommuting and scheduling policies.

New Technology

Another factor that impacts an organization’s culture is technology. As businesses become increasingly global, teams need to be able to work across different time zones, geographies, and cultures. Within the conversation, collaborative tools continue to play a larger role. When it comes to using technology to provide your culture with support, if you are lagging behind, it might be time for you to determine how you can better align through the use of technology.

Employee Engagement

Are your employees truly engaged? If you understand employee engagement, it can help you determine the effectiveness of your culture. Employees who are engaged are a lot more likely to be more productive and feel connected to your company’s mission. If low engagement is revealed by strategic assessments, it is time to take a look at which of your cultural areas can be changed to your team is more effectively engaged – from making improvements to your management style to clarifying your purpose.