Recently I talked to a family friend who I hadn’t spoken to in a few months. Three months ago she was the top salesperson at her company, contributing millions of dollars to the firm’s bottom line and bringing in a hefty paycheck to show for it. She was also disillusioned with the corporate culture which she described as ‘toxic,’ meaning her boss was hard-driving, offering little to no praise and having a “what have you done for me today” approach to management. “I want to leave but nobody’s hiring,” she told me. Fast forward three months and nothing has changed—she’s still the top saleswoman, she still receives no recognition, and the culture is still toxic. Well, one thing has changed. She’s now sending out her resume because private employers are hiring again.
Last week the Bureau of Labor statistics reported that U.S employers had added 288,000 jobs in June, marking the strongest jobs market since before the recession. That’s great news for employees and really, really bad news for employers who have ignored their corporate culture or allowed it to erode over the past few years. Losing top performers won’t help, either. Not only will the bottom line suffer, customers and employees will begin to question their commitment to your company.
The evidence of culture erosion in the workplace is substantial. According to a Gallup report on The State of the American Workplace, a full 70 percent of employees (mostly white collar) are “not engaged” or “seriously disengaged” from their job. The results speak to culture—or the lack of one—because Gallup measures engagement based on participants who rate their boss and their workplace on the following types of statements:
“I know what’s expected of me.”
“In the last 7 days I have received recognition or praise for doing good work.”
“At work my opinions seem to count.”
“The mission or purpose of my company makes me feel important.”
“In the last six months someone at work has talked to me about my progress.”
“There is someone at work who encourages my development.”
“My supervisor seems to care about me as a person.”
It doesn’t take a genius to realize that good communication can result in higher levels of engagement on each of these elements. Recall what my friend, the saleswoman, said about praise and recognition? She never receives it, let alone in the “last 7 days.” Praise has the best ROI because the “investment” is free.
Consider the fourth question, “Does the company’s mission or purpose make you feel important?” Many employees find it difficult to articulate the company’s mission and purpose because their leaders rarely reinforce the company’s core mission and values in their day to day communication. Consider the question, “Does your supervisor care about you as a person?” Again, this requires communication. Supervisors, bosses, and leaders must make time to have conversations with employees that demonstrate a genuine commitment to seeing employees grow in both their professional and personal lives.
For example, I once interviewed the CEO of a hospital system in the Northeast that has landed on “best place to work” lists for many years. The CEO has created a culture where people feel empowered, engaged, and cared for. He writes handwritten notes and mails them to the homes of employees to celebrate life event such as births, marriages, and college graduations. How do you think those employees who received notes would respond to the Gallup question, “Does your supervisor care about you as a person?” A culture of engagement starts at the top.
In one of my earlier books, Fire Them Up, I interviewed more than fifty CEOs and managers considered to be “inspiring” leaders and who had motivated, engaged workplaces to show for it. I discovered that inspiring leaders share 7 traits that I outlined in this Forbes article. A winning culture starts with leaders who encourage the potential in others. For example, when I visited a company that is setting the gold standard for customer service and corporate culture—Zappos.com—I met a “goal coach.” The role of the goal coach was simply to help people achieve their career and, more importantly, personal goals such as learning to play a musical instrument. “What does playing guitar have to do with Zappos?” I asked. “It has everything to do with Zappos,” he responded.
Top performers want to be fairly compensated for the value they bring to the company’s bottom line and all of them will tell you so. But when I talk to those who are sending out their resumes, they’re always looking for more than a paycheck. They’re searching for passion and purpose, meaning, creativity, flexibility, and recognition.
It’s not easy to turn around a culture, but as I’ve written about in recent articles remarkable transformations can happen in a relatively short time if leaders are committed to creating a culture of meaning and happiness. Building a winning culture begins with small steps. One simple strategy is to call individual meetings with your top performers and ask what they want in a culture. The conversation might go like this:
Employee: Hi, boss. Do you want to talk about last quarter’s numbers?
You: No, I want to talk about something more important. Your happiness.
Employee: Uh, okay. What do you mean?
You: What would give your life more purpose, more meaning, that we are not providing? Are you enthusiastic and passionate about the company and it’s culture? If not, why not?
Once your employee picks their jaw up off the floor you’re likely to hear things that will make your corporate culture far more attractive to top performers. A winning culture starts with a simple step—ask for feedback.