Our modern world is complex — full of ideas, opportunities and obstacles. And organizational culture is the key to success.
No matter your business, disruption is waiting just around the corner, and it can come suddenly, or it can be planned.
Either way, employee response to disruptions such as mergers and acquisitions, organizational restructuring or strategic transformation will have a significant impact on the success of the transition.
Why? Your employees feel vulnerable and shaken without a sense of security. It’s like the ground is shifting from beneath them, and they don’t know where to turn.
The very heart of an organization is its people. And without proper care for employees on a holistic level, the organization as a whole may suffer.
If you’re considering an M&A, organizational restructuring or strategic transformation, now’s the time to address company culture.
Organizational Disengagement and Culture
According to Gallup and Dale Carnegie Training, 70% of employees are not engaged, and companies with engaged employees outperform those without by an enormous margin — 202%.
Establishing a successful corporate culture is key to creating greater value in both steady and uncertain times. And, without a sound strategy for building and branding culture, organizations will struggle to compete in today’s constantly evolving market.
When your culture is designed to encourage, motivate and align employees to work in tandem through a shared purpose, identity and intent, even if the organizational structure around them is threatened, they collectively weather the storm.
Not Tackling Culture Can Be Costly
Countless factors can overload an organization’s culture and influence employee motivation, leading to an increase in employee disengagement and the loss of valuable talent.
A recent Center for American Progress study detailed the costs associated with replacing employees:
- 16% of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be around $3,328.
- 20% of annual salary for mid-range positions (earning $30,000 to $50,000 a year). For example, the cost to replace an employee who makes $40k would be around $8,000.
- Up to 213% of annual salary for highly educated and experienced positions. For example, the cost to replace a $100k employee is $213,000.
Having employee wellbeing strategies in place to care for the heart of the company before, during and after disruption can ward off the unnecessary loss of key employees and help boost the morale, engagement and productivity of the existing or combined cultures.
What Companies Can Do
A thriving company culture doesn’t happen by accident. It’s built intentionally and purposefully by appreciating and rewarding your employees not only for who they are at work, but for who they are off the clock, too.
Today’s employees need proactive, continual and real-time feedback, not just a retrospective “good job” award. They want to be appreciated as whole people, not just employees. And by viewing engagement holistically — a 24/7, strategic approach, not just 9-to-5 — companies will see an uptick in success.
That’s why it’s important to establish a whole-employee wellbeing solution to align, engage and motivate your people. When you use dynamic tools designed to help you reap the benefits of a best-in-class employee engagement program and realize ROI for your organization, you’ll get the bottom-line results of a thriving organizational culture.
Download “Ensuring Successful Business Transformations Through Powerhouse Culture” to learn more about the transformative power of organizational culture.
About ITA Group
We create and manage events, incentives and recognition programs that align and motivate your people. Headquartered in West Des Moines, Iowa, ITA Group has operations in every region of the United States and award solutions for 75+ countries globally.