This blog continues the series on attracting, motivating and retaining a high performance team. Here, I will home in on the importance of developing a healthy workplace culture as a component for growing your business.

In the words of Richard Branson "Clients do not come first. If you take care of your employees, they will take care of the clients.".

To provide some context: we need to recognise that:

• business success is more than having financial strategies, marketing expertise and great products and services, etc.

• we face a highly competitive marketplace for skilled labour.

• A healthy culture is not just a "nice-to-have" – consider it as a strategic imperative.

We may have differing opinions on what a 'healthy' culture looks like. My take is that it's an environment where diversity is celebrated; flexibility is tailored for both individual employee and collective needs; and where work and personal life needs are harmoniously accommodated.

If you fail to recognise the importance of these elements, then you risk losing key members of your team, loss of traction, extra costs and lost opportunities. So read on!

TIPS: at the start:

§  Occasionally, run an internal Survey to gather direct input from your staff about the workplace culture, concerns and ideas for improvement.

§  Lead by Example: For example, if you value work-life balance, then stamp out late-night emails!

§  Clear Communications: provide clarity and seek feedback regarding culture initiatives.

§  Celebrate Diversity: Hold events and communications to highlight and celebrate the different backgrounds and perspectives in your company.

§  Review Regularly and be prepared to adapt: recognizing that culture is dynamic.

Now let’s dig deeper:

Foundation Number 1 - Diversity and Inclusion

A survey of Australian and New Zealand workplaces by Hays found that 56% of respondents felt their chance of being accepted for a job was lowered because of their sexual orientation, ethnicity, age, gender, or disability, and 63% felt the same about their chances for career progression.(https://mentalhealth.org.nz/workplaces/statistics-on-mental-health-and-wellbeing-in-new-zealand-workplaces#references).

So, ensure your recruitment strategy reaches diverse talents and your workplace policies are free of discrimination.

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§  adopt ‘blind recruitment practices’ to reduce possible unconscious bias.

 §  delete a candidate’s name and other identifying factors from their application - age, address or location, school or university names, etc.

Let's look at a few stats:

• Deloitte report that inclusive companies are 2 times more likely to meet or exceed financial targets, 3 times more likely to be high-performing, 6 times more likely to be innovative and agile, and 8 times more likely to achieve better business outcomes (https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2017/diversity-and-inclusion-at-the-workplace.html).

• A McKinsey report states "Diversity Wins”- companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile^https://www.mckinsey.com/business-functions/organization/our-insights/diversity-wins-how-inclusion-matters

So, create a workspace where all feel valued and included. Pay more than lip-service. Be proactive - take steps to understand, respect, and value your individual team members and what it means for the collective.

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§  Hold regular training sessions on diversity, inclusion and equity.

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§  as a leader, have a good and frank look in the mirror - do you visibly champion these 'must have's'; do you encourage open and constructive discussion; do you really understand and show empathy?

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§  make sure there is regular opportunity for everyone's voice to be heard and valued. Set up appropriate channels and forums.

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 §  carefully consider whether your staff are comfortable in ‘opening up’ when you engage, ‘without fear’- and what steps you may need to take to breakdown any barriers, including building much needed trust.

Foundation Number 2 -Flexibility

Flexibility is no longer a perk - it is an expectation for those looking for a job. Gone are the days of simply having to provide a pay-cheque!

With a shortage of skills in the economy, and facing high competition to attract quality talent, you must seriously consider the extent of flexibility afforded to your team.

• Statistics New Zealand has reported that 50% of the workforce worked part or full-time from home during the COVID-19 lockdowns, pointing to both an acceptance of, and feasibility of remote/hybrid type working arrangements.

• the Employers and Manufacturers Association (EMA)](https://www.ema.co.nz/) has reported that 78% of employees would accept a job that provides for flexible working over one that didn't.

• FlexJobs has reported that 80% of workers would be more loyal to their employers if they had flexible work options.

TIPS

§  Review, refine, introduce remote work policies that facilitate diverse needs with choices for flexible schedules and/or compressed workweeks. And, ever considered a 4 day week or 78 hour fortnight!?

 §  Train your managers to effectively run remote teams.

 §  Consider job sharing and to what extent current job roles and schedules need to be changed to allow for flexible hours, telecommuting, part-time hours, etc.

Foundation Number 3 -“Work-Life balance” and “Work-Life Integration”

OK, work is a large part of our lives - but it is not the be all and end all - we are not all workaholics!

A study by Stats NZ https://www.stats.govt.nz/ shows that companies promoting work-life balance have seen a 25% lower staff turnover.

We must recognize that the working landscape is ever changing, and there is an imperative need to keep our finger on the pulse of key drivers and adapt accordingly.

Furthermore,  there is increasing discussion about how the need for “work-life balance” is evolving into "work-life integration" - a space where work and personal life should coexist harmoniously. It is noted that this is particularly important for our millennials, an increasing percentage of the workforce for a lot of us.

Indeed a study by EY has shown that millennials are more than twice as likely to quit if they perceive a lack of flexibility in their roles!

TIPS Consider:

§  Offering support for mental and physical wellbeing

§  Encouraging/insisting on regular breaks and taking time off for leave

§  Recognizing the importance of personal milestones and family time.

§  Researching and introducing wellness programs. There are many out there.

§  Applying strict 'log-off' times - including no go times for emails!.

§  Supporting parental leave and providing daycare services.

§  Creating a dedicated quiet space in the office for relaxation and stress relief.

§  Introducing policies that recognize and respect personal responsibilities and interests outside work.

Embracing such initiatives can reduce burnout. The Mental Health Foundation has reported that 33% of survey respondents feel unhappy due to a lack of work-life balance.

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Research how other companies are approaching the wellbeing of their team and wider culture. Companies like Xero and Trade Me in New Zealand have set benchmarks. Globally, have a gander at a posterchild - Google with their free meals, nap pods, and onsite wellness programs.

Check them out!

Foundation Number 4 - a Learning Environment

A learning environment is another important ingredient for fostering a healthy culture and business growth.

LinkedIn's 2019 Workforce Learning Report showed that 94% of employees would stay longer with a company if it invested in their learning and development. And I doubt if the figure has changed that much!

TIPS

§  provide for professional development - for example with workshops, courses, and online learning platforms to improve both the skills of your team and job satisfaction - a win/win, double whammy!

 §  do not accept excuses like “I am too busy for training”.

Foundation Number 5 - Clear Communication Channels

Effective communication is the bloodline for any healthy and growing company; and it is imperative that all your team feel heard, valued and understood.

TIPS:

• Regularly engage at an individual and group level for feedback and ideas.

• Encourage your team to speak-up, with 'no fear'.

• Review your communication tools - software apps and the like. Consult your team, particularly the younger ones as there are a vast number of great tools out there that they will be enthused with. Gone are the days of having to hold so many physical meetings!

In Closing

Cultivating a healthy culture is a strategic move. Ignore at your own peril.

A Columbia University study has shown that the chances of employees leaving in a company with "rich company culture "is a mere 13.9%, compared to 48.4% at companies with a "poor culture".

So, in conclusion, I suggest you regard the culture as the ecosystem for your company to successfully grow. Create a space that embraces change, values the individual, and unities all for a common purpose. Also consider that investing in your culture is as important as any other facet of your business model and strategies – but you must be proactive.

Taken seriously, the rewards can be great, albeit often intangible A loyal, motivated, high-performing team – the 'best team in town' - are well worth the investment.

Think on and take action.

END.

Neil Sayer