We all love a good ROI so let’s talk about metrics that you can use to help demonstrate the return on investment into arguably one of the most important parts of your business – your company culture. How do we quantify culture?
Culture is undeniably important and post-COVID there has been a massive shift to awareness of and investment in creating welcoming and encouraging environments for employees to excel in. As a business leader, it’s not something you can leave up to chance. We have to spend time here strategizing and thinking about culture.
But how do we know if we are doing well in this arena? We can institute certain culture-focused initiatives, we can intentionally lay the groundwork for the culture we want to create and even take the steps to support fostering that environment but it’s hard to know if the effort is paying off.
Here are a few metrics to focus on as you measure the ROI of your culture:
Financial Metrics
Operational Metrics
- Employee Engagement: High engagement correlates with increased productivity and efficiency.
- Time-to-Market: A culture of collaboration and agility can accelerate product development.
- Quality Metrics: A strong quality culture can reduce defects and rework, leading to cost savings.
Human Capital Metrics
- Employee Satisfaction: High satisfaction levels indicate a positive work environment. Don’t forget to survey and ask employees often about their satisfaction with their work.
- Talent Acquisition Costs: Great culture links to a strong brand that is attractive in recruitment. This can reduce recruitment costs (and give you an increase in applications).
- Employee Development: A culture of learning and growth can lead to a more skilled workforce. This gives them the opportunity to do more of what they love.
- Employee Tenure: The average tenure of your employees says a lot about your culture and employee satisfaction. At Syrup, we are proud to say that our average tenure is just over 8 years.
While quantitative metrics are essential, qualitative data, such as employee surveys and focus groups, can provide valuable insights into the impact of culture. And remember, less is always more. Don’t feel the need to track against ALL of these metrics above. Identify the ones that paint the truest picture of your culture and lean into those.
A recent podcast I was listening to referred to Peter Drucker, legendary management consultant, and his famous quote “Culture eats strategy for breakfast.” I just love that quote, because it’s so true. Great culture is undeniably important. And looking at the numbers above we can see just how much of an impact it makes on our business.
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