Written by: Josef Stetter, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
The importance of a company's culture cannot be understated, even though it is a term thrown around about casually in the business world. It's the unseen factor that determines the form and direction of a company, impacting everything from worker happiness and output to client retention and revenue growth. In this piece, we'll go into the nuances of corporate culture, discussing what it is, what it consists of, the influence it has, and the steps businesses can take to foster a healthy and productive culture. There is a direct correlation between leadership and productivity. The problem is that many companies do not truly understand that one cannot work without the other; and it all affects and effects the ROI of a company. The morale and productivity of an organization's workers are greatly influenced by its corporate culture. It determines the baseline for how workers will feel about their jobs, their bosses, and their coworkers. When employees feel like they belong at their company, they are more likely to work together and think beyond the box to produce results that supersede expectations. A poor culture, on the other hand, can have a detrimental effect on an organization's morale, resulting in more employee turnover and lower output.
Along my journey of switching careers nine times and jobs over 18 times I landed a role as the Manager of HR for an experiential marketing firm where I led a team of 10 recruiters to try and find and hire sales professionals across Canada. The team was required to find salespeople who would work in different locations to sell credit cards of both retail stores and visa/Mastercard to shoppers in stores, gas stations, or at kiosks in the mall. Often, the locations were very remote and required working outside where the weather could be – 40. The “opportunity” offered very little pay as a base salary with commissions for sales where the sales professional had to stop people from shopping, filling up gas, on the street and start a conversation and convince them to buy, which is not as easy as it sounds.
To make matters worse, the sales managers would visit individuals on site and scream at them in front of everyone for not producing results, would send email after 1 am letting workers know that their location had been switched and if they do not get to work before 9 am they would be fired, constantly harass employees and demand more productivity even when someone worked in locations where maybe 2 people came by per hour so closing a sales was even harder. A leadership style of fear and micromanagement was the norm where people would call me daily and cry about how badly they were treated and how much mental, emotional abuse they experienced. People were so overwhelmed that they quit daily or got fired on moments notice.
Things got so bad that the turnover was over 400%-500% weekly. This meant that for every person who agreed to do this job, four to five would quit or be fired on a weekly basis. We went through three different databases to try and find people for a role that most would never consider an opportunity. I reported directly to the VP of Operations who with the sales managers would yell at me daily for not finding people fast enough. The sales manager team were considered G-ds, and the VP would refuse to address the abuse they gave my team and every sales representative, even when I had proof in writing with emails or texts. This was one of the most toxic cultures I have ever been part of. It was so stressful that I started suffering from panic and anxiety attack as nothing my team or I ever did was good enough or met the standards they expected; which could not be achieved given the insane levels of turnover and the speed in which people left the job. Understand, that we were recruiting and offering 150-300 candidates per week across Canada to the sales team which meant we were losing 600-1200 people per week given the high level of turnover.
The company's leadership style is also significant in shaping its culture. Leaders are crucial in shaping a society's culture because they serve as role models. Open dialogue, honesty, and trust are all fostered by strong leaders. They encourage their staff to think critically about their work and provide them room to improve professionally. Inspiring top performance from staff requires a strong leadership team that exemplifies the desired culture, something that was lacking tenfold in this experiential marketing firm. One of the most important aspects of any company's culture is communication. Trust, cooperation, and dedication all flourish in an office where communication is open and honest. It is important for upper management to keep staff up to date on corporate news, objectives, and expectations through frequent communication. It's a great way to show appreciation for your staff and get their input on how to improve the company. Clearly this is something that was not understood at all for a company to have 400-500% turnover weekly. Any suggestions for training, for changing the communication style, approach and nature fell on deaf ears.
One of my friends and mentors Dr. Obom Bowen in his book This is why Christians are broke chapter 7 wrote:
“Leadership determines the quality of the followers. Leadership also determines the mentality of the followers. Leadership determines the morality of the followers. Leadership also determines the attitude of the followers. Leadership determines the commitment of the followers; leadership determines the destiny of the followers. You can only be as good as your leader, and if your leader stops growing, you will stop growing. If your leader stops expanding, the organization stops expanding; you cannot live beyond your leader…if the blind lead, then the followers must also be blind, and if the blind lead the blind, they both fall into a ditch.”
Dr Obom Bowen’s words are wise beyond convention as they define all aspects of business and corporate culture. He has earned the right to be quoted and given the title of an authority as he has owned over 100 companies that have been immensely successful and consulted for companies such as Walmart, Chevron, Jafra cosmetics and more. In addition, he teaches entrepreneurs what it takes to be successful through his Underdog Millionaire brand. https://www.underdogmillionairesunite.com/ and https://underdog-millionaire.ueniweb.com/#about_us It is truly an honour and privilege to know him, constantly learn from him and implement strategies he speaks, teaches and actively demonstrates. Even before meeting him, I understood this concept of leadership and always tried to empower those that worked for me.
Even as a leader for the experiential marketing firm, I was yelled at daily but always protected my team and took responsibility. Sadly, the rest of the company did not understand the powerful words in Dr. Obom Bowen’s book This is Why Christians are broke, which probably contributed to the company’s downfall within 10 months of hiring me. They lost 3 major clients in one day and over night shut their doors to over 100 employees at head office and all the sales representatives across Canada. It is safe to say there was no vision just get sales, no one knew where they are going and very few especially salespeople wanted to follow which resulted in an insurmountable 400-500% turn over environment.
The term "corporate culture" is used to describe the norms and practises that exist within an organisation. Company culture is the set of norms and practises through which employees, management, and outsiders all engage with one another and the company. Despite its intangible nature, corporate culture has a significant effect on the financial results and public image of a company. A facet of corporate culture that can have a major impact on morale and motivation is employee recognition and awards programmes. Giving people praise and financial compensation for their efforts has been shown to increase staff morale and promote organisational ideals. A positive feedback loop can be formed in which great performers are further encouraged to maintain their excellent work. Integrity, innovation, and customer focus are all examples of core values that should be upheld by any successful business. They give one direction in life and a sense of meaning. The leadership style of top executives sets the tone for the entire organization. It can be authoritarian, collaborative, or transformational, among others. Sadly, many organizations fail to understand how their leadership’s behaviour can have a significant ripple effect on the culture of an organization.
Culture can be profoundly influenced by an organization's structure. It's possible that a hierarchical structure would foster a more authoritarian culture, whereas a flatter one would foster cooperation and equality. How workers interact with one another and with customers and other stakeholders is crucial to the success of any business. Mutual regard, compassion, and honest exchanges are highly prized. "Corporate Culture" is a powerful factor in determining an organization's future. Employee retention can be significantly improved by cultivating a company culture that is supportive of employees' personal beliefs and ideals. Employees are more likely to remain with a company if they feel they belong there and share the values of the business. Happier and more motivated workers result from a company with a positive culture. When workers feel content, they are more inclined to offer their all at work. A thriving workplace culture promotes open communication, mutual respect, and collaborative problem-solving among employees. Creativity and innovation flourish in an environment where people feel safe taking chances. When workers feel encouraged to share and implement ideas, they are more inclined to do so. So, a failure to understand how much corporate culture affects all aspect of the business is a recipe for disaster both in the short and long term of a company lifecycle.
Simply put, workers who are invested in the company's goals and values are more likely to go above and beyond. When people are happy and optimistic at work, they tend to be more productive. My own personal experiences as someone who has changed careers 9x and over 18 jobs can confirm that the environment is more powerful than your circumstances. The best talent is easier to recruit if your company has a great culture. Prospective workers care about more than simply salary, though; they also want to join a company that shares their values and can provide them with meaningful work. The company's principles, goal, and vision should be spelt out in detail. Even more important is for leadership to constantly demonstrate what they preach because when you lead by example others will do the same. Leaders should be role models for the values they aim to instill. They need to act in accordance with the company's principles and inspire others to do the same. Leadership determines the culture of an organisation. It is amazing how much of an impact on a company’s bottom line and overall ROI can occur when participation in decision-making processes can help employees feel like they have a voice and contribute to the success of the company. Invite people to share their ideas, address their issues, and help shape the company's ethos by doing so.
The term "corporate culture" is more than just a fad; it describes the very foundation of every business. There can be no doubt about the effect it has on morale, output, client satisfaction, and the bottom line. Successful businesses understand the need of developing, cultivating, and consistently enhancing their corporate culture to attract and keep the best employees, stimulate innovation, cultivate exceptional customer connections, and ultimately achieve sustainable success. Culture-focused companies will continue to thrive as the business landscape changes around them while those that continue to operate with a mindset of employees should just be thankful they have a job are sure to fail sooner or later.
Josef Stetter, Executive Contributor Brainz Magazine
For nearly 20 years, Josef Stetter has incorporated humour, energy, passion and full self-expression into his personal and professional life.
Award Winning & International Best-Selling Author of 11 books.
Award Winning Speaker and Guinness World Record Participant
Did not know what I want to do when I grow up so switched careers 9 X and jobs 18 times
Work in Recruitment. Clients have included: Deloitte & Touche, Aecon Construction, Tata Consulting Services, Canon, Aviva, Skechers Shoes and more!
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