Companies would often neglect their internal culture in the past. However, things have significantly changed as human resource departments have evolved. It has become crucial for organizations to focus on developing a company culture that breeds success, satisfaction, and fulfillment, a far cry from how companies previously perceived company culture.
Many organizations have brought the importance of company culture to the forefront. Company culture initially became a thing in the early 1980s and has since come a long way. Global giants like Google, Zappos, Facebook, Nike, and others have prompted companies to rethink their approach to company culture.
What is Company Culture?
Company culture reflects an organization’s personality. It speaks volumes about how people within the organization interact and communicate with each other. It’s no secret that organizations function as a collective unit, meaning the employees need to be on the same wavelength to ensure business success. Instilling a company culture with clear-cut values, beliefs, and ideologies is the quickest path to getting your employees on the same page.
Unfortunately, creating a robust and shared company culture isn’t an easily achievable task. You can often segregate company culture into two classifications. These include stated culture and actual culture. Stated culture refers to the culture an organization is striving towards and trying to promote. The company lists the stated culture in its manifesto, internal documents, handbooks, etc.
On the flip side, there’s actual culture. It refers to how things work within an organization. Instilling a robust company culture often takes time and resources because people are averse to change. It’s generally a process of unlearning old values and learning new values. Then, you have to cement these into place.
The Importance of a Robust Company Culture
Culture has been a buzzword in the corporate circle for decades. However, there’s no denying its importance. Robust company culture can help elevate your organization’s success, ensuring it reaches its objectives. It can motivate your employees, leading to increased retention, lower turnover rates, greater productivity, and a happier working environment.
A Columbia University study shows that job turnover rates at companies with strong cultures are significantly lower than in organizations with poor company cultures. Their research found turnover rates were 13.9 percent at organizations with robust cultures. On the flip side, companies with a substandard company culture had a markedly higher turnover rate of 48.4 percent. It’s no secret that there’s a strong correlation between company culture and employee satisfaction. In turn, these lead to increased productivity and lower turnover rates.
Another university study found that satisfied workers were 12 percent more productive than the average worker. Meanwhile, unhappy workers were ten percent less productive than their average counterparts. The reason behind these figures is straightforward. Unhappy employees aren’t willing to do more than the bare minimum. They cling to their jobs for the paycheck, going through the motions without taking pride in their work performance. The consequences of having unsatisfied employees are significant for businesses. Statistics show unhappy employees cost American businesses approximately $300 billion annually.
Resilient company culture also impacts employee engagement. The New Century Financial Corporation reports that employees actively engaged in their jobs produce better results than those unengaged. Typically, companies with satisfied employees outperform competitors by 20 percent. They also earn 1.2 to 1.7 percent more and outpace industry benchmarks by approximately 2.1 percent.
Therefore, it pays dividends to have a strong company culture.
How an LMS Platform Can Improve Your Company’s Culture
As stated above, improving your company’s culture is no easy feat. However, organizations actively try to enhance their company culture. Many companies have started utilizing technologies like LMS platforms to work on their company culture. Here’s a look at how an LMS solution can improve your company’s culture:
Increase Employee Motivation
Learning management systems standardize training across the board. Whether you’re training someone today or two weeks later, you’ll provide them with the same training material. Doing so ensures no discrepancies between employees’ knowledge base and skills. It also helps fuel their motivation because you can provide them with tangible certifications that certify their progress and learning skills.
Create Corporate Unity
E-learning technologies like learning management systems can help remove educational barriers. Organizations can use these systems to eliminate skill gaps between employees. An LMS platform helps create corporate unity by ensuring employees operate on closer wavelengths. In addition, managers and supervisors can use the LMS platform to see how employees perform in training. They can use data-driven analytics to bring them on the same page on organizational matters.
Strengthen Workplace Confidence
Employees can often become disheartened if they’re not on the same page as their peers on organizational matters. Organizations have to prevent these issues. An effective LMS platform ensures employees are well-educated on relevant organizational policies and issues. Workers are more confident because they know they’re not suffering from knowledge gaps.
Make Upper Management Accessible
Organizations can also use their learning management system to make upper management more accessible to their employees. It’s well-known that cultures start at the top. The facade of a company culture quickly fades if employees realize the upper management doesn’t embody the same principles they preach.
Organizations can use their LMS to show that upper management is on the same page as the rest of the organization. They can achieve this by creating courses that introduce the upper management to employees and shows why the upper management loves working at the organization.
Build Courses to Show Examples of Your Ideal Company Culture
Organizations can also benefit from using an LMS platform to create courses that show examples of your ideal company culture. Consider creating courses that detail your business’s vision, mission, and long-term objectives. Highlight the work environment you want to create and touch upon your organization’s interpersonal aspects.
Build a Thriving Company Culture with Axis LMS
Atrixware has designed Axis LMS to suit the needs of all L&D professionals. Their learning management system for E-learning is widely regarded by many as the best learning management system on the market. Atrixware’s E-learning management system works well for compliance training, employee training, customer training, etc. Visit their website today to learn more about Axis LMS. Alternatively, consider contacting them today to get started.