How Culture Affects Productivity

How Your Culture Affects Productivity

Your company’s culture will influence every aspect of your employees’ workday – from how they spend their time to how they make decisions. An overly competitive culture may put unnecessary strain on your employees, causing them to be disengaged and unproductive. A positive and open culture, however, can increase your employees’ engagement and productivity.

Pitfalls of a Competitive Culture

You might assume that a competitive culture will lead to increased productivity because employees want to outperform their coworkers. When employees first begin working in a competitive environment, that’s true, but research shows that over time, employees become less productive.

Once the stress of working in a competitive environment has caught up to employees, they become disengaged and less productive. They no longer feel valued, supported, or respected by the company or their coworkers. Gallup has determined that disengaged employees have 37% higher absenteeism, 49% more workplace accidents, 60% more errors, and 16% less productivity. Disengaged employees cost you money.

An ultra-competitive culture also leads to a lack of loyalty in your employees. They’ll start looking for new jobs or turning down promotions.

Because employees are often unhappy in a competitive environment, they’ll only do the bare minimum, which can hinder growth.

Benefits of a Positive Culture

To keep your employees happier, healthier, and more productive, create a more positive culture within your company.

When your employees support your values, they’ll be unified and work harder to achieve your company’s goals. They’ll be able to make decisions based on the company’s values and know they’re actively contributing to the company’s success. They’ll feel more valued, supported, and respected, which leads to happier and more engaged employees.

Happy and engaged employees are 12% more productive.

Characteristics of a Positive Culture

A positive culture creates an environment where your employees care for their coworkers and are genuinely interested in their coworkers’ well-being. Your employees will want to provide support for each other during difficult times, both at work and outside of work.

A positive culture causes your employees to inspire each other, which causes everyone to do their best (which leads to higher productivity).

Tips for Fostering a Positive Culture

If you want to continue to grow a positive culture in your business, make sure you’re encouraging social connections among your employees. When employees feel connected to each other, they get sick less often, recover from surgery more quickly, suffer from depression less often, learn faster, and perform their jobs better.

Go out of your way to help your employees. This will inspire your coworkers to go out of their way for you and their coworkers. Your employees will feel valued and become more loyal and committed to your business.

Have an open-door policy and encourage your employees to talk to you about anything and everything. Your employees trust you with their problems and make them feel safe, which leads to improved performance and productivity.