Corporate culture is the manifestation of the relationship between leadership and their employees. It is sometimes referred to as organizational culture. It concerns how policies and communication from the top of a corporation can directly influence the level of employee engagement and satisfaction at multiple levels of an organization. When a company’s management does not show initiative to improve operations surrounding these types of complaints, it can create a culture of silence & resentment within the workforce. Healthy corporate culture creates a cycle of satisfaction and productivity that both benefits the bottom line and improves employee engagement for a balanced, stream of operations. When your corporate culture has declined significantly, an internal audit is necessary.
Signs You Need a Corporate Culture Audit
How do you know when your business or organization needs a corporate culture audit? The fact of the matter is that you don’t have to be an educated risk assessment investigator to identify the signs. Many employees can trace their workplace woes back to an internal process or another employee they do not like. Sometimes it’s difficult to discern whether your organization needs a corporate culture audit. Here are 8 of the most prevalent signs that leadership should watch out for when it comes to declining corporate culture.
8. High-Pressure Environment
There is a plethora of high-pressure jobs that can create tension in the workplace, like media conglomerates, financial firms, and law offices. When stress is part of the job, many employers go the extra mile to ensure that their employees can have good work-life balance, such as paid-time-off, vacations, and comprehensive benefits. In high-pressure jobs where these things are not available to employees, the workforce regularly experiences burnout and lack of engagement. When leadership is ignorant or inattentive to these issues within their corporation, it drives corporate culture down and contributes to the overall detriment of the workplace.
7. Employee Apathy = Poor Corporate Culture
Every employee has substandard days for a myriad of reasons, but when the workplace is constantly plagued by low energy and low morale, it spreads like a cancer throughout the organization. Employees who are engaged in the workplace increase productivity and customer experience. When apathy spreads throughout the workplace, it usually indicates that the root cause is pervasive, effects everyone, and needs to be neutralized as soon as possible.
If your organization is running into the same problems quarter to quarter, this is a major red flag. The nature of the problems are insignificant—whether it’s a problem with internal processes or multiple complaints of harassment, the fact that the problem continues to thrive within the workplace indicates that there is a fundamental issue with internal processes or personnel. While each issue may have resolved initially, the root of the problem was never identified or addressed. A healthy cycle of corporate culture cannot grow in such an environment.
5. Poor Investments in People
When it comes to hiring and promoting employees, sometimes leadership does not always make a sound investment in a single employee. It happens in every business, where a new hire or promoted employee does not meet expectations as predicted. This can bring internal operations to a screeching halt, whether executives elect to correct this poor investment via termination and turn-over, or to ignore the issue and allow that employee to continue stalling the corporation’s mission.
4. Questionable Ethics
“Questionable ethics” does not mean that it’s apparent that there is illegal or ethically unclear practices taking place within the workplace—otherwise it would be much higher on this list. “Questionable ethics” actually refers to individual employees’ understanding and ability to explain their company’s values. Regardless of intent, corporations are sometimes vague about their mission or values, using rosy words that denote a company with integrity and passion for bringing their products and consumers together. This can make it difficult for employees to intellectualize company goals and vision. When the workforce does not have a clear, common goal to achieve as a whole, employees can easily become detached and apathetic.
3. Lack of Accountability
When corporate culture is healthy, there is a mindful unity throughout the workforce, in which individual employees are content, engaged, and working towards the same goal. When the corporate culture is poor, individual employees at all levels refuse to take responsibility when something goes wrong. Lack of accountability for a mistake or oversight leads to a great deal of finger-pointing and shrugging in meetings and over email, and slows down the wheels of progress within a corporation or organization.
2. Bad Behavior in Leadership
Corporate culture audits can catch some of the most elusive culprits of tainting corporate culture: Executives and leadership. The old adage goes, “The fish stinks from the head,” meaning that most distasteful things within a company or organization can be traced back to leadership. Whether it is a supervising manager or an executive, bad behavior on behalf of leadership always trickles down into the rest of the workforce, because the supposition is, “If the boss is doing this, it must be okay.” This applies to all levels of bad behavior, from theft to malingering and everything in between.
1. Lack of Diversity
The number one indicator that your company or organization might need a corporate culture audit is a lack of diversity in the workforce. Any corporate culture that is homogenized with regards to race, gender identity, sexual orientation, or even age lacks the inherent ability to grow and change. Leadership in the workplace—management and executive positions—are dominated by cisgender, straight, white men, who are statistically projected to hire other individuals who are also in this category. Individuals in this category are hired, mentored, and promoted more than others, which feeds into a cycle of stagnation that will ultimately hurt the company or organization. The value of diversity comes with the support of trusted employees from many walks of life—employees who have had different life experiences and have a perspective that can reinvigorate an organization’s vision or mission—ensuring that the pursuits of the workplace are growing and changing along with the rest of the economy.