A Quick Guide to Measure Company Culture

Culture refers to the consistent organizational behavior of employees and leaders. Company culture is abstract yet very effective on organizational performance. As data gives you insight into what to improve, measuring company culture becomes more important. Building and managing organizational culture can help the company achieve its business goals.

Culture Metrics

Metrics are defined to measure quantitative assessment for comparing, and tracking performance. Metrics can also be used in a variety of scenarios. Metrics are heavily relied on in the data collected in companies by both internal managers and external stakeholders.

As it is difficult to determine metrics that would directly help you measure your company culture, However there are several indirect ways to get same:

  1. Number of employee referrals gives a clear indication to what extent employees are promoting in organization and referring others to join. Tracking both formally and informally, it is a good indicator of your corporate culture. Some organizations also track employee net promoter scores; this guides to measures how likely employees are to recommend the organization as a place to work.
  2. Productivity metrics measure projected to actually completed ratios for your employees’ goals and organizational objectives for success. A great company culture leads to highly productive employees.
  3. Attrition rate is a clear indication of toxic culture. The HR must address the reason for what cause higher employee attrition rate and find a solution quick as possible.
  4. Attrition rate is a clear indication of toxic culture. The HR must address the reason for what cause higher employee attrition rate and find a solution quick as possible

Ways to measuring company's culture

1. Tracking Behaviors

While culture itself is challenging with new workforce it's challenging to measure and track. Using your desired value-based behaviors HR's Professional can create culture metrics for your organization. For example, if innovation is one of your values and idea sharing is an associated behavior, you can ask managers and team leaders to report on the prevalence of shared innovative ideas. Similarly, if accountability is a value, an associated behavior may be meeting deadlines. Again, ask your managers to let you know if deadlines are generally met. Using tools make it easy to reinforce and measure core values and behaviors and automating the process and housing it all in one place.

2. Anecdotes

Anecdotes means short stories or short intervals, having Anecdotes feedback can come in handy as this develops an employment engagement culture. Anecdotes feedback seems easy with organizations having low head count but as the company size increases Anecdotes feedback becomes more challenging a simple way to overcome this is by dividing the employees into smaller groups and appointing team leader as reviewer.

3. Program and Event KPIs

Tracking HR KPIs is key to understanding important cultural shifts from positive to negative or vice versa. The good thing is that most of this data is likely readily available in your HRMS itself. This includes turnover rate, rates of absenteeism, performance rate, alteration rate which helps to define the KPIs for individuals as well as a group. Another important metric is the employee Net Promoter Score eNPS, which you can collect through several surveys both internally as well as externally i.e from customer end. Tracking these quantitative metrics against your culture initiatives can help you understand how you’re performing and scope to improve. Tracking business KPIs in conjunction with efforts to improve culture can provide valuable insight that HR needs to work with data like, Customer retention rate, Customer satisfaction, Revenues, Sales. While this data doesn't necessarily fall into one of the three categories in our framework, significant changes in business KPIs can indicate culture changes, especially when layered with any initiatives you're working on to improve organizational culture.

4. Employee surveys

When it comes to collecting honest feedback, Surveys are the best tools that you can rely on. As an HR you have probably already run periodic employee engagement as well as for organization health. The most effective way to track information about organizational culture and employees behavior is to layer survey data, with behavior and relationship data collectively. There are dozens of great survey tools and resources in the market from Microsoft Forms and Survey Monkey to high-end solutions like Qualtrics. but what if you can conduct all your surveys using your HRMS application itself. With Humanware HRMS you can not only conduct surveys but get real time data as the best business intelligence is in place.

5. Real time Insights

With Real time data Analytics, you can automatically measure key components of your culture like the value-based behaviors, the collaboration between people and departments, and contributions to morale through the recognition and appreciation shared on the HRMS platform. Real time data Analytics is built into the HRMS, employee engagement and recognition platform, a hub for peer-to-peer recognition, highlighting employee contributions. With Humanware HRMS, each recognition is tied back to organizational values. The great thing about a HRMS is that new data is gathered regularly, allowing you to correlate how your team appreciates each other and interacts with one another, allowing to connect the information to HR and Business KPIs.

Benefits of Developing Culture

Better business performance

Company culture acts as a catalyst for higher quality performance overall. It chains for better teamwork, more productivity, and a higher sense of satisfaction. When an employee feels supported within their organization, their sense of loyalty to that organization increases and they’re motivated to reach higher and work harder.

Better Reputation

Having an excellent culture is going to have a positive effect on business from the inside out, this doesn’t apply solely to employees. When consumers know that a business treats its workers well, they tend to have a positive approach to business words. Having a stellar reputation is extremely valuable, and employees' emotions are the perfect way to build that reputation.

Best Employee Retention

High turnover is typically because of negative or ineffective company culture where employees feel unrecognized. High turnover adds up to less productivity, engagement, and success and is very expensive. If employees feel supported in organization,overall performance will improve along with retention rate.

Best Employee Fit

Just like an organization wants to hire the best talent, candidates are also looking for the best organization ,companies whose culture aligns with their values. For example, some like the egalitarian nature of one-man businesses, while others prefer a traditional hierarchy. Some people want to see conventional-style day-to-day operations while others favor an environment that encourages innovation. Having the best culture in place will allow the right talent to find opportunity and make your business even better.