3 Signs your Organisation May Need Cultural Change Intervention

The culture of an organisation underpins every part of it; the way employees think, the things they do and how they feel about the business and its customers. Poor culture can lead to a high staff turnover, absenteeism, poor client service and poor individual and organisation results.

But how do you know if the culture of your organisation needs a cultural change intervention? Here are three signs to watch out for:
 

#1 Your Staff Turnover Rate Has Increased

If the staff turnover rate has increased this quarter compared to the last, it can be a signal you have a problem. A Beyond Blue survey showed that almost half of all Australian workers have left a job because it was mentally unhealthy. The mental health impact of a workplace is so important that workers rate it second only to salary when choosing a job.

A Columbia University study showed that organisations with a strong culture can have a turnover rate of just 14% whereas a poor company culture can result rates as high as 48%.

Exit surveys should be used to find out specific reasons people have for leaving the business. If your organisation isn’t conducting them, start now. You will gain valuable insights into your business’ culture and identify problem areas that can be improved.

High staff turnover could be costing your organisation a fortune in recruitment, training and onboarding costs. You need to find the reasons why turnover has increased to reduce and make sure you retain your best people for longer.
 

#2 Poor Financial Results

If revenue is lower year on year without any major product or service or industry changes, look at your culture.

It’s no coincidence that organisations rated as some of the best to work for are also some of the most successful. Happy employees make for profitable organisations. So, if your bottom line isn’t looking as healthy as it could be, the business’ culture could be the culprit.     

Did you know that happy employees are 12% more productive than average workers. Unhappy workers are 10% less productive than the average. Happy workers are also less likely to be absent from work, but workers who are not happy with their employer often take all the sick days they are entitled to.

An organisation filled with unhappy employees can quickly find itself in the red if the culture and staff satisfaction levels can’t be improved.
 

#3 Unwillingness to Take Risk

For long-term success, an organisation needs to be willing to take calculated risks. Innovation takes risk and with few risk-takers on board, the organisation suffers. If an organisation holds individuals to account for making mistakes, staff will play it safe and stick to what’s familiar.

But if staff perceive support from management and the culture supports a level of failure, workers will take a risk. They will try new things and suggest alternative ways of working because of the limited personal risk.

A change in culture will allow staff to ‘stick their neck out’ and take a chance. The business will be rewarded with an innovative culture that encourages forward-thinking staff.

Recognising your organisation has a cultural challenge is often the biggest battle. These three areas are a good place to start in determining the culture‘s health.