Company culture is defined as the shared set of beliefs, values, practices, and behaviors that define an organization. A strong and positive culture can enhance employee engagement, retention, and performance, while a weak or toxic culture can undermine them. Because of this, measuring the effectiveness of your company culture is essential to maintaining and improving it. Learn about key metrics and methods for assessing your company culture.
Employee Satisfaction Surveys
One of the most common and straightforward ways to measure your company culture is to ask your employees about their satisfaction with various aspects of their work environment, such as:
You can use a standardized survey tool, such as the Employee Net Promoter Score (eNPS), which asks employees how likely they are to recommend the company as a place to work, or you can create your own survey that is tailored to your company’s values and goals. The survey should be anonymous, confidential, and conducted regularly (ideally every quarter or every year) to track trends and changes.
Employee Turnover Rate
Another indicator of your company culture is the rate at which employees leave your organization voluntarily or involuntarily. If your employee turnover rate is high, it may signal that your employees are dissatisfied with their role, disengaged from your mission, or not aligned with your values. On the other hand, if your employee turnover rate is low, it may suggest that your employees are committed to your organization, motivated by your vision, and supported by your culture.
Of course, turnover rate alone cannot tell you the whole story, as there may be other factors, such as the industry, the job market, or the economic conditions, that affect it. Comparing your employee turnover rate to the benchmark of your industry or peer group, then analyzing the reasons behind the turnover through exit interviews or surveys can help you identify the root causes and potential solutions.
Productivity and Performance Metrics
Your company culture can also influence the productivity and performance of your employees, teams, and departments. By tracking key performance indicators (KPIs) and metrics, such as sales revenue, customer satisfaction, project completion time, or employee output, you can gauge the impact of your culture on the bottom line. For example, if your sales team consistently meets or exceeds its targets, it may indicate that your culture fosters a competitive, results-driven, and customer-focused mindset. If your customer support team receives high ratings and positive feedback, it may suggest that your culture values empathy, communication, and problem-solving skills. However, be careful not to overemphasize quantitative metrics over qualitative factors, such as creativity, innovation, and learning, which may require a different set of indicators and methods to measure.
Cultural Artifacts and Rituals
A more indirect but revealing way to measure your company culture is to observe and analyze the artifacts and rituals that embody and reinforce it. These can be visible or tangible elements that reflect your values and norms like:
- Office layout
- Dress code
- Logos and branding
- Employee perks and benefits
They can also be intangible or symbolic practices, such as:
- Meeting structures
- Feedback sessions
- Social media posts
- Employee benefits
These shape your identity and sense of community. By examining these artifacts and rituals, you can identify the gaps between your espoused culture (what you say you believe and do) and your enacted culture (what you actually demonstrate and reward) and adjust your actions accordingly.
Diversity and Inclusion Metrics
Not everyone that works together lives in the same area, shares similar backgrounds, has the same experiences, or celebrates identical traditions. Your company may have employees from various countries across the globe with different cultures and beliefs and with differing abilities. Your company culture should be evaluated based on its commitment to diversity, equity, and inclusion (DEI). DEI is not only a moral imperative but also a strategic advantage, as it brings diverse perspectives, history, and knowledge bases to your company and your workforce.
Let MSB Resources Help You Enhance Your Company Culture
If you are looking to build your workforce and create the best company culture for your business, reach out to the team here at MSB Resources to assist with recruitment services and workplace solutions.