Employee Engagement: The Importance of Organisational Identity

According to a recent study by Gallup, only 27% of employees strongly agree that they ‘believe in’ their organisation’s culture.

It is a proven and well known fact that companies with great company identities have better employee engagement, leading to higher levels of productivity and better performance.

Companies which do not achieve their desired identity, not only fail in allowing the organisation to achieve its potential, but can also create a negative impact on employee job satisfaction and productivity.

Leaders should be aware of their desired culture, brand, purpose and how these are received, as these ideals often differ from what people within the organisation actually experience. Identifying the differences between the culture envisioned by leaders and the culture experienced by employees is often not considered a business critical priority.

Corporate Culture and Performance, a publication by John P Kotter, reinforces the notion that corporate culture and identity are integral to the success of a business. It highlights what successes come from a positive culture. The report shows that businesses which implemented cultures that actively sought to meet needs of stockholders, employees and customers massively outperformed those companies which did not have those values. The findings below outline the results of his study.

Change in revenue over 11 years. Change in number of employees over 11 years. Change in stock prices over 11 years. Change in net income over 11 years.
Company actively improving and communicating their culture. Increase of 682% Increase of 282% Increase of 901% Increase of 756%
Company not improving and communicating their culture. Increase of 166% Increase of 36% Increase of 74% Increase of 1%

With obvious and readily available evidence which proves that culture effects performance, it’s surprising that so many companies don’t focus on implementing and improving their own.

It may even be that some leaders are unaware of their own culture, which is why it’s important for them to immerse themselves within the company and initiate a identity change.

 

How to Trigger a Culture Change

There are 6 main components of a great corporate identity. Ask yourself the below questions;

 

Vision

Do we have a mission statement? Does the mission statement clearly outline what our company wants to achieve? How are we communicating this to our employees? How many of our people could recite our mission statement back to us? How can we improve this?

 

Values

What are our core values? Do they reinforce our mission statement? Do our existing values reflect the behaviours that are seen currently in our business? How could we improve the communication of our values?

 

Practise

How do we currently put our values and vision into practise? Do we eat, breathe and live our values? Are there any areas where we fail to embrace these values? Where can we improve?

 

People

Why would our people embrace these values? Why would they want to work towards our mission statement? What do our employees think about our current practises, values and visions? How do we communicate and encourage them to embrace our desired culture? Which employees stand out as culture champions? How can they help spread our desired culture?

 

Place

How is our current identity spread amongst our employees? How does our current environment office enable the positive spread of culture? How can we change this?

 

Narrative

What stories or heritage do we have to tell our about employees about? How will these help our employees relate to the company and embrace the values? How can we deliver these narratives to our employees?

 

Reviewing how you approach these components and how they are communicated to your employees is the first step to triggering your identity change. Only 27% of employees strongly agree that they ‘believe in’ their organisation’s values, but it’s time to raise the bar in your company and trigger that culture change.

 

Find out how the Employee Engage App can help you improve your company culture.

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