91% consider corporate culture to be important or very important
79% place culture among the top value drivers of their company
54% would walk away from an
M&A target that is culturally misaligned, while another one-third would discount the target
by between 10%-30% of the purchase price
85% believe a poorly
implemented, ineffective culture increases the chance that an employee might act unethically
or even illegally
77% of executives indicate that culture plays a moderate
or important role in compliance decisions,
69% indicate the same about the importance
of culture to financial reporting quality
When the emotional culture suffers, so does the organization
Ignoring or suppressing how people feel is harmful. Successful leaders integrate both authentic emotional and cognitive cultures. When the stated values and the actual behaviors are in conflict, the emotional culture becomes negative. Emotions are data about the performance of an organization that is often ignored or deemed unimportant.
“Every organization has an emotional culture, even if it’s one of suppression.” —Sigal Barsade
Corporate culture is tracked online
Sites, such as Glassdoor and Comparably track and report on a company's culture. It can make a difference in attracting qualified employees.
Emotional intelligence training is important at every level
"Leadership is a process that unites leaders and followers in a complex emotional web. Reducing leadership to just the leaders — their special attributes and emotional needs — is half the story, possibly the poorer half. the other half is about the followers, people seeking comfort, stability, direction, challenge and meaning. It is, perhaps, curious that companies, trainers, management consultants and business schools, place enormous emphasis on leadership and its skills, but none on the issues (skills, needs, challenges) of being a follower. And most of us, in one way or another, are followers." — Stephen Fineman, author of Understanding Emotion at Work
Not everyone is comfortable talking about emotions
I am. It is my mission to destigmatize emotions.
Ineffective cultures typically have ineffective managers—which can be expensive. How expensive?
In a report from the Society for Human Resources Management, employees believe management lacks critical skills. A poll of found employees often hold managers, not HR leaders, responsible for creating the workplace culture. Among the respondents, 76% said their manager creates the culture and 58% said they left a job because of their managers.
At what cost?
According to Employee Benefit News, employers spend around 33% of a worker’s annual salary during the replacement process. Let’s put that into perspective:
$12,000 to replace an entry-level employee making $36,000 a year.
$20,000 to replace a manager making $60,000 a year.
$50,000 to replace an executive making $150,000 a year.
It’s expensive to replace even hourly employees, as Investopedia reports the turnover of an $8/hour employee can cost a business around $3,500. Companies spend an average of $1,886 and 47.6 hours a year on training for each employee. For companies to reach a break-even point on managers they hire, it takes an average of 6.2 months due to costs incurred.