Almost two-thirds (61%) of employer respondents see an improvement in employee performance following investment in workplace culture, according to research by EY.
Its survey of 100 FTSE 350 board members also found that 92% of respondents believe that investing in workplace culture has a positive impact on an organisation’s financial performance.
The research also found:
- 86% of respondents view culture as fundamental or very important to their organisation’s overall performance.
- More than half (55%) of respondents report that investing in workplace culture has increased operating profits by 10% or more.
- Just 12% of respondents include a detailed overview of their culture and how it is managed in their public filings or annual reports.
- Less than a fifth (19%) of respondents believe that the board has primary accountability for workplace culture.
- 51% think that the board should take more responsibility in shaping and measuring culture.
- 68% regularly and actively try to promote and control organisational culture at board level.
- 47% of respondents feel that there is either little or partial board-level consensus on what an organisation’s culture should be.
Kevin Hills (pictured), UK head of integrity and compliance at EY, said: “The lessons are clear: culture generates value for organisations willing to invest in it, encompassing both improved performance and reduced risk. You may not always get what you expect, but that’s not necessarily a bad thing.
“There will always be multiple sub-cultures within any one organisation, each of which influences how employees make decisions. However, it is the board’s responsibility to set the tone from the top and to have oversight, accountability and responsibility for monitoring.
“History has shown time and time again the corrosive impact that pockets of ‘bad’ culture can have on a business. But where people are aligned around the organisation’s purpose and values, they are more likely to make the right choices when faced with a difficult decision, even if it may not always be the easy thing to do as targets may be missed.”