A strong, people-oriented culture is a non-negotiable for the maximized success of businesses in today’s corporate climate. Companies who are creating business strategies around employees [versus trying to fit employees into the holes of strategies post-creation] are increasingly rising above their competition, capitalizing on their people and watching the revenue follow.
It’s true: prioritizing employees is proving to have a stronger long-term impact on sustainable growth than increased funding from external sources. A lack of retention is sinking corporate ships, while employee engagement is fast-tracking growth.
Companies who are creating business strategies around employees are increasingly rising above their competition
Doubt it? Check out the data:
Facts:
The following statistics come from the most comprehensive workforce studies ever conducted (2023-2024). Additional details can be found at the end of the article.
- Disengaged employees* cost the world $8.8 trillion in lost productivity annually
- The cost of replacing a single employee ranges from 1.5 to 2.5-times that employee’s annual salary. In a 100-person organization that offers an average salary of $50,000, that is an expected turnover cost of up to $2.6 million per year.
- Negative company culture is 10.4 times more likely to contribute to turnover than salary. It is the most powerful predictor of a company’s attrition rate within its industry.
- Organizations that prioritize employee well-being have on average 2.5-times higher revenue growth than those that do not.
- Employee engagement has 3.8x as much influence on employee stress as work location.
- Organizations that invest most heavily in Employee Experience are found: 11.5x as often in Glassdoor’s Best Places to Work, 4.4x as often in LinkedIn’s list of North America’s Most In-Demand Employers, 2.1x as often on the Forbes list of the World’s Most Innovative Companies, 2x as often in the American Customer Satisfaction Index
People are a company’s biggest asset, period. And, it is becoming more apparent than ever.
And yet, only 28% of executives understand their company’s culture.
Case Study:
The following are findings from Gallup’s most recent employee engagement meta-analysis of 112,312 business units that were selected by analysis of more than 2.7 million workers across 100,000+ teams.
Teams scoring in the top quartile on employee engagement saw the following benefitscompared with bottom-quartile teams:
- 23% higher profitability
- 18% higher productivity (sales)
- 14% higher productivity (production records and evaluations)
- 18% lower turnover for high-turnover organizations (those with more than 40% annualized turnover)
- 43% lower turnover for low-turnover organizations (those with 40% or lower annualized turnover)
- 10% higher customer loyalty/engagement
So, what DO employees want?
First, it is important to note that a tailored approach to culture strategy is critical. There is never a one size fits all when it comes to people. That being said, there are some clear trends we are seeing.
In 2024 a majority of employees want:
- Want their jobs to make good use of their skills and abilities; to feel respected at work; to feel safe at work; and to work with integrity – in that order
- Expect to be heard. There is a need and an expectation that leaders will take action, tell them about it, and make changes for the greater good of the organization, yes – but also to benefit people first, and foremost.
- Want their employer to prioritize their career goals, learning and development, and ongoing growth
- Expect leaders to introduce policies and processes that empower them to work from home and the office, focus on outcomes (not hours), and build meaningful relationships with their colleagues and teams.
- Want new technology; tools to optimize their productivity and allow them to focus on work they feel energized by
A tailored approach to culture strategy is critical. There is no one-size-fits-all
As a business owner or Executive Leader in today’s corporate climate, knowing YOUR employees and taking action around THEIR needs is the game changer for your bottom line.
How are your employees doing? Are you sure?
Reach out to me at bgarvin@kgworkforcesolutions.com to see if KG Workforce Solutions Culture Audit & People Strategy services make sense for your company.
Sources:
- Gallup’s 2023 State of the Global Workforce Report.
- Qualtrics 2024 Employee Experience Trends.
- Gallup’s Q[12] Meta-Analysis Report.
- FSTE Russel.
- Lattice.
- Deloitte HX TrustID.