Many companies have their organizational values written in beautiful chalk handwriting in the break room, or framed and hung on the walls of the front desk. Corny, right? Don’t discount the importance of displaying your values—it can have a significant impact on your bottom line.
The best companies develop and identify core values that affect their company culture, brand, and business strategies. For Zappos, one organizational value is “Create fun and a little weirdness.” For Barnes & Noble Booksellers, it’s “customer service.”
A company's values can set it apart from the crowd and serve as a guideline for how employees should communicate and interact with each other. These values not only define culture, but they also improve engagement, productivity, and retention, all affecting the bottom line.
Here are five examples of organizational values and their financial benefits:
- Respect: Respect fosters collaboration and synergy, which are essential for creating a productive workplace environment. And without respect, conflict is more likely to arise. Workplace conflict leads to decreased productivity, morale, and job satisfaction, which ultimately affect the bottom line.
- Accountability: Fostering a culture of accountability lowers employee turnover and improves business processes. It can also save time and money. When a colleague fails to take personal responsibility, extra time is spent trying to locate the problem and fix it. Your employees’ time is better spent working toward company goals than playing detective. After all, time equals money.
- Teamwork: There’s strength in numbers. Working in groups creates a better workflow and allows tasks to get work done faster. Efficiency goes hand-in-hand with performance. When employees have supportive peers they enjoy working with, they’re more likely to go the extra mile and spend more time producing amazing results.
- Diversity: A diverse workforce breeds creativity, innovation, and productivity. Businesses that fail to value inclusivity see higher turnover rates, which can cost as much as 150% of one employee’s salary in recruiting, interviewing, and training expenses. The best example of diversity’s financial benefits is on the national level. Women’s overall share of labor has increased 10% in the past 40 years, making for a more diverse workforce and accounting for a quarter of the current GDP.
- Fun: There’s a reason companies focus on fun, like employee happy hours or a company foosball table. 88% percent of millennials want a fun and social work environment. They are more productive and engaged when they are happy, so the freedom to relax and laugh with colleagues will actually result in a boost of productivity.
Creating organizational values is not just another fluffy team-building exercise. They define your company’s culture and set expectations for all employees. They lead to increased productivity, higher retention, and increased workplace morale, all with strong financial benefits.
Time to get out the chalk.
- The Complete Guide to Creating and Living Organizational Values
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