Previous articles in my series on company culture focused on the impact of negative employees, why employees remain silent instead of reporting negative behavior in peers, and exploring if culture was just about benefits or something deeper. Finally, I’m going to turn my attention and your eyes (hopefully) towards a much deeper subject – can company culture impact the bottom line?
In a word, yes.
Let me explain.
In a simple model, happy employees are well, happier when they deal with customers, which in turn leads to happy customers who view the brand more favorably. And, favorable brand views equate to the perception the brand is better than competitors, leading to repeat purchases and a positive impact on sales. Higher sales equal more revenue equals more profits, equalling a better bottom line. [NOTE: I did indicate this is a simple model, so we’ll assume this company has manages costs well.]
I’ve never worked at Chick-fil-a but almost everyone who has visited remarks about two things: (1) how courteous their employees are and, (2) how efficient their drive-thru works. Those two combine to create some very favorable brand views, loyal customers, and their sales volume and expansion speak for themselves. Part of what Chick-fil-a does differently from most fast-food chains is their commitment to their people. The interview and hiring process is more rigorous than others, and once hired the employees notice that training is as much a part of the culture as the commitment to remaining closed on Sundays. What great training programs do for culture is to establish the conditions for success early and often with employees, leaving no doubt on what they have to do each day to be successful. If all of your employees know what is expected of them, and what they can expect from their leadership team, then they are free to serve the customer with a smile and an efficiency that has become legendary in the markets Chick-fil-a serves.
I’ve also never worked at HubSpot, but I did get to visit headquarters once while attending #INBOUND16. It’s a fabulous place and looks like what you’d expect out of a software platform for marketers and sales professionals. What’s truly exciting about HubSpot is how open they are to the outside world about what they offer their employees in the way of perks and benefits and fun work atmosphere. HubSpot is in a competitive space and attracting and retaining top talent is a stated objective of theirs. So how exactly do you create a high-performance culture that’s also fun? According to the HubSpot model, they recognize today’s workplace often extends after hours and into the home. With mobile devices and their 24/7/365 online marketplace, taking care of employees inside and outside the HubSpot campus is a priority. That’s a unique approach and one that is rewarded by employees who love what they do, who they do it for, and stay.
Unlike the previous two companies, I have worked at Verge Pipe Media (VPM) – I started the agency – and one of the things we’ve always focused on was giving our employees fun events to look forward to and participate in. The day-to-day grind of creating compelling social media and inbound marketing content quite frankly is boring. I’ve been quoted at the office with saying, “there’s a lot of incredibly unsexy work that goes into creating remarkable, customer-facing content.” VPM celebrates birthdays and anniversaries with monthly team lunches that sometimes extend well into the afternoon. We allow the employees to choose the location in downtown Auburn and VPM or I pick up the tab. It is a fun tradition and more than a few employees will lobby for their favorite restaurant if that month’s honoree can’t decide on a location. It isn’t much, but it is consistently rated as a favorite tradition in exit interviews and in my feedback loops with employees.
The one thing all three of these companies have in common is they enjoy a healthy bottom line, especially within their, “space.” Sure, Chick-fil-a and HubSpot have a larger footprint than VPM, but in our own right, we command the highest rates in our region and enjoy very nice margins compared to other independent agencies. I can’t speak with confidence to the front-line employees at the other two companies, but I regularly ask my client-facing employees, “do you feel empowered to act on your own when a client asks you for something, even if you feel you should consult with me?” That’s a direct result of offering as much training as we can afford, work perks that are unique in east Alabama, and a fun atmosphere where employees are involved, relaxed, and able to speak freely in work and social settings.
So what do you take from these three examples you can put to work in reshaping or even building your own company culture?
Invest in training. Obviously, you’ve got to start by hiring the correct folks in the first place, but don’t bring them on-board and then leave them to figure things out on their own. Training should also include a healthy dose on the history of your company including where you’ve excelled and where you’ve fallen short. Openly discuss your test and learn strategy, your growth plans, mission, vision, and purpose, and your core values. Many companies fall short by skipping these important factors thinkings, “they’ll see the mission statement in the breakroom every day.” I would suggest all these expectations, core beliefs and company’isms should be interactive face-to-face discussions instead of just passing out playbooks or pieces of paper.
Support the team. Because you’ve spent so much of your own time in training, your employees will immediately start off knowing they can speak with you about almost anything. You’ve earned trust by engaging in meaningful dialogue about what success looks like at your company, on your team, and in their daily work. The conversations can’t stop once training ends – they must continue across all aspects of your employees’ day. One important generational aspect a former employee pointed out to me in a previous article is the need for Millennials to receive positive feedback daily. Trust me, if you’re a Gen X’er, that’s not a natural process. Sometimes you’ll have to reach to find something positive to say and on a few occasions I’ve been known to leave it at, “I appreciate you coming in with a smile on your face today.” Remember that previous post where I talked about employees keeping quiet instead of speaking up? Establishing this critical communication piece upfront will go a long way towards making your workplace drama and toxicity free because your employees will know they can speak to you about anything.
Maintain a fun, rewarding environment. This one is admittedly tough if you have a remote workforce or employees who aren’t always at the same location. However, look for something you can do monthly at a minimum where employees are allowed to come together socially and enjoy some time away from their laptops, phones, and iPads. It can be lunch, after work happy hours (be careful when booze is involved (self-explanatory)), morning coffee talks, holiday celebrations, and whatever makes sense in your industry or vertical. The point is to use these get-togethers as a chance to publicly praise and reward positive behavior in your employees.
If your company is struggling with the bottom line, I beg you to look beyond cost-cutting measures and take an honest appraisal of your company culture. I’m a firm believer that happy employees whose work needs are met, take care of your customers who in turn, take care of your bottom line. So if you ask me, “can company culture impact the bottom line?” my answer is a resounding, ‘absolutely’ – whether or not it’s in the red or the black is up to you.
As always, I welcome your comments and if you made your way here by referral, I’d love to connect with you on LinkedIn. Please just tap the button below and let me know!
Article Featured Photo by Lukas from Pexels

