Yes. This will be another post about the importance of culture (because it’s important!). However, this time I’m going to write about the flip-side. Normally, I spend time talking about the importance of good culture, mainly because it has a lot of business benefits. On the other hand, it is also important to educate people on bad culture and the negative effects it can have on your workforce and company as a whole. Thankfully, a few individuals took the time to speak to me about their bad company culture experience and those conversations have allowed me to compile some key points.
What can bad culture mean for your business? Read on:
- Lack of productivity and quality of work: if your workers are unhappy, their work will suffer. Bad culture can reduce morale, which could reduce motivation. Reduction in motivation means productivity will slow down or even come to a standstill.
- “Poison to the well”: negative employee experiences and emotions can spread fast like an aggressive infection. If an employee is dealing with the effects of bad culture, they could start to spread the word to others about their experience. This could result in current and new employees to start to have these perspectives. At that point, your staff is compromised.
- Lack of dedication and commitment: if your employees feel like they can’t trust the company, then don’t expect them to stick around or to work like they will be there in the long-term. Their minds are most likely thinking about where they’re going to apply to next or how much they dread being there.
- Lack of commitment means high absenteeism and turnover: what do you do if you dread going to work one day? Most people take a “sick day”. What do you do if you dread going to work EVERY day? Take as many “sick days” as you can (at least, that’s what the individuals in a bad culture had told me). Additionally, turn over will be high and most people will want to get out of that situation as fast as they can that they may not even give a proper two weeks notice. That means you’re down an employee and you have no one even in the pipeline to potentially back-fill that spot.
- Your employer brand will suffer: your employer brand is everything in terms of attracting quality talent. If you aren’t attracting super-star candidates to your company, you will be left with the average-Joes. Slap the average employees into your workforce and your products/service quality will be negatively affected which means that you could start losing clients to a competitor that does it better.
The above points are every human resources professional’s nightmare. More importantly, it is extremely hard for a company to bounce back after it gets to that point and some maybe never will. It’s important to notice the early signs of a culture going bad to ensure you can turn it around early on. Otherwise, this may be an uphill battle a company may never win.