How Does Behaviour Shape Your Company Culture?
Every business should aim to cultivate a strong organisational culture, and paying closer attention to employee behaviour is a guaranteed way to achieve this feat.
Culture is a fundamental aspect of a business’s success. It forms the DNA of its very operations, serves as the primary reason for employees to remain loyal, and plays a crucial role in prompting clients to continue doing business with your company over other competitors. A strong company culture also draws top talent, which can significantly increase your business's value when you’re ready to exit.
There is a growing interest in prioritising company culture across all industries as its cultural and commercial impact becomes more evident. Even the Banking Royal Commission in Australia demanded that large companies take the matter more seriously, underlining the importance of company culture by announcing that Boards will now be held accountable for toxic and destructive cultures.
We’ve previously discussed how company culture comprises various aspects of a business—values, vision, and purpose. Now, we want to explore the factor that ties them all together: behaviour.
Why look at behaviours within a company?
Most companies may recognise behaviour as an important factor in how they operate internally, but its role is much more prominent than what many think.
Behaviour refers to how individuals conduct themselves, particularly in the company of others. According to Lauren Ayers, Senior Consultant at Stellar, it acts as the visible manifestation of deeper underlying principles. Lauren often uses a helpful model called the “whole person concept,” which visualises how individuality functions in an interpersonal context. In this particular model, we view a whole person as an iceberg, with behaviour as its tip. In a workplace setting, we see the behaviours of colleagues. However, we are often unaware of the underlying dynamics and drivers, such as personal needs, beliefs, and upbringing, that influence these behaviours. Simply put, we see mere parts of an individual but do not have access to the more complex aspects of being that say more about who they are and why they behave the way they do.
Going back to the idea of a company culture, essential elements like purpose, vision, and corporate values must be internalised by individuals to ensure that their behaviours align with the organisation's goals. These elements are like the bulk of the iceberg beneath the waterline, driving employees’ thoughts, feelings, and ultimately, behaviour. For an organisation to function cohesively, these intrinsic principles must be shared and upheld by all members, leading to consistent and supportive employee behaviours that reflect the collective objectives.
One of the challenges in today's world is the loss of a common denominator, where societal goals are no longer unified. For Lauren, this makes it even more important for organisations to align their members around a shared purpose, vision, and values. When these principles are embedded in the DNA of the organisation—or the culture—the resulting employee behaviours are cooperative and aligned, fostering a strong culture.
Commercial impacts of organisational culture and employee behaviour
Why should a business owner work towards cultivating a positive culture, and how does corporate culture impact employee behaviour? The benefits aren’t exclusive to improving relationships per se but actually have commercial value in the long run. We’ve identified three aspects of business where culture offers the most benefit or repercussion, depending on whether you’ve created a positive or negative environment.
Employee engagement
When employees feel a sense of purpose and belonging thanks to a positive company culture, they behave accordingly. You can expect them to appear motivated to contribute creatively and go beyond expectations. This results in better engagement from the team, resulting in improved customer service, higher-quality work output, and lesser or no need for recruitment costs as you get to retain your staff.
On the other hand, a negative culture has detrimental effects, as seen in employee behaviours. It breeds gossip, negativity, and a lack of respect within the team. It significantly impacts morale, as employees become unhappy and unsupported. This results in an overall decline in well-being, which contributes to a lack of enthusiasm, burnout, and mental health issues, creating a vicious cycle of disengagement and dissatisfaction among staff. High turnover rates are another consequence, as employees are more likely to leave such environments, necessitating costly and time-consuming efforts to replace them and disrupting team dynamics and morale in the process.
Productivity
A positive culture that emphasises collaboration and knowledge sharing among members of the team tend to produce more productive employees, as they engage in effective teamwork, innovative problem-solving, and continuous improvement.
However, productivity can be undermined by a negative work environment in various ways. It demotivates employees, leading to heightened stress levels, increased procrastination, and lower-quality work. Interpersonal conflicts can also escalate, dragging the effectiveness of team collaboration.
Reputation
A strong company culture shapes the organisation's public perception. Remember that your employees are your best brand advocates. Customers whose personal values are aligned with the corporate values your representatives uphold would be drawn to trust and support the brand. Culture can serve as a potent marketing tool, appealing to top talent and investors who match the company's vision and purpose. This alignment creates a positive feedback loop where a supportive culture not only benefits internal operations but also improves external relationships and overall organisational success.
Contrary to this, toxic cultures also tarnish a company's reputation. They make it challenging to attract top talent and clients, with negative experiences easily shared through social media and online reviews. Such public perceptions can deter potential investors and may even lead to legal and reputational challenges for the organisation.
With Stellar, you can create a company culture you control
A good company culture is easy to maintain when things are going well, and everyone is getting along. However, true culture is tested during challenging times. When conflicts arise or productivity is threatened, it is the consistent and value-driven behaviours of individuals that determine the organisation's resilience and success. Employee behaviour is the central catalyst that reveals the health of the culture, underpinned by the shared purpose, vision, and values of the group.
To create a culture you control, rather than one that controls you, work with us at Stellar. Our consultants are proud to have assisted numerous clients in enhancing their company culture and inspiring employees to align their behaviours with the company's vision, corporate values, and purpose. Through regular consultations, top-notch methodologies, and hands-on strategies tailored specifically for your team, we can help you achieve a stronger, more resilient business culture that enables you to reach new levels of success. Learn more about Stellar here.
