Company culture is what wins or loses. Good or bad (which, is a largely subjective descriptor), your culture allows you to determine and enforce consistent behavior among employees, ensuring that your customers have an experience that delights them.
Which is why companies that have a subjectively “good” company culture typically have lower turnover, happier clients, and better quality. That is..those companies win. On the other hand, companies with “bad” cultures, well, check out the Washington Generals for yourself.
But what, exactly is the ROI of a good culture versus a bad culture?
If you try to put numbers to how happy your employees are, then engagement and fulfillment are the best ways to track culture ROI. From there, you can use this handy calculator to measure engaged vs. unengaged employee ROI’s. In a nutshell, if you have an unengaged employee that is salaried at 40k/year, they will cost you $230/day (source).
To do the math, an unfulfilled employee, costing their organization $230/unengaged employee/day will result in $1150/week lost and $57,500/year lost. More, if you have an unfulfilled employee at a higher salary level.
So clearly, it pays to build a culture that promotes employee engagement. Despite that, according to a recent Gallup poll, engaged employees account for less than a third of the total U.S. workforce.
If there are 121.9 million full-time employees in the United States, then simple math will indicate that 83.5 million people are not engaged, and therefore, not fulfilled at their jobs. That rings into the tune of $19,205,345,000 lost EVERY DAY. That’s almost as many Super Bowls as the Steelers will eventually win.
On the flip side, if your unfulfilled employee became fulfilled, they would contribute an additional $21k to your bottom line. If you have 10 employees that means an additional $210,000 without any effort, beyond that of treating your employees well and implementing programs that support them.
And if that doesn’t seem like enough, then consider the following:
40 – 80% of customer satisfaction and loyalty is determined by the customer employee relationship.
Source: White paper by the Corporate Leadership Council
Happy workers are 12% more productive than average while unhappy workers are 10% less productive than average (for a total spread of 22%!)
Source: Andrew Oswald, a professor of economics at Warwick Business School
The moral of the story? Investing in your employees is good for your bottom line.