How does Poor Work Culture result ETO?

 

The management textbook Organizational Culture and Leadership defines workplace culture as “Culture is best thought of as a set of psychological predispositions called basic assumptions held by members of an organization and which tend to influence the ways in which they behave.” (Mandrell, 2022).

In simple terms workplace culture is “the way we do things around here.” Every organization has a set of values, rules, attitudes, and even unwritten practices that make up its unique culture. Culture will dictate the way employees handle problems, interact with each other, and carry themselves on a daily basis (Insights, 2019). That’s the reason which from a management perspective, it is important to set organizational culture’s tone early on. For an example, a well-known apparel manufacture in Sri Lanka, MAS Holdings is very much recognized for its workplace culture which is unique and different from other organizations in the country and people are attracted towards the organization based on its working culture as well.

                    Fig 01. Impacts of Work place culture to an organization(Insights, 2019)

It is also important to remember that workplace cultures, like regional and ethnic cultures, are complex and not monolithic. They can be contradictory and based on generations

While there are meaningful patterns, it cannot always be assumed that success in one area can be repeated every time. Developing workplace culture will take effort and a lot of active management participation

It is not a doubt that workplace culture impacts retention. Studies depict that at least one-third of job seekers would pass up the perfect job if the corporate culture was a bad fit, and in one study 72% of workers cited corporate culture as a factor influencing their decision to work at a given organization (Wong, 2020). Moreover, on another survey of jobseekers who had left a job within the first 3 months, 32% listed that organizational culture as the main reason.

                                Fig 02. Economics at workplace culture(altametrics, 2022).

What is Bad Workplace Culture?

Lack of engagement is statistically the biggest issue on employee retention in the corporate world, and it impacts both well-performing and under-performing employees similarly (Heinz, 2022). It can be  pointed out that unengaged employees are three times more likely to leave even if they’re well-paid.

Other negative habits in workplace culture tend to be contagious such as tardiness, negative attitudes, procrastinating. It is important to remember that the leadership sets the standard for employees, so it is important to lead by example.

Rules and regulations are important but at the same time those can also create a stifling atmosphere if overused. If rules and policies are over considered, employees will survive in fear of simple mistakes and be unable to work with a relaxed state of mind at the workplace. And may lead to a heavier, palpable atmosphere at work(altametrics, 2022). For an example is employees have to spend 40 hours a week in such a tensed environment that will be enough to make anyone depressed.

                        Fig 03. Toxic workplace culture and avoiding tips(altametrics, 2022)

What’s a Good Workplace Culture?

Having a clear set of values is a main role of an organizational. It is the “mission” and the legacy that will be left behind. Ultimately, company values are what the employees will personally identify as the difference they are making in the world while they are employed(Agarwal, 2018).  So the corporate values of an organization should ideally be something that brings people enthusiastically together.

Good workplace culture also rewards in effort and engagement. Just like bad workplace culture overemphasizes punishment, good workplace culture emphasizes reward. Employees who strive to innovate or go the extra miles for a co-worker should feel appreciated in the form of special recognition(Kashyap, 2022).

                                Fig 04. Elements of a good workplace culture(Agarwal, 2018).

In this era of globalization, organizations want to develop and grow in accordance with the demands of the rapidly changing environment( Paunova & Blagoev, 2021). As a result, organizations are defining values, mission and vision which create the sense of who they are and what they stand for, as well as developing a workforce who are committed with no intention of leaving the organization.

Fig 05. ETO due to poor workplace culture globally( Paunova & Blagoev, 2021).

Shaping a Culture that Will Retain Employees

If employees do not feel comfortable in the environment within the organization—chances, are they will not be staying for long. Here are ways to shape a culture that drives employee loyalty.

High turnover and organizational culture have a difficult, symbiotic relationship. High Employee turnover creates fractured workplace relationships and an organizational culture that doesn't encourage long and productive working relationships(valamis, 2022). Building an organizational culture in a company with high turnover requires employers to develop methods that improve employee retention. Benefits and training are main two methods that may increase employee tenure. Mentioned below are some strategies which can be practiced as good workplace culture to reduce ETO and retain employees in an organization.

·         Onboarding and orientation

·         Mentorship programs

·         Employee compensation

·         Wellness offerings

·         Continuous feedback on performance

·         Training and development

·         Recognition and rewards systems

·         Flexible work arrangements

·         Effective change management

·         Acknowledgement of milestones, big and small

References 

altametrics, 2022. Signs and Examples of Bad Company Culture. [Online]
Available at: https://altametrics.com/company-culture/bad-company-culture-examples.html
[Accessed 21 November 2022].

Agarwal, P., 2018. How To Create A Positive Workplace Culture. Forbes.

Heinz, K., 2022. Toxic Work Culture-BuiltIn. [Online]
Available at: https://builtin.com/company-culture/bad-company-culture
[Accessed 20 November 2022].

Insights, H., 2019. Workplace Culture: What It Is, Why It Matters, and How to Define It. [Online]
Available at: https://www.yourerc.com/blog/post/workplace-culture-what-it-is-why-it-matters-how-to-define-it
[Accessed 20 November 2022].

Kashyap, S., 2022. Happy Work Culture – What It Is, Why It Matters, and How It’s Built. proofhub.

Mandrell, J., 2022. Work Culture and Retention. [Online]
Available at: https://www.dentalrecruitingnetworkusa.com/work-culture-and-retention/
[Accessed 20 November 2022].

Paunova, M. & Blagoev, B., 2021. Global Talent Retention: Understanding Employee Turnover Around the World. Globalization and Employee Turnover, pp. 87-108

valamis, 2022. Human Resources- Work place culture. [Online]
Available at: https://www.valamis.com/hub/work-culture
[Accessed 20 November 2022].

Wong, K., 2020. Organizational culture: Definition, importance, and development. Achievers.