Culture and Performance
Many companies believe that creating a culture where everything is cutthroat, where highly competitive employees are actively pitted against each other and where profits trump everything is the way to drive success.
However, as outlined in this article citing several studies that appeared in the Harvard Business Review, the opposite is actually true.
Employees that work in positive environments tend to take fewer sick days and suffer less from mental health problems.
While high stress toxic environments that are driven by fear and competition rather than collaboration tend to lead to long term engagement too. Which means that while you might get more from your people in the short term, they will become burned out and demotivated much faster, and in higher numbers.
Then there is voluntary turnover – in other words, more people resigning. After a while in a pressure cooker environment, most people will put their personal happiness before any material benefits. So even if you pay your people well, if they’re miserable at work, they’re more likely to look for a new job. Many will even take a pay cut to find a better place to work.
All of these things have only been compounded by the “Great Resignation.” Over the course of the pandemic, people around the world are re-examining their work lives, and when they find that they’re no longer happy, they’re much more likely to take action to correct the problem. That usually means finding a new job.
The cost to find, hire and retain good people is enormous for most companies. So, this is a serious problem. So, if you’re experiencing high turnover, and you’re not actively trying to build a better company culture, you might be self-sabotaging your efforts. It’s like filling a bucket with a hole in it. You can keep trying, but you’re never going to be able to solve the problem until you plug the hole.