10 Indicators of an Excellent Corporate Climate
Leaders of thriving companies recognize that climate is fundamental to performance. Healthy, positive environments are correlated with an increased return to shareholders as well as greater agility in times of change. They also contribute to better people outcomes like improved engagement and well-being.
In comparison, toxic workplaces are costly. One estimate from MIT Sloan revealed that the U.S. economy loses $50 billion each year due to poor work conditions, while another report from Breathe HR showed that the U.K. economy loses €20.2 billion annually. That is just two countries. Imagine the impact worldwide!
The companies that succeed in the long run will be the ones that prioritize culture and climate. To evaluate where an organization stands in terms of its atmosphere, I invite you to consider the 10 signs below.
#1 – People Respect One Another
In a healthy environment, the workforce values one another. While appreciation may look a little different depending on the individual, some signals that indicate that mutual respect is alive and well include employees seeking out the expertise of colleagues and listening to inputs with openness and curiosity.
#2 – Employees Trust the Company and their Colleagues
Trust is an integral part of a positive workplace. When staff members have faith in the business, their managers and their coworkers, it allows them to contribute at a higher level because they know everyone else is committed to (and can) accomplish their objectives. Signs of trust include team members giving others the benefit of the doubt, being open to feedback as well as rallying behind their colleagues and leaders.
#3 – Involvement Is High
Flourishing cultures typically have robust participation rates across the opportunities and activities that are offered to employees. Keep in mind that 100% participation should not be required in every event, especially given the fact that individuals will have distinct interests as well as varied commitments outside of their working lives. That said, when company gatherings are well-attended, it’s a marker of a positive workplace where people want to engage with one another.
#4 – Transparency Permeates
Honesty allows organizations to thrive. When staff members are open about their challenges and opportunities, it shows that they believe they will be given the grace and support to work toward their next steps. Similarly, when managers and leaders are clear about the decisions that are being made and where the corporation is heading, it helps employees feel more confident in the institution and a valued part of its future.
#5 – Positivity Is the Norm
While companies and people will experience ups and downs, confidence is typically higher inside a prosperous atmosphere. That’s because employees believe that even in the face of obstacles, there is opportunity for them, their teams and the business to find a way forward. Some dips in morale will occur, and healthy workplaces generally have increased engagement rates and a sense of optimism.
#6 – Performance Is Trending Upward
Plenty of research has demonstrated that positive work conditions are correlated with healthy financial outcomes, so following the money can reveal a lot about the climate. Certainly, some quarters will be better than others, and typically, when goals are being achieved and targets met, that’s a sign that the environment is also strong.
#7 – Learning Is Prioritized
Training and development are essential in the workplace. These pathways for internal growth allow for long-term success by engaging individuals, creating a succession pipeline and ensuring that teams can take on the challenges of the future of work. Review the training programs offered within the organization to see if people are signing up, attending and passing to get a gauge on this indicator.
#8 – Recognition Channels Are Active
Another sign of a thriving culture comes from its celebrations. The first step is to make sure that there are platforms for acknowledgments to be shared and given around the company. The next step is to assess how often these channels are being used. Frequent shout-outs from a variety of team members would suggest a positive climate.
#9 – Staff Feel Supported
Strong atmospheres create a space where personnel at all levels are allowed to be whole people. This sort of support can come to life in a number of ways. A few of the elements to look for include individuals being encouraged (and willing) to talk about their lives outside of work, generous benefit offerings as well as time off policies and mental health days that are embraced and used by staff.
#10 – Employee Net Promoter Scores (eNPS) and Referrals Are Strong
The eNPS is a great tool to understand how staff members feel about the place where they work. While statistics like turnover can shine a light on climate concerns, eNPS provides a more nuanced look by asking personnel how likely they are to recommend the company to a friend. In addition to analyzing this score, a review of the actual number of referrals that employees provide for open roles is another clear indicator of a healthy environment.
Considering the indicators outlined in this blog, leaders can gain a better understanding of how healthy their organization is. Remember: Workplace climates are living and breathing things. While point-in-time assessments are important, measuring these factors over time will provide meaningful insights into successes and reveal where opportunities for improvement may exist.
Want to strengthen the culture and climate of your organization? Explore our website to learn how Emergenetics can help you or fill out the form below to speak with one of our team members today!
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