HR Insights
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August 27, 2024

The power of improving organizational culture

Digital transformation is often the focus of business success. But there’s an often-overlooked element – improving organizational culture. Dayforce partner Gate One explains the trends impacting culture and must-do actions for employers.

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Today, change is constant. Tech advancements, shifting workforce demographics, and dynamic societal changes are all contributing to the ongoing change. To stay ahead and remain competitive, organizations must adapt to uncertainty.  

Forward-thinking companies are becoming more agile, pivoting their technology, strategies, and operating models to stay ahead. But within these transformations, one crucial element often gets overlooked – improving organizational culture. While it's easy enough to foster a positive culture in the good times, it becomes a lot more challenging during tougher periods. And uncertainty is hard on everyone. 

A thriving culture acts as a strategic and competitive advantage, enabling quicker and more confident decision-making while mitigating risks. Research from Microsoft shows that companies with a strong culture see a 72% improvement in employee engagement, which leads to enhanced innovation and productivity. 

In this blog, we’ll delve into some key strategies to help you foster a winning organizational culture. But first, let’s look at what’s helping to shape organizational culture today. 

Generative AI 

Generative AI (GenAI) is revolutionizing the way we work by automating tasks and enhancing productivity. And it will continue to transform workplace culture as well as technical innovations. Employees are ready to embrace these tools. 

An impressive 92% of employees in a recent Microsoft survey express a strong desire for AI to assist with administrative tasks. Employees want to work smarter, not harder. To fully harness the potential of AI and boost employee productivity, leaders should prioritize upskilling and educating, ensuring that employees are well-prepared to leverage the latest technologies. 

The big disconnect 

There's a growing disconnect between leaders focused on profitability and employees prioritizing mental health and flexibility. For organizations, it is critical to adapt management strategies to incorporate employee well-being and flexibility. This leads to higher productivity, enhanced employee retention, and overall improved organizational performance. Addressing these divergent priorities can create a more harmonious and effective workplace, bridging the gap between employees and leaders to create a culture of caring. 

Flexible working  

In the post-pandemic era, flexible work arrangements have become a necessity rather than a perk. Organizations must offer customizable work schedules and environments to meet employee needs. To retain talent, organizations must provide employees with control over their work schedules, locations, and task completion methods - these factors significantly enhance job satisfaction and productivity.  

Ethical leadership and governance  

Transparency, ethical behavior and strong governance are becoming increasingly important to organizational culture. Leaders are expected to model ethical behavior and build cultures of integrity and accountability. 

Purpose-driven work 

Ethical leadership and governance coupled with purpose-driven work is being seen as a big cultural trend. Employees, particularly younger generations, are looking for meaningful work that aligns with their personal values. Organizations need to embed a sense of purpose into their cultures, clearly communicating how employees’ work contributes to larger societal goals. 

Improving organizational culture 

To navigate these trends and strengthen organizational culture, businesses must adopt a comprehensive approach that includes four elements: 
 

  1. Stay informed. While the trends we cited above may be impacting organizational culture today, there’s no guarantee that they will hold sway tomorrow. In an ever-changing world, trends change rapidly – and it’s up to employers to stay informed. Employee surveys are a great tool for this purpose, ensuring you understand what really matters to your workforce.  
  2. Encourage experimentation. Innovation is a core part of a thriving culture. Foster it by encouraging experimentation and creating an environment where employees feel like it’s okay to fail. You can build this sense of safety and support innovative thinking by promoting the use of pilot programs to try new ideas. 
  3. Cultivate leadership excellence. To improve organizational culture, leaders should demonstrate flexibility, inclusivity, and a commitment to continuous improvement. But they shouldn’t be expected to do this all on their own. Organizations need to provide leadership training programs to equip leaders with the skills needed to drive cultural change.  
  4. Put people first. Employers must prioritize the physical, mental, and financial well-being of their employees to build a thriving company culture. This includes ensuring that the benefits provided to employees match their needs. And establish a comprehensive DEI program to ensure that every employee feels accepted in your culture. 

The future of work is dynamic and full of opportunities. Embrace emerging trends with confidence, be bold in your strategies, and start implementing changes today. In doing so, you can create and support a resilient culture that attracts and retains top talent, drives innovation, and fosters long-term success. 


 

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