#39 Why Investing in Your People & Culture Pays Off: The Business Case for Employee Happiness
We know why we do the work, but often it's not clear to others. But investing a solid People and Culture strategy rewards your employees, and your bottom line.
People & Culture work (or HR as it's commonly and archaically known) is often seen as a support function in organisations. But it plays a vital role in your organisation's success (I mean, you and I know this, but others? Not so much). A great people strategy creates a positive work environment where employees feel valued, supported, and motivated. As a result, they will show up and smash it. When employees feel genuinely cared for by your organisation, they worry less about what's best for them and more about what's best for the team.
A simple truth: your people are the backbone of your organisation. Your people create your products and services, talk with your customers, and make your company what it is. Studies show we work harder when we are happy and engaged; we become more productive and motivated to do our best work. Conversely, when we are unhappy, stressed, or disengaged, our productivity and motivation suffer (I've definitely experienced this), which has a ripple effect throughout the entire organisation.
This is where our People work comes in. It's not just about attracting or retaining people but also about creating a supportive and nurturing environment. So, a strong HR strategy should definitely include stuff (benefits, programs, and policies) that promote employee well-being, work-life balance and professional development.
The key to all this is employees who feel valued and supported are less likely to leave and more likely to recommend you to their peers. High turnover costs a lot in terms of the time and resources to find and train people, but also through the loss of knowledge and expertise.
Employees who feel part of a supportive and inclusive culture are more likely to be engaged and motivated. As a result, engaged employees are more productive, creative, and committed to their work. They also positively impact your company's bottom line, as they are more likely to stay with the company and less likely to take unscheduled time off, slack off (or 'quiet quit') or miss deadlines.
Two examples of companies that do this really well are Google and Patagonia. Google is known for its work environment, which includes perks such as free food, on-site gyms, and support for professional development. Googlers stick around for these things. The lesser-known Patagonia, the outdoor clothing and gear company, is famous for its commitment to sustainability and environmental activism, which is reflected in its People & Culture strategy. The company offers its employees opportunities to volunteer and get involved in environmental causes, and it has a solid commitment to work-life balance. Both of these approaches work to keep bums on their seats.
People & Culture work matters because it has the power to shape the success of your company. Investing in your employees and creating a positive work environment can reduce turnover, improve employee engagement, and drive business success. So, if you're looking to create a culture that supports and nurtures your employees, your People & Culture strategy is the place to start.
Remember, People & Culture work is not just a cost centre; it's an investment in the future of your people and your organisation. So, if you want to create a culture of success, start by investing in your People & Culture strategy. Then, your employees and your company's bottom line will thank you.
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