Workplace Culture: Why Recognition is Important

Culture has the power to influence many aspects of your organization’s operations. That’s because workplace culture is part of everything an organization does. From policies and procedures to your company’s values and beliefs. So, what exactly is workplace culture, and how can recognition create a workplace culture that will flourish?

Workplace Culture: Definition

Culture is a hot topic these days, especially surrounding discussions on remote work and many organizations returning to office-based work. At its core, workplace culture is the shared values, behaviours, and goals of the organization.

Workplace culture is the foundation of the unique identity your organization needs to stand out from the rest. Like employer branding, workplace culture has the power to attract top talent and build stronger relationships with your clients. Think of workplace culture as your organization’s personality and unique traits.

Culture and employer branding go hand in hand. While employer branding focuses on how prospective employees will see your organization while looking for a job, workplace culture is what will ultimately make them stay.

Workplace Culture: Importance

By now, most organizations understand that workplace culture can bring benefits such as better communication between teams, enhanced trust between employees and higher efficiency.

In fact, according to a Deloitte study, 94% of executives think of culture as a vital component to business success. What’s more, when looking at successful organizations around the globe, you’ll notice they all have one thing in common: a strong workplace culture.

A strategic workplace culture built by design (versus by default) is important because it will influence your employees by creating a better sense of belonging. Employees that feel like they belong and bring their authentic selves to work, influence organizational performance.

“Millennial turnover costs the US economy $30.5 billion annually” (Gallup Report, 2022)

With millennials voluntarily leaving their jobs at a drastic rate, it’s never been more important to analyse what’s working and what needs improvement.  

Millennial workers – the largest working generation today, are different from previous generations in that if they don’t like the culture, they will leave for a new employer. Moreover, a likeable culture needs to be genuine – it must reflect your organization’s values and ideals.

Defining your workplace culture 

Now that we know why culture is so important, and why it has become so top of mind in the last few years, how can you define it and make it stronger?  

1. Employees need to believe in it: Whether your company is a start-up, or a large enterprise, workplace culture has been part of who you are as an organization from day one. By now, however, one important thing you’ve probably realized is that you can’t force people to believe in it. Sure, you can tell them what you believe the culture is all about, and how to work within that culture, but this approach is unsustainable and distracting for leaders and employees. According to thought leader, Simon Sinek, the key is to get early adopters and innovators in your organization onboard with your desired culture and values first, and if they buy-in, the rest of the company will follow. One way to reinforce your culture according to your vision and your values, in an authentic way, is through recognition. Voluntary, peer-to-peer recognition has the right ingredients to make everyone believe in your workplace culture. Moreover, linking recognition to your core values will reinforce the culture you’re trying to achieve and embrace. So, if you don’t have a recognition program in place, that’d be a great place to start. Kudos’ unique approach to recognition allows you to link recognition back to your organization’s values. Remember that you already have a workplace culture; all you need is a little help defining it.

2. Focus on engagement: With many of us working remotely and only 3% wanting to return to an office full-time, it can become tough to define and enrich your workplace culture. According to a Gallup report, only 34% of US employees feel engaged at work. This is extremely low, yet it is the highest level of engagement since the early 2000s. With a tool like Kudos, teams will have an online forum where employees can celebrate accomplishments, recognize peers, and feel more connected to your organization’s culture. Kudos can transform the challenge of remote work into an opportunity for employees to connect, celebrate and learn more things about each other. But regardless of whether your team is remote, hybrid or in-office, appreciation for their hard work will directly have an impact on your workplace culture because it boosts employee’s morale.

3. Adapting to new generations: One sign of great workplace culture is the ability to adapt and attract top talent. With generations like millennials and Gen Z making up almost half of the full-time US workforce, your organization’s workplace culture needs to focus on what they care about the most: Benefits, flexibility and recognition. These generations appreciate having mental health benefits and work-life balance. Even before The Great Resignation, millennials and Gen Z were opting for organizations that cared about their wellbeing. In a post pandemic world, adding a comprehensive employee benefits package that includes mental health resources such as employee family assistance programs (EFAP) or high maximums for psychology, will lower absenteeism and increase productivity. Additionally, both generations crave flexibility, meaning they don’t want rigid working hours. A study done by Deloitte found that three quarters of millennials and Gen Z would prefer hybrid or remote work. Unique circumstances like mass layoffs and more than a few economic recessions have made these two generations crave better recognition at work. So, by creating a culture of recognition, you will see higher employee performance because employees will trust you and feel safe.

Looking ahead

Leadership plays a big role in how workplace culture is developed and evolves. It’s demonstrated that when employees take pride in the workplace culture they share, everyone wins. Employees want their needs to be met, but they also want to know the work they do is appreciated. By recognizing and adapting, employers that strive towards a positive workplace culture will thrive.

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