Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business Entrepreneur

Workplace culture is bigger than the snack bar and matters more too

(ENTREPRENEUR) It is no surprise that culture matters, but these numbers show what parts of it truly matter.

Team meeting talking about performance.

Workplace culture

People are talking a lot lately about workplace culture, and with good reason. Your job isn’t just the stuff you do all day. It’s the managers and coworkers and clients you interact with, the physical space (or spaces) you’re located in, and the way you feel when you’re at work.

bar

All of those elements, which are often overlooked in the midst of a pressure-filled job search or a race to a new company or product launch, combine to create a mental space in each employee that we call workplace culture.

Culture is bigger than the snack bar

It isn’t what you’re doing, but how you’re doing it, and how others react to what and how you do it. And culture can make or break a company, especially when it’s just starting out and relying heavily upon fully invested and passionate employees.

That mental space needs to be resilient when you’re working at a startup.

A new report by TINYpulse, a culture and engagement tool, examines the workplace culture of over 100 startups. The report surveyed both startup founders and thousands of employees anonymously, to encourage honest feedback.

Advertisement. Scroll to continue reading.

A telling statistic appears early in the report, and on the surface it’s unrelated to the culture of a company.

Among those startup entrepreneurs and employees surveyed, only 14 percent are women. In pursuit of basic equality, this absolutely should change. But, unsurprisingly, equality is also good for business. Among growing startups, those with female founders were growing significantly faster than those with only male founders. Startups with 200 percent or more growth are 75 percent more likely to have a woman at the helm.

Over estimating

When it comes to company culture, leaders are likely to overestimate how great their culture is, when compared to the ratings of their employees. In all three culture categories – Transparency, Being Valued, and Happiness – the leader ratings were around .75 higher than those of the employees, on a scale of one to ten. Of the three categories, happiness fared the best, at 8.05 for leaders and 7.36 for employees. Transparency came in lowest, but it wasn’t too shabby: 7.80 for leaders and 6.92 for employees.

Interestingly, the more employees a CEO had working for them, the more likely they were to rate the importance of culture a 10 out of 10. Over 85 percent of those with over 50 employees said culture was of the utmost importance, while only 71 percent of those with under 50 employees said the same.

This troubles the popular conception of small startups as entrepreneurial utopias, and larger enterprises as faceless employee mills, but it makes sense.

A larger organization has more opportunities for checks and balances, more people in leadership positions to collaborate on a culture strategy, and sometimes more at stake.

Surprisingly, perks like work-life balance and benefits don’t correlate with employee retention as much as culture indicators like transparency, being valued, and general happiness. And transparency has, by far, the highest correlation with growth, both in terms of headcount and revenue. That one, in particular, should be easy. Being transparent takes a lot less effort than hiding away important info.

Advertisement. Scroll to continue reading.

Good reference

The upshot of this study is pretty straightforward, and it really shouldn’t be news to you at this point: culture matters, big time. But if you’re a numbers person, more stats never hurt.

#CultureStats

Written By

Staff Writer, Natalie Bradford earned her B.A. in English from Cornell University and spends a lot of time convincing herself not to bake MORE brownies. She enjoys cats, cocktails, and good films - preferably together. She is currently working on a collection of short stories.

2 Comments

2 Comments

  1. Pingback: Defining work culture when two different cultures are forced to merge - The American Genius

  2. Pingback: Culture Codes is the guide you need for company culture questions - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Opinion Editorials

(EDITORIAL) It seems that even a post-COVID-19 world will involve remote work, so how can you build and maintain a strong work culture that...

Opinion Editorials

(EDITORIAL) Hustle culture is the highlight of the American workplace culture, but there are both pros and cons to overemployment.

Opinion Editorials

(EDITORIAL) With more and more people joining the LGBTQIA+ community it'd do one well to think about ways to be inclusive at work.

Tech News

(TECHNOLOGY) Meta's Workplace tool is partnering with Microsoft Teams, but has its head leader is bowing out. Here are the takeaways from his departure.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.