Connect with us

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.

Published

on

apprenticeships

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.

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.

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

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.

Business Entrepreneur

Is this normal (you wonder about your business)?

(ENTREPRENEURIALISM) It can be lonely not being able to openly ask potentially embarrassing questions about your business – there’s a way to do it anonymously…

Published

on

facebook

Entrepreneurialism is wildly rewarding – you are fully in control of the direction of your company, and you’re solving the world’s problems. But it’s also isolating when you’re not sure if what you’re experiencing is normal.

Sure, there’s Google, news networks (like ours), and professional connections to help you navigate, but sometimes you just want to know if something simple you’re seeing is normal.

Is Instagram Stories really where it’s at? Probably not if you’re a consultant.

Is it normal for an employee to attempt to re-negotiate their salary on their first day? Nope, but how do you keep the desirable employee without being bullied into new terms?

Do all entrepreneurs spend their first year in business as exhausted as a new parent? Sometimes.

You have questions, and together, we can share our experiences.

We have a brand new Facebook Group that is already wildly engaging, active, and you’d be amazed at how selflessly helpful people are – and we invite you to be one of them.

Want to anonymously ask a question about something you’re unsure is normal or not?

Click here to submit your question, and we’ll select as many as possible to discuss in the Facebook Group!

Continue Reading

Business Entrepreneur

Amazon on a collision course with politicians as they strengthen their monopoly

(BUSINESS) E-commerce has come a long way in the last decade, specifically led by Amazon, but are their controlling ways putting them on a collision course with regulators?

Published

on

amazon

In March, Amazon stopped replenishing weekly purchase orders for tens of thousands of vendors in a move that has stirred up some trouble. The tech giant has once flexed its power over first-party sellers over their platform. And it’s not the first time.

Amazon originally sent out to vendors as an automated message citing the hold up in orders as a technical glitch. The following day, vendors were told the change was permanent. The affected vendors were categorized as making $10 million or less in sales volume per year and not having managers at Amazon. Vendors selling specialized goods that were difficult to ship were also a factor.

The effects can have remarkable effects on the market as Amazon’s algorithms decide who is able to sell what to whom via their near-ubiquitous platform. According to John Ghiorso, the CEO of Orca Pacific, an Amazon agency for consultation and manufacturers representatives, the decision is driven by financial data such as total revenue, profitability, and catalog size.

In a response from an Amazon spokesperson, the change was made in order to improve value, convenience, and selection for customers. The mass termination of purchase orders and the delayed response from Amazon herald the transition to the One Vendor system, putting vendors in an exclusive relationship with Amazon. This system will merge the current Seller Central and Vendor Central.

Amazon’s message is loud and clear: they will do what’s in their best interest to mitigate the market for their convenience. One may be reminded of the anti-trust lawsuit against Microsoft in 2001.

The lack of warning didn’t do them any favors either.

While smaller businesses need to change for Amazon’s program, first-party business will revolve around larger brands like Nike with whom Amazon is maintaining a relationship.

Despite the streamlined platform Amazon is going for, the company wields power over vendors and customers alike. Capitalism is one thing, but monopolies are a whole other ball game, and politicians are finally paying attention.

Continue Reading

Business Entrepreneur

Culture Codes is the guide you need for company culture questions

(BUSINESS ENTREPRENEUR) One of the biggest sellers of a company to a prospective employee or customer is their culture. Culture Codes has compiled some the biggest companies cultures in convenient decks for you to study and align with.

Published

on

culture codes

Organizational culture is a hot button of conversation. While a variety of definitions exist, one way of defining Culture is the way businesses exist – a summary of values, rituals, and organizational mythology that helps employees make sense of the organization they work in.

Organizational cultures are often reflected in Mission, Vision, and Value statements of organizations.

What many entrepreneurs or new organization struggle with as well, is how to create a culture from the ground up. What kinds of statements and values do they advocate? What are areas of focus? Who are our competitors and what can we do to create a service, product, or quality advantage?

Building a strong culture can be challenging, but a good place to start is looking at the best cultures around.

A new resource by Tettra, Culture Codes, has everything you could want to know on different companies their cultures available for you to study up.

Over 40 companies employing over 280,000 employees have created culture decks and collected core values and mission statements. Companies like Spotify, Netflix, LinkedIn, and NASA have all contributed information.

This information is great for young companies or entrepreneurs to start building a schema about what kind of culture they want to create.

Or existing established companies can look towards peers and competitors and help decide what statements they want to engage culture change on.

For job seekers, Tettra can help potential employees gauge if they are a fit for an organization, or discover that maybe an organization they dream about working for has a culture they may not jive with. And perhaps most valuably, transparently showing off your culture and allowing it to be compared means that organizations can better compete in the talent market.

Recruiters should be obsessed with talking about culture – because it keeps people in the door.

The reasons why people leave employment: work/ life balance, poor treatment, lack of training, or relationship issues with a supervisor or boss; in many ways are a by-product of organizational culture. If you want to compete in the talent market, make culture a selling point and show it off in everything you do.

Even consumer’s benefit from learning about an organization’s culture – values that indicate a commitment to excellence in ethics make consumers feel good about supporting an organization.

It pays to have a good culture. I encourage you to head over to tetra.co/culture-codes and see how companies like Etsy are keeping it real, every day.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

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

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!