August 02, 2022 by Andrea Rajic

Essential Company Culture Statistics for 2022

Essential Company Culture Statistics for 2022

In just a few years, positive workplace culture has evolved from a nice-to-have to an absolute must when t comes to engaging employees, retaining them, and improving their performance.

In the era of distributed and remote work, companies that maintain their work culture see higher employee well-being and satisfaction and find it easier to attract top talent.

We made this list of essential company culture statistics for 2022 to highlight what employees want from their workplace culture and how companies can use it to gain a competitive advantage.

The rise of company culture

Since the pandemic gave rise to remote and hybrid work models, culture seems to have gained importance. So much so that 66% of C-suite executives say corporate culture is more important for performance than their company's operating model.

This isn’t a surprising statistic — the impact of the work environment on happiness, satisfaction, and performance of employees increases is well known. What has changed in the past three years is the attitude companies have towards culture. When the workplace is distributed, culture becomes the best way to highlight belonging for employees.

Remote work company culture

This shift in thinking has led to 42% of employees saying their company culture has improved over the past two years, and 68% of them describing their organization’s culture as one of respect, inclusiveness, and belonging.

The importance of culture for employees is evident: their experience and satisfaction grow in positive work environments. But a strong company culture benefits employers, too, especially in the wake of The Great Resignation. As 63% of US companies say employee retention is more challenging than attracting new talent, culture can contribute to employee satisfaction, lower turnover rates, and increase business success.

Culture as an opportunity

So what can culture change bring to your company? Well, according to 81% of respondents, strong company culture is a source of competitive advantage. Add to that the fact that 48% of respondents who say they have a unique company culture report they see an increase in revenue and business outcomes, and it becomes apparent how culture affects company success.

Company culture vs operating model

For distributed companies, the impact is even more significant, as remote employees are more likely to report a positive company culture than office-based employees (65% vs. 73%).

If culture has a direct impact on employee wellness, retention, and engagement, as well as the company bottom line, how do People teams and hiring managers exude and nurture culture?

A surprising number from a recent survey says that a whopping 49% of HR leaders say they don't have an explicit future of work strategy, and 26% of companies don’t gather feedback from employees to understand their needs. This shows us that a significant number of companies still don’t think their company’s mission, culture, and core values are important enough to be part of decision-making.

On a positive note, metrics like these leave space for improvement, as it’s never late to start designing a great company culture. If you’re a People leader in one of these companies, borrow a page from companies that focus on culture; 75% of culture-centric organizations agree that the design of their HR programs and initiatives intends to help shape their organizational culture.

So what are the top 3 challenges People leaders face when leading initiatives to create, change, or promote company culture?

  • Lack of buy-in from senior leaders (28%)
  • Statements inconsistent with practices on the ground (28%)
  • Insufficient training and support for managers and employees (27%)

In other words, showcasing pictures of your office on social media doesn’t constitute culture — practices, values, and behaviors do. And if you’re unsure how to accommodate employees best and design a culture they will love, use feedback methods like employee surveys to find out!

Remote work connecting with team

Workplace culture and employee engagement

Employee engagement is the new productivity. Engaged employees are happier, more loyal, and better at their jobs. And how does culture tie with engagement? Employees who say their workforce culture is positive are 3.8X more likely to be engaged. Conversely, disengaged employees are 2.6X more likely to leave their company for a better cultural fit.

For most employees - 53% of them - culture is experienced most strongly through recognition of their work and celebrations like birthdays, anniversaries, and company milestones. Not all is perfect, however, as 44% of employees who worked from home in the past two years say it has become harder to connect with their coworkers. And it’s not just about coworkers: 64% of employees report they need a way to ask questions of industry peers and connect with them.

The most effective way People teams can promote culture and increase engagement is by using continuous performance tools. In some of the latest surveys, data suggests that 67% of companies use these tools (like 360 feedback, goal tracking, and recognition platforms) to promote their culture. Still, only 47% of them use people analytics dashboards and visualizations.

Facilitating culture in the distributed workplace

Finally, what can your company do to facilitate and nurture culture in a distributed workplace? Studies show that 64% of the global workforce would rather quit than return to the office full-time, and the demand for flexibility isn’t going away anytime soon.

People teams should design a culture that focuses on communication, transparency, trust, and belonging to meet employees where they are. For example, supporting employees’ mental health, wellness, and satisfaction lowers burnout and improves their work-life balance.

In a distributed workplace, nurturing engagement also comes in designing purposeful in-person experiences, creating connections, and fostering a sense of belonging. But great company culture isn't just perks - it’s transparency, openness, and leadership that sees the value of employee experience. After all, 75% of employees believe managers create and shape the company culture, so it seems culture isn’t top-down but a collective effort led by the People team and adopted by every employee.

Future of work HR

Foster connections in your remote team

Cater to employees’ needs and give them flexibility without burdening your workload. Provide workspaces, set budgets and policies, and track usage and trends to stay in the loop.

Request a demo with Gable today.

Sources:

Andrea
Written By

Andrea Rajic



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