What would happen if two-thirds of your team quit? Could your company survive? In a survey of more than 5,000 workers, Glassdoor found that more than pay and benefits, today’s talent cares about company culture and mission.
As mission-driven companies, nonprofits and social enterprises have an edge in attracting values-minded talent, but what about company culture? Too often, mission-driven companies develop a culture of overwork. With tight budgets, lean operations, and big visions, staff well-being is often sacrificed in the pursuit of mission. Today, many large corporations have started to prioritize mission to respond to the desires of top talent. To thrive in 2019, nonprofits and social enterprises need to step up their culture game.
Turnover is expensive.
The Center for American Progress estimates turnover costs at 20% for mid-range employees and up to 213% for key executives. According to the Glassdoor Mission and Culture Study, 65% of employees said company culture is one of the main reasons they stay in their job. In addition, 71% said they would look for a new job if their company culture were to deteriorate.
If two-thirds of your team were to turnover, could your company afford the upheaval? At 20% (minimum) per employee, the financial cost alone could cripple an organization, not to mention the loss of institutional memory and the impact on team morale.
A generational shift in priorities
In the survey, Glassdoor found that more than half of all respondents prioritize culture over salary. However, when you look at millennials, 65% place culture over salary. As more Baby Boomers retire and Millennials dominate the workforce, it is even more important to make company culture an organizational priority.
The way forward
In the midst of an epidemic of burnout, nonprofits and social enterprises must make company culture and employee well-being a priority.
Invest resources in employees’ professional development, health and well-being. Create employee-led committees to drive culture initiatives. Put policies and practices in place that respect employees’ time and professionalism, like flexible schedules, remote work, clear expectations, regular feedback, and autonomy. Commit to building a culture of genuine care, from the CEO to the most junior staff member.
In conclusion, by investing in company culture, organizations can land – and keep – top talent.