What was once considered a “soft” element of business strategy has become a defining force behind productivity, retention and growth. As Dayforce’s 15th Annual Pulse of Talent report revealed, company culture is no longer just about perks or posters on the wall.
It’s a strategic lever that can either propel an organization forward or quietly erode its foundation, Parvez Rahman of Dayforce recently told HRM Asia.
“Culture is often seen as a ‘fluffy’ issue, often seen as a less important facet of work, unlike efficiency and productivity,” said Rahman, the company’s Asia HR leader. “It’s likely because of the notion that culture is often more sensed than measured, and leaders are pressured to quantify the value of every dollar spent.
“However, many leaders would also agree that employees are the lifeblood of organizations, and they need the right conditions to do their best work. While the effects of culture may not always be seen or traced from action to result, many studies show the effects of poor culture on the organization’s bottom line.”
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The report highlighted significant disparities in how different levels of employees within an organization perceive company culture. For instance, while 84% of executives and 81% of HR leaders believe their organization is actively working to improve its culture, only 49% of employees share that sentiment. This misalignment is evident in such areas as flexibility, access to technology and belonging. These aspects of the lived experience need to align with the company’s stated norms, values and beliefs regarding the employee experience.
“These gaps matter and making the wrong culture investments may not just mean wasting money in a time of slashed or stagnant budgets but also impacting the organization’s bottom line,” Rahman said. “On the other hand, our data shows that improving culture can have positive effects, such as helping employees feel more engaged, experience improved mental health and be more motivated to work harder.”
Meet the promoters—and the detractors
To better understand the nuances of workplace cultures, Dayforce developed a Workplace Culture Index based on the likelihood of employees recommending their company’s culture. Respondents were categorized as “culture promoters,” “passives” or “detractors.”
Culture promoters are engaged, optimistic and in sync with leadership. They are 3.3 times more likely to stay for growth opportunities and 5.2 times more likely to feel comfortable sharing their opinions at work.
“Organizations need to recruit and foster more of these people to find the optimal balance between productivity and employee expectations,” Rahman said.
Culture detractors, meanwhile, feel disconnected and disillusioned. They are 10 times less likely to say they are proud of where they work and 3.3 times less likely to feel trusted by their employer. Interestingly, only 28% of culture detractors are actively job-hunting.
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“When business strategy and culture are misaligned,” Rahman said, “it’s the highly engaged employees who will jump ship, leaving organizations with a growing group of detractors who can bring down morale, productivity and engagement.”
The report also showed that career growth is a powerful retention lever, particularly in the Asia-Pacific region. Culture promoters in Southeast Asia are 33% more likely to have had learning opportunities in the past year. They are also more likely to access self-paced online learning, use AI-powered career recommendations and have a defined learning plan.
“Persistent labor shortages and workplace changes have made learning and development essential,” Rahman said. “But with so many options to deliver learning, it’s hard to know what employers should invest in. Fortunately, the culture promoters can help steer employers to the right path.”
And while AI and new technologies can strengthen culture, the report revealed stark disparities in perception and access. Executives are 41% more likely than employees to say AI will improve culture and 48% more likely to feel confident in its use.
This data reveals a “vast divide in cultural experiences about technology across the ranks,” Rahman said. It also points to the importance of ensuring tech investments are used across the organization. Providing access, communicating technology investments and offering more education in using new tech, such as AI, could help increase the likelihood that employees will be more familiar and comfortable with them, he said. And that could help align the business’s aspirations with EX, which should help build a better culture.
A culture playbook that works
So, what can HR leaders do to bridge these gaps? The report outlined five key areas where organizations can make smart investments to align EX with culture aspirations and drive business performance:
- Learning. Provide employees with access to online and self-paced learning opportunities to support their development.
- Development. Offer clear career paths and utilize AI-powered tools to provide employees with personalized career growth recommendations.
- Communication. Ensure employees are well-informed through a centralized information hub, promoting transparency and trust.
- Onboarding. Enhance the employee experience from the start with effective recruiting and onboarding processes, including self-guided onboarding activities.
- Efficiency. Improve employee efficiency by providing technology and tools, such as self-service HR platforms and mobile apps, to streamline routine tasks.
“It’s clear that organizations need to be intentional about their employee experiences to help prevent negative business outcomes,” Rahman said. “Based on our survey responses, there is no one-size-fits-all solution to the question of culture, but the results of our Workplace Culture Index show that investing in the right technology can help strengthen organizational culture and create more culture promoters.”
Josephine Tan wrote this story for HRM Asia. Find more from this author at HRMAsia.com.
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