Strategic HR Guide for SMEs

The culture of your company influences almost every aspect of your business—from your financial performance to your customer satisfaction. That’s why it makes strategic sense to invest time and effort into improving and nurturing your company culture.

In this guide, we’ll explore what company culture is, why it matters, and how you can enhance it to benefit everyone in your organisation.

What is Company Culture?

Company culture is more than just a buzzword. It should be tangible, and even an outsider should be able to sense what it’s like. It encompasses everything about how your business operates—your values, behaviours, goals, and the experiences you offer to both employees and customers.

At its core, company culture is simply how things get done in your workplace.

Let’s consider this: A stranger walks into your office. How do they feel?

• Are they greeted with a smile by staff?
• Does your receptionist offer a drink and make them feel comfortable?

Or…

• Are they left waiting, feeling ignored or uncertain about who to approach?

The first scenario shows a welcoming, warm culture. The second one gives an impression of coldness and discomfort. These small interactions reveal much about your overall company culture.

Why Improving Company Culture Matters

A great company culture can have a profound impact on key business outcomes, such as:

• Financial success
• Employee and customer retention
• Innovation
• Customer satisfaction

When your culture is strong, inclusive, and aligned with your employees’ values, it leads to greater happiness, engagement, and productivity. It also improves your team’s creativity and efficiency, all while helping you attract the best talent.

A positive culture doesn’t just benefit your current team, it also builds your reputation as an employer of choice, which can make recruitment much easier.

Culture Styles: Where Does Your Business Fit?

To improve your company culture, it’s important to first understand where your business stands. Many organisations fall into one or more of the following eight culture styles:

1. Caring: Relationship-driven, supportive, and collaborative, focusing on trust and sincerity.
2. Purposeful: Tolerant and compassionate, with a focus on positive impact and shared ideals.
3. Learning: Innovative, creative, and open-minded, encouraging exploration and experimentation.
4. Enjoyable: Fun, light-hearted, and spontaneous, with a focus on excitement and humour.
5. Results-focused: Goal-oriented, performance-driven, with an emphasis on achievement and merit.
6. Authoritarian: Competitive, control-driven, with structured leadership and clear authority.
7. Safety-focused: Risk-conscious, predictable, and secure, with a focus on detailed planning and preparedness.
8. Orderly: Respectful, structured, and consistent, with a focus on rules and procedures.

While businesses can combine different styles, it’s important to be mindful of conflicting styles. For instance, blending Safety-focused and Learning styles can create a confusing and counterproductive environment.

How to Improve Your Business’s Culture

Improving your company culture doesn’t happen overnight, but here are some key steps to help you get started:

1. Understand Your Current Culture
   Assess your current culture by gathering feedback from employees. Observe behaviours, and pinpoint areas where your culture excels and where it could improve.

2. Define Your Ideal Culture
   Think about the values, behaviours, and goals that you want to prioritise. Which cultural styles align with your company’s vision?

3. Create a Manifesto
   Write down your values, goals, and expectations in a manifesto that’s shared throughout the organisation. Use it to guide hiring decisions and to maintain alignment across teams.

4. Implement Supportive Policies
   Promote employee well-being with policies like flexible working options, professional development opportunities, team-building activities, and community involvement.

5. Reinforce Positive Behaviours
   Recognise and reward actions that align with your desired culture. Celebrate milestones, achievements, and ensure that leadership sets the right example.

Need Help Improving Your Culture?

Improving company culture can feel daunting, especially if it’s your first time tackling it head-on. Whether you want guidance on where to start, or simply need support in gathering feedback and assessing your culture, we’re here to help.

Reach out to us, and let’s start a conversation about how we can support you in building a better company culture.

You can call us directly on 01243 – 967961 or email [email protected]

Please stay connected with us on our website www.starfishpeople.com for more updates, insights, and exciting developments in the world of HR!