Identifying problems in organisational culture
Signs of a potentially toxic organisational culture developing include:
- Decreased employee engagement:
Employees often disengage mentally and emotionally before deciding to leave the company physically. If you notice that morale is low, this is your first red flag and might indicate there is something going awry in your company culture. - Resistance to change:
Change can be uncertain for most, but a healthy attitude to change among your workforce is indicative of a good work culture. If change is met with major resistance, it might also be a sign to revisit some cultural fundamentals within your company. - Loss of communication:
The saying “communication is key” has stood the test of time and lack thereof is a common symptom of a poor or toxic business culture. Employees and departments that do not communicate effectively with each other are working in isolation. This could be for fear of being criticised, rejected or personal gain. Whatever the reason it’s a sure red flag and needs to be addressed. - Discrimination and bias:
Any form of discrimination or bias between individuals or teams can lead to much bigger problems. If your culture in any way does not promote inclusivity, or is showing signs of gender, racial or any other discrimination, it’s essential to address it right away.
Causes and proposed solutions
While there may be many reasons for a company culture turning, here are some of the main reasons we have identified and some suggestions about what you can do about them:
- Lack of communication and transparency:
When employees feel they are left in the dark, it can breed mistrust, start rumours and result in disengagement. To counter this, ensure you provide your team with regular updates on the company’s strategy, vision and mission. This will pull your team together and align them with broader company objectives. An open-door policy is also encouraged where employees can voice any concerns they may have without fear of retaliation. Clear communication channels (like Teams, Slack or email) should be put in place and utilised by all. One-on-one communication with managers can also build a strong communication culture. - Micro-management and minimal employee autonomy:
When employees are micromanaged, they can quickly become demotivated. While micro-management may have a place in business in certain scenarios, as an overall culture, it’s a practice that should generally be avoided. Employees should be trusted to do their work or they may begin to question why they were hired in the first place. To reverse or combat a culture of micro-management, empower your employees by assigning meaningful tasks to them with clear direction and trust them to execute it. Another way to cultivate employee autonomy is to provide training and to set clear expectations through a KPI process that includes regular feedback and opportunities for them to communicate their successes. - Unchecked harassment:
A culture that tolerates harassment, whether subtle or overt, erodes trust and creates a toxic work environment. Some ways to address this are through strict policies, training programs and education as well as providing safe communication channels and meaningful support systems. - An overly profit-driven mindset:
Employees that feel part of something bigger and understand their role in achieving business goals (over and above profit) are more motivated. In addition, employees should never be left feeling as if they come second to profit. Make employee wellbeing a part of your strategy and implement real employee wellness initiatives that show your employees that the company is invested in their wellbeing.
In Conclusion
Your company culture affects your entire organisation, including your customers experience of your service and eventually your bottom line. It is therefore in the best interest of everyone involved to create a healthy, tolerant and transparent company culture based on mutual trust and respect.
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