When it comes to business — manufacturing, especially — company culture is a great differentiator. A positive culture is what separates the most productive organizations from those that can hardly keep up with demand.
Yet, many manufacturers still struggle in this area. Companies too often allow their culture to fall to the wayside, where productivity declines and business fades away. But how do you know for sure if your company has a negative culture? Here are five ways manufacturers can tell if their company culture needs improvement.
1. Important goals aren't being achieved
The first — perhaps the most obvious — indicator that your culture is in need of a serious facelift is that critical KPIs are slipping. Whether it be due to lack of communication, or that employees aren't engaged with their work, a lack of productivity is often the most blatant sign that change is necessary. Keep an eye on your most significant metrics for success; if you're missing the mark, there may be a bigger issue at play.
2. You struggle to recruit skilled labor
When your culture is negative, word gets around fast. The last thing a manufacturer wants is to have a reputation for bad company culture. Worse yet, it has the potential to scare away potential hires and drive them straight toward competitors.
Given an aging workforce approaching retirement and shortage of skilled workers, recruitment is especially important in manufacturing. If you can't hire new talent, you can't possibly invest in your company's future. This is a telltale sign that company culture is severely lacking.
3. Turnover rates are high
Likewise, a poor company culture is just as much of a detriment to employee retention as it is recruitment. For much the same reason, it's imperative that manufacturers secure the future of their workforce.
Yet, 73% of professionals have left a job because of a bad cultural fit, according to research by Robert Walters Group. If you're not supporting your workforce with a quality work environment and positive culture, you risk losing them.
4. Employees are burning out
According to Gallup, younger workers especially want employers who care about their well-being. When it comes to building a positive company culture, this means taking steps to eliminate burnout. As pressures reach their peak, employees often are at risk of succumbing to stress and anxiety.
Indeed, if a company isn't addressing those concerns, employees will surely burn out. Positive company cultures, on the other hand, address burnout head-on with proactive communication.
By eliminating burnout, manufacturers can demonstrate how much they appreciate their workforce.
5. Workplace pessimism
When the workforce isn't on the same page, discontent begins to brew. Before long, pessimism is spreading throughout the workplace and taking a major toll on employee morale.
Manufacturers need to be mindful of how their workforce is feeling at any given time. If optimism is low, there may be a significant gap between management and employees. Establishing a concrete set of organizational values is one big step in building a positive company culture.