Discouragement, Tension and High Turnover? The Climate of Your Company May Be Toxic

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November 25, 2019
“It takes 20 years to build a reputation and five minutes to ruin it” – Warren Buffett
December 23, 2019

“Culture is more than a word. It’s the operational system of an organization.”
Johnny C. Taylor, President and Executive Director of SHRM

Research performed by SHRM (the Society for Human Resource Management) maintains that a toxic climate is the major cause of turnover and costs companies billions of dollars each year. The study shows that 1 in 5 Americans has left their job in the last 5 years, resulting in a cost of up to $223 billion. Further, 58% of employees who leave their jobs say that their bosses are the main reason for which they end up leaving.

When employees have so many choices in an increasingly qualified and demanding market, merely surviving is no longer enough. Creating a sustainable work environment, where the employees feel engaged, loyal and satisfied, must be the objective of every organization. In the end, efficiency and employee performance are the keys to growth and organizational strength.

Lack of investment in and concern for human factors on the part of the institution influence the satisfaction level of the employee. If the psychological atmosphere that characterizes organizational climate were toxic, it would affect motivation and behavior, and soon employee performance would be compromised, making inviable all your strategies to improve the quality of your products and services.

It’s not easy to determine the organizational climate of a company, because there are several dimensions that can influence it in a negative way and not be obvious, such as: the leadership style adopted by the company; the management model; the salaries and benefits that are provided to the employees in exchange for their work; the internal structure of the organization and the effort put into communication within the company.

To improve the atmosphere of the workplace, it’s important to discover and react to both the positive and negative points that surround your workers in a way to be able to elicit the best from them. You as a manager have several tools at your disposition so that you can work on the organizational climate within the company, such as simple questionnaires, interviews, or even a formal opinion survey of the employees.

Through such measurement, it’s possible to identify what are the individual needs that are not being satisfied, causing demotivation, and what is needed to create a more positive organizational climate for the employees, aligned with the organization’s needs.

The manager can’t let personal situations interfere with the culture of an organization but can and must improve the climate in his department or with his team. If you are the manager and don’t have enough resources available, the following questions could help you make a diagnosis to identify whether the work climate is toxic or positive for your team:

  1. Do I notice a positive disposition and enjoyment in my employee’s work?
  2. Do I make him feel useful and valued for the work he does?
  3. Does he feel positive even when he must do other than what he wants?
  4. Does he take pride in being part of the company?
  5. Is there flexibility, autonomy and freedom of expression without the fear of repression?
  6. What is the employee's degree of privacy within the institution? Is he free to resolve personal matters on the phone, for example?
  7. What is the degree of feeling of community among all?
  8. Do I set the stage for a healthy, respectful, friendly and mutually supportive environment?

After identifying what needs to be improved, think of what you can do to make the climate friendlier and less stressful. It doesn’t need to be a great change or a project; simple things can improve everyone’s mood. As the war for talent continues across sectors and organizations, a positive climate is becoming increasingly important for organizational success.

Remember: Happy people are more productive, and so, research about culture is an investment that offers a great return!

With Connect HR Strategy, your company can stay constantly prepared to conquer your challenges and achieve success in your business market. Solutions are 100% tailored to the current reality of your company.