Research

Clear purpose, good hiring can build company culture

Culture is incredibly important. For major career choices, many top candidates may take a lower-paying position for one at a company whose culture fits his or her lifestyle and values.

2014-08-18

By Sidnee Peck Director, Center for Entrepreneurship Question: I know that building company culture is important, but I'm not really sure how to do it. Answer: Company culture is incredibly important. For major career choices, many candidates may take a lower-paying position for one that fits his or her lifestyle, work style and attitude. Employees are likely to stay with a company longer if they enjoy the environment and colleagues. Companies such as Zappos recognize the significant cost of onboarding and retaining an employee, so they offer new customer-service employees several thousand dollars to quit early on if they aren't dedicated and happy. We cannot all have this luxury, but we can take the time to invest in the creation of our culture, communicate it, and live it. Purpose. Much of your culture starts with the "why" behind your business. Take 20 minutes and watch the TED.com video with Simon Sinek called "How Great Leaders Inspire Action," and think about your "why." Knowing and communicating your company's core purpose and values can help you find and keep the right employees and create an environment that is positively supportive of your mission. Beyond communicating it, you also need to live it daily. The behaviors of leadership speak louder than any rah-rah quarterly update. If employees see you truly passionate about the purpose behind the company, then they are more likely to be inspired and feel the same. If they can see that all decisions the company is making (popular and unpopular alike) are aligned with the company purpose, then they will trust you and invest more of themselves. Hiring and firing. Culture starts and ends with the people who work for the company. Hiring often happens in a rush because you need someone to fill a gap, but take the time to really think through the role and the type of person who would be most successful in it. Onboarding, training and retention efforts all cost money. If you can hire less because you are hiring right, then not only will your bottom line improve, but also the culture will strengthen. The interview process should include an assessment of competency and capabilities, as well as an exploration of getting to know the candidates a little better. Find out what interests them in their free time, and make sure they meet as many people on the team as possible. If you've taken these steps, and you still find that you've hired someone who does not fit or is even toxic to the culture, then be diligent about firing. You know who needs to go. Don't hesitate. Incentives. Yes, employees will follow your lead, but they also will do that for which they are rewarded. Take a look at the way you incentivize and reward, and ensure that is in line with the behaviors you would like to see. If you want to have a culture of trust, then empower your employees to work how and where they want. Measure them on their results, not the hours they sit at their desks. If you want employees who take initiative, then give them opportunities to try new things and learn from mistakes (not be punished or fired). If you want to see innovation, provide time and resources and a chance to test out new things to see if they will work. First published in The Arizona Republic, August 18, 2014.

Entrepreneurship Management