The Link between Engagement and Company Culture

link between engagement and company culture shown in rings

Employee Engagement and Company Culture
The link between engagement and company culture is not hard to find.  We define culture as how and why things truly get done in an organization.  We define employee engagement as the strength of the mental and emotional connection employees feel toward their places of work.

Employee engagement is NOT the same thing as happiness, satisfaction, or well-being, and company culture is NOT the same thing as employee engagement.

Why Engagement and Culture Matter
Employees that are engaged, understand their job, and have positive feelings toward their manager are two to four times more productive than other employees.  They are also twice as unlikely to be looking to leave.

Our organizational alignment research found that healthy and aligned company cultures account for 40% of the difference between high and low performing organizations in terms of profitable revenue growth, customer retention, and employee engagement.  In fact, culturally aligned organizations with high-trust return 286% more value to stakeholders than low-trust organizations.

The Link between Engagement and Company Culture
There is a strong link between engagement and company culture.  We believe that there are three levels of a company culture that have a direct link to employee engagement.

Little-C of Culture – Organizational Health
The first level of culture, the Little-C, measures the values and behaviors across an organization. Organizational health can be measured on a good-to-bad scale in terms of employee well-being, ability to function effectively, adaptability, opportunities for growth and utilization of resources. This is where levels of employee engagement fit with company culture.

Every company wants to be healthy and every employee wants to work for a healthy organization.  Organizational health creates the foundation for high performance by actively engaging employees.

Medium-C of Culture – High Performance Environment
The second level of culture measures how to get the most out of your people once you have created high enough levels of organizational health. We believe that it is a leader’s job to create the circumstances to consistently get the most out of their people in a way that is fits with the organization’s core values, behaviors and strategies.

Companies with high performance cultures provide clear performance expectations, use fair methods to measure performance, and create meaningful motivation to perform.It is difficult to create high performance with a disengaged workforce.

Big-C of Culture – Strategic Alignment: The third level of culture measures how aligned your culture is with your business strategy. In our experience, strategies often fail because organizations have a highly fragmented (and often hidden) set of underlying belief systems which determine how to interpret and accomplish strategic goals.

These overly complex and often conflicting sets of beliefs can severely undermine strategic progress.It is difficult to change underlying belief systems unless you have healthy levels of employee engagement.

Four Steps to Achieve Higher Levels of Employee Engagement
Without high levels of organizational health and employee engagement, it is difficult to create a high performing and aligned company culture to help move your company’s strategy forward.  Take these four steps to set the foundation for both people and business success.

1. Identify the Role Engagement and Retention Play in Your People and Business Strategies
Ambiguity is your enemy here. Be crystal clear about the relative importance of engaging and retaining top talent compared to the other strategic initiatives on your plate.  This will set the stage for the next three moves.

2. Focus on Implementation First, Then Assessing Engagement
Ensure that you have the desire, time and ability to take meaningful action based upon any employee engagement survey results. Too often companies jump first to selecting “the right engagement survey” without thinking through the strategy, culture and talent implications of the potential actions required to measurably improve employee engagement.

3. Use an Engagement Survey that Provides Strategic Insight and Enables Immediate Action
While they may be good for a consultant’s bottom line, standardized or abbreviated engagement surveys typically provide leaders less than half the information needed to make decisions and take action. The key is to use a validated and customizable engagement survey that is action-driven rather than curiosity-driven.

4. Make an Employee Engagement and Retention Index a Key Performance Indicator
Your engagement index is the equivalent of your company’s market capitalization for your employees, and it should be used to evaluate all human capital programs looking to improve employee advocacy, discretionary effort and retention.

The Bottom Line
A high performing and aligned company culture go hand in hand with a proactively engaged workforce. Remember…

  • Organizational Health (the Little-C) engages employees. It is the “ticket to play the people game” for any well run organization.
  • Your Performance Environment (the Medium-C) creates the circumstances for your people to thrive and know where they stand.
  • A Purposeful and Aligned Culture (the Big-C) engages the business strategy by focusing on how the strategic work gets done.

This is how you establish the link between engagement and company culture.

If you want to learn about research-backed ways to improve employee engagement, download The Top 10 Most Powerful Ways to Boost Engagement

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I’ve partnered with LSA Global at two companies now, and I consider them a valuable and trusted training and consulting resource. They recommended just the right solution to address our management development needs and have wonderful facilitators that match YuMe’s culture and style of our management team. I would highly recommend LSA Global to any company wanting to deliver quality learning solutions with a valuable learning and development partner.

Maya Paul
HR Director

Congratulations on your pro-activity in establishing this program and developing such an effective New Employee Orientation course.

Farhat Ali
President and Chief Executive Office

Fujitsu

Understanding and conforming to legal compliance was very important to our company. We turned to LSA Global to provide a quality and cost effective way to ensure that we were AB 1825 compliant. Their interactive eLearning program was top-notch. It allowed our managers to learn at their own pace, and on their own time. The program was tailored to include our logo and our internal harassment policies. It was interactive and met all federal and state legal requirements. I would highly recommend LSA Global to any company looking for an efficient and effective and top quality way to train their managers to be in compliance.

Kelly Warren, SPHR
Director, HR & Compliance

“We turned to LSA to help us custom design and deliver a leadership and management development curriculum to help drive performance. They have done an excellent job diagnosing the business situation, designing an approach that fits our culture, and delivering a first class solution.”

Sally Buchannan
VP Human Resources

The Managing Virtual Teams program was extremely valuable. Your consultant/ facilitator’s fundamental knowledge of Synopsys as a company provided an incredible base to build upon while tackling the complications of managing and working with globally distributed teams. My team walked away walked away with highly useful practices and tools. It was an excellent use of our time.

Debra Martucci
Vice President, Information Technology

LSA helped us design and deliver a blended learning solution for our leaders to help drive our growth plans in a way that aligned with our specific culture and values. LSA understood our business, had deep expertise in the content areas, tailored the programs to fit our specific needs, and delivered great results. They constantly strive to deliver business impact and align their solutions with our business initiates, culture, and performance management systems. I highly recommend them to anyone looking to take their leaders to the next level.”

Beth A. Taylor
Vice President of Human Resources

Thoratec

We consider LSA our true business partner in the areas of Learning and Organizational Development. From Strategic Planning to Presentation Skills and Management Training, they continue to provide excellent value and extremely high quality solutions – not just one time events. I recommend them to anyone looking to drive true business results.

Michelle A. Mitchell
Vice President, Worldwide Human Resources

We engaged LSA to design and deliver a 6-month custom executive coaching program for a group of our key leaders. The focus of the program was to help a core group of senior leaders to leverage previous investments in management training, to ensure the engagement and retention of key employees, and to push critical strategic initiatives forward. Even with the high expectations of our senior people, LSA has completely exceeded our expectations. I would recommend them to anyone looking to create and implement a custom coaching methodology using proven tools to drive true change.

Ivan Fukumoto
Senior HR Manager - Staffing, Training, & Development

We have been able to utilize LSA’s extensive network of top-notch resources to leverage our investment in employee development. The result has been the cost effective and highly efficient delivery of quality educational and management training programs.

Steve Feller
Vice President, Human Resources

We contacted LSA to help us with customized management development. LSA worked with me to identify a solution that would meet our exact needs. We decided to start at the top and ran the program for our executive team. It was such a great success that we hope to roll it out companywide. We look forward to a long-term partnership with LSA Global and their team of experts.

Barry L. Byrd, SPHR
Human Resources Manager

LSA’s consultant designed and delivered a half-day team building solution for our recent conference. It included careful customization to integrate the design with our new mission and values. Everyone had fun and identified key issues with our teamwork. Altogether a great program!

Bob Ward
Director of HR

Avon’s success is dependent on strong relationships among our Customers, Representatives, Associates, and outside resources we hire to help us meet our business objectives. We were very pleased with the results from working with LSA Global to design and facilitate a custom program for our events management team. LSA demonstrated responsiveness, flexibility, and an innovative approach to working with us.

Deanna Rudnitsky
Senior Manager, HR Destiny Sales Region

The LSA Global team was very receptive and flexible to our needs every step of the way. Their staff and facilitator demonstrated attention to detail, responsiveness, and professional courtesy. The participants were thrilled with the outcome and rated the communication skills workshop and the facilitator as ‘Excellent’. I’d highly recommend working with the LSA Global team to meet your professional development needs.

John Mastrorilli
FRDP Leader

Intuit

LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

Chris Wells
Vice President, HR and IT

What a personal and professional pleasure it has been to Partner with LSA. They are truly a strategic partner with Wyse. For more than 5 years, LSA has been engaged in delivering various training and development solutions for Wyse, from custom on-site programs targeting specific core competencies, to working individually with clients to build job skills, and offering invaluable services to me and my team as we continue to build our learning programs. LSA’s representatives do more than sell a product, they offer a full service solution: they understand our business, our strategic initiatives, and the needs of our customers.

Jeff Rangel
Director of HR

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