How Company Culture Shapes Employee Motivation (& Other Tips for Improving Performance)

Having a strong company culture is critical for the success of the workplace as a whole. In fact, a report by TinyPulse found that employees who don’t feel recognized are 21.5% more likely to quit their jobs and look for another employer where they can feel more appreciated.

However, the importance of company culture doesn’t only stop at retaining your top talents It can also have a massive impact on your employees’ performance.

If you want to know how company culture shapes employee motivation and inspires them to innovate, this guide is for you.

Understanding the connection between workplace culture and employee motivation

While many business leaders and executives are often concerned about employee satisfaction, it’s technically not the key to achieving results and reaching goals.

While it helps to have a satisfied employee, you also need to make sure that your employees are motivated to give their best, and that’s where company culture comes into play.

A good company culture that emphasizes the appreciation of employees’ achievements and makes them feel supported will also motivate them to perform.

In the study, employees were compensated based on the number of images they analyzed.

When given their task, one group was not given context; one group was told their images would be discarded after review, and another was told they were labeling tumor cells for medical researchers.

What researchers found was that the latter group (“meaning group”) earned 10% less than the “discard” group because they spent more time analyzing each image.

However, their quality of work was also higher than the “discard” group because the impact of their work mattered. Reshaping the motivation of the workers resulted in better performance. 

Benefits of a motivated workforce

Having a motivated workforce comes with a variety of advantages, including:

1. Improved Productivity and Innovation

Employees who are motivated are driven by their sincere passion more than anything. For that reason, it’s natural for them to have a higher level of productivity.

These employees will also show a higher drive to solve problems and innovate to stand out since they know their efforts are appreciated.

2. Lower Turnover Rate and Better Employee Retention

A poor organizational culture where workers feel under-appreciated is one of the main reasons many employees leave their jobs.

3. Attracting Better Talent Through Referrals

Retaining your top talent isn’t the only advantage you can get from fostering a healthy culture in the workplace.

Motivated employees are also more likely to refer other talent to your company to have better-quality teams capable of achieving business goals.

4. Better Company Image and Brand Recognition

In today’s world, sharing experiences online, whether positive or negative, is quite common. 

Almost anyone can anonymously add reviews of their experience while working at your company, and there are tons of dedicated sites for that. 

A better work culture will give your company a better image to the public, which can boost your reputation and attract high-value customers.

How to tell if your company’s culture is motivating employees

Employee motivation is fairly easy to notice, as it greatly impacts the workplace. Here are some of the most obvious signs that you have a robust corporate culture that is encouraging and motivating your employees:

Noticeable enthusiasm and increased productivity

The first and easiest sign that employees are motivated is the active vibe of enthusiasm around the workplace, which usually comes with greater productivity.

Higher talent retention

Employees who are motivated are much less likely to leave their job. In fact, many job seekers are willing to accept a slight pay cut if they’re offered a job in a company with a positive culture.

Taking initiative

A motivated employee is willing to take the initiative because they’re aligned with the values and goals of the company.

Supportive work environment

This is a natural by-product of enthusiasm, where employees are always open to giving feedback and supporting each other toward achieving their goals.

Better communication

A healthy workplace culture will see a fluid network of communication among all employees with minimal conflicts since everyone is familiar with the goals and values of the company, which facilitates cooperation on projects for better results.

Seeking continuous feedback

Motivated employees are always open to feedback, whether it’s positive or negative, in order to improve their skills and work on their shortcomings.

How can you use/change your company culture to motivate employees and increase performance?

Now that you know more about the signs of motivated employees, here’s how to use your company culture to achieve these results:

1. Identify clear goals and core values

By setting clear goals and company core values, your team will be able to work toward achieving those goals. Additionally, your employees are able to align their own goals to match those values.

2. Start from the recruitment process

In order to make it easier for your team members to stick to your core values and goals, you have to start from the recruitment process. 

One of the benefits of having a well-established company culture is that you’ll be able to pick those employees whose goals and values align naturally with yours.

3. Give each employee specific responsibilities 

Having unclear responsibilities can make it harder for your team members to understand and align with your company’s cultures and core values, which might drive them to leave their job. 

On the other hand, employees are up to 23% more likely to stay in their job if their managers clearly explain their roles and responsibilities.

4. Involve employees in the decision-making process

One of the easiest ways to encourage teamwork and keep your employees engaged and more familiar with the workflow is by involving them in the decision-making process. 

5. Celebrate achievements and career highlights

One of the best ways to retain your employees and encourage them to give out their best is by making them feel appreciated. 

In fact, when a sample of employees was asked, “What can employers do to improve employee engagement and increase workplace performance?” around 58% of respondents mentioned recognition of achievements as the main answer.

6. Keep track of your employees’ satisfaction and feedback

Staying in touch with your employees is a huge step toward increasing productivity and performance in the workplace.

If employees can share their feedback, it will encourage them to be more proactive and ready to take initiative when asked to. 

Elements of effective high-performing company culture

Several elements of organizational culture can drive high performance, employee development, and productivity among employees. Here are some factors that affect culture:

What leaders should do for greater performance success

People work harder when they feel their work makes a difference. However, a motivated employee willing to give 100% requires an equally motivated leader. 

Here are some essential tips that can help leaders generate higher levels of performance and success in the workplace:

Culture considerations for multicultural or global organizations

Building a company culture in a global organization that includes employees of different ethnicities and backgrounds can be tricky. 

Here are some essential considerations that you need to keep in mind to foster an inclusive environment and a supportive company culture:

FAQs

Wrap Up

There you have it! A brief guide that shows you how company culture shapes employee motivation and impacts their professional careers!

Having a solid organizational culture in your workplace that supports and recognizes its employees has a massive impact on the performance levels of the whole team.

Additionally, an appreciated employee is always motivated to give their best when it comes to innovation and problem-solving.