How to Build a Company Culture Where People Want to Work

"People leave managers, not companies." This is perhaps the most quoted observation by consultant and motivational speaker Marcus Buckingham. Studies by innumerable business analysts and researchers elicit similar conclusions: It's rarely the day-to-day grind pushing executives and employees to jump ship; it's the work environment.

The truth is, no amount of money can long hold the interest ― or allegiance ― of someone who consistently feels bullied, demeaned, or ignored on the job. On the other hand, when people feel valued, empowered, and heard, they tend to stick around, even if the remuneration is less than stellar. To put it even more simply: "People like to work where they like to work."

So, what are the elements of a positive business culture? What must managers at all levels focus on to cultivate loyalty and maximize the contributions of workers? To answer this query, here are eight critical things every company should do to attract top talent while minimizing turnover and promoting innovation:

1.   Demand honesty from the top down.

A hallmark of a healthy company culture is trust in leadership. Trust can never be demanded; it can only be earned. And to earn trust, leadership must always be honest with employees. A commitment to veracity may be found when words are backed by deeds. When promises are kept. Yes, this also means leadership must possess the courage to share the good news and the bad.

2.   Acknowledge individual contributions.

People want to be recognized. They want to be seen and know what they do is valued — not just by their direct supervisors, but by the organization as a whole. Simple ways companies can achieve this is through the publication of company newsletters, staging of periodic awards ceremonies, or just having managers take the team out to the occasional lunch.

3.   Allow employees to "Unplug."

Recent telecommunications breakthroughs have allowed companies to turn themselves into the equivalent of 21st century sweatshops, forcing workers into the unfortunate position of being "on-call" 24 hours a day, seven days a week, including vacation days. While it's great to be able to contact co-workers for needed input during off-hours, this capability is too often abused, making workers feel like their personal space has been invaded. Worse, it engenders employee suspicions that their bosses see them as mere robots to be called to perform on command. Companies must give their employees time to unplug from workplace responsibilities, establishing clear boundaries as to when and where workplace communications are permitted.

4.   Give employees the opportunity to fail.

Thomas Edison famously insisted that in the years it took him to create the first commercially successful incandescent light bulb, he never experienced a single failure. "I just found 10,000 ways that don't work," he declared. This willingness to see failures as necessary steppingstones to innovation should be part of any company culture. Yes, employees must be accountable for their failures, but accountable in that they should be able to draw value, lessons, and new ideas from experiences. Personnel need the freedom to experiment even if their efforts don't always result in immediate success. Or as the late 19th century Scottish author and government reformer Samuel Smiles put it, "We learn wisdom from failure much more than from success."

5.   Instill a sense of ownership and accomplishment.

Employees who believe they have a personal stake in a company's triumphs are far more likely to give their full effort and attention to the challenges they face. Such a sense may be cultivated via an “ownership” or “responsibility” culture in which credit for work is individually acknowledged. Likewise, kudos can’t just be reserved for the rank. Instead, back-patting must flow far and wide — not just to top executives or team leaders, but to the file who (often) do the actual legwork.

6.   Imbue work with a sense of purpose. 

Perhaps the most enduring question in all of human history is "What is the Meaning of Life?" People require meaning to give their lives direction and purpose. Or as the German philosopher Friedrich Nietzsche once said, “He who has a why can to live can bear almost any how.” As to be expected, the same notion applies to work. Leadership must ensure employees have a clear sense of purpose, that they feel their contributions are important not only to the company, but to the world as a whole. Employees need to understand the role they play in the company’s success, as well as the "why" of their company's existence. (Beyond merely making money.) This need for "purpose" is particularly strong among the millennial generation – now the largest percentage of the workforce – which tends to be motivated more by a need to make a difference than the pursuit of financial security.

7.   Offer flexible schedules.

No less an expert in innovation than Microsoft founder Bill Gates has stated modern companies need to offer flexible schedules to attract and retain quality employees. People possess different internal rhythms, different working styles, and any variety of outside responsibilities. Rather than trying to work their employees like machines in a one-size-fits-all environment, companies should allow employees to work to their strengths on schedules befitting their individual temperaments, even if this means working from home or outside of traditional business hours.

8. Show Concern for Workers' Well-Being.

Companies often liken themselves to families. Their cultures emphasize loyalty, unity, and sacrifice. But real family cohesion also relies on a deep concern for the well-being of fellow family members. There is concern not only for each member's financial health, but also their physical, emotional, spiritual, and social welfare. A recent Willis Towers Watson Survey reported that 86 percent of senior executives believe they prioritize their employees' well-being. However, only 50 percent of the employees themselves believe their leaders genuinely possess such concerns. To attract top people to your company, it's important that you create a culture of warmth, support, and benevolence that includes employees at all levels.

As a leadership, culture, and compensation consultant, I have spent years cultivating these beliefs as well as developing a practical toolkit for companies wishing to hone ecosystems promoting onboarding and low turnover. Some of the services I offer include:

1.   A culture audit to assess the status quo state of affairs.

2.   Working with management to define the preferred culture.

3.   An assessment to identify the individuals willing and able to support the desired culture.

4.   Using the same assessment to identify specific culture elements to keep employees engaged.

5.   Collaborating with leadership to create and execute specific steps to build a place where people want to work.

For more information on how my team and I can help your business create a culture that will stand the test of time, please email me @ laura@conoverconsulting.com. (You can also read a recent article in Forbes profiling me and my thoughts on this topic.) I look forward to developing the most constructive workplace environment supporting your company’s vision.