A loyal workforce is worth more than just money. (Shutterstock)
Clearly there is no one-size-fits-all answer to this question. But there are a variety of KPI’s which can be used at just about any company to define the value, in monetary terms, of a healthy company culture.
One of the most basic benefits of a good company culture is an engaged, motivated and successful workforce. You don’t need us to tell you how that will pay off. However, the cost of an unhealthy, unhappy and demotivated workforce is a high attrition rate, aka the ‘Churn’ to those in the hiring business.
The costs of a high turnover include intangibles such as lost knowledge, as well as tangible costs such as training fees, recruitment fees and the expense of unused time and empty seats. These costs can easily be calculated by your HR department (and they probably are, all the time!).
Learn: “The war for talent is over, and the talent won.”
Just by looking at those you’ll soon see how a negatively perceived or bad company culture can cost your business. Therefore, conversely, by building a strong, healthy employer brand and maintaining a good company culture, you’ll stop the ‘churn’, retain valued employees and begin to attract the kind of talented employees your business needs.
Employer of Choice
With an attractive, trusted and stable company culture, you’ll soon find yourself being talked about as an employer of choice among top candidates, who will be coming to YOU for jobs before you’re even hiring. As a preferred employer in the local market, your business will be better positioned to attract, optimise, and retain good employees.
The saving in recruitment drives alone is worth the exercise in branding your organisation.
Infographic: Why employees resign
Added to this is a higher application rate, an improved acceptance ratio, a higher intern conversion ratio, an improved retention rate and a lowered cost per hire. The exact rand value for each will depend on your business, your suppliers, your recruiters, your targeted candidates and more. But the related cost savings and the return on investment are tangible and measurable.
In short: a good company culture will save you money.
The next step…
Invite your employees to review your company, anonymously, on Careers24
Interested in improving your employer brand? To learn more about how to build a good employer brand proposition, browse our advice section or speak to our employer brand coach at firstname.lastname@example.org.