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Measuring Company Culture Cheat Sheet

By Emily Rich


How to measure company culture?

Measuring company culture is essential for understanding the processes of its internal and external processes. When you measure company culture and have a better understanding of how your culture influences employee experiences, you can take appropriate action to improve corporate culture and business success using different tools.

Take a look at the following three steps to understand workplace culture. Starting with employee feedback is a good indicator of employee health and the company's culture.

Employee surveys are designed to understand employee perceptions of how the job is done and of the company, to find out how common behaviours affect people, and how employees regard the organization's mission and company culture. Once you collect that information, you can analyze the outcome.

However, surveys rely on employees giving honest feedback, which does not always happen in these situations.


HR/Workforce KPIs (Key Performance Indicators)

Monitoring HR KPIs is critical for understanding important changes in company culture, both positive and negative. The good news is that much of this information can easily be found in an HRIS system.

The KPIs include turnover rate, rate of absenteeism, and other key cultural shifts and actionable insights. A further important indicator is the EPS scores, which are available through the surveys listed below.

This measurement will show how much you're doing as a culture. Its most important example is based on behavior data that summarizes activities performed at work. ENPS falls under the Employees' Emotions category. It will provide indicators of the employee experience and insights into building strong connections and success.


No two workplace cultures are the same

It is impossible to define each organization's culture by just using some generic words, and other organizations will have a very different company culture. A company that excels in describing a culture that reflects the experience it wants for people is important since this helps new hires understand the company and whether it would be a good cultural fit for them. Therefore, understanding and defining company culture should be prioritised by hiring managers to attract top talent.


What to measure in your workplace culture?

For a successful workplace, leaders need to focus on employee involvement and employee engagement. Company culture can affect employee engagement negatively, and therefore measuring company culture metrics is an important example of how if your culture strategy focuses on employee engagement, then company culture can easily and quickly be measured. This is a lot more tangible. For assessing company culture or engagement, utilising tools to collect data over a cross section of the company helps to identify common themes in culture data and can be used as a diagnostic tool to identify flight risk of employees. ELEFense can be used for cultural measurement across the entire organization to identify a toxic culture in an ongoing process.

Using software such as ELEFense is more effective than focus groups as many focus groups do not research the correct criteria for understanding company culture, and a focus group requires effort.


What are the key culture metrics to track?

Some business metrics can help to understand cultural issues. Keep an open eye on these metrics for culture development.

Communication

Communication between departments should be straightforward. Employees should feel comfortable expressing opinions, questions and suggestions.

In some cultures, communication is toxic. Listen to the employees understand communication—it's a good way to learn a great deal about their culture.

Referrals

How many referrals employees get from their employer tells you a great deal. The employee who frequently suggests an organization as the perfect work environment will probably value this everyday experience.

It helps to track your culture to find and retain talent.

Turnover

Generally, when a high number of top performers leave for work, they face negative cultural consequences.

Employee daily experiences determine whether an employee will stay or not. Hence turnover rates and retention are important indicators of company culture.

Productivity

An effective company culture motivates workers toward excellence. Your workplace culture will probably hinder employee success.

Keep track of productivity metrics to know how well your culture motivates employees.

Organizational Culture Assessment Instrument (OCAI)

OCAI can help you understand the organizational culture of the organization and how they are different than the ones they're intended for. The tool is developed using the Competing Values Framework, which provides organizations with 100 points divided between four competing values.

These assessments were prepared in collaboration with Robert Quinn. The three rival values correspond in their own way to four types of organizational culture. The organizational culture in organizations may differ from one to another.

This is because the competing values have been mapped to three organizational aspects: internal-external and structural-flexibilities - internal. The OCAI Cultural Profile shows:

Exit surveys

Using an effective exit survey, you will uncover much more about your culture. Conduct a comprehensive study on employee responses when leaving an employer to understand the culture and understand how that culture developed.

However, the disadvantages of using exit interviews are reactionary. When employees are separated from the organization, they won't benefit from the information they give.

Behavioural observation scale

A behavior observation scale can help assess a worker's behavior by measuring the behavior he/she has displayed. The portion of the scale means the employee is ranked by a factor of two.

The tool lets you evaluate a set of desired behaviors representing the organisation's values based on the organizational values of your values, your culture. This approach has been proven to be successful by describing these desired habits in detail.

Business Needs Scorecard (BNS)

Business need scores are a variation of a Balanced Scorecard developed by Kaplan and Norton. It maps organizational cultural currents and desired values through analyzing “Finance and External Stakeholder Relations, Fitness and Culture, and the Social Contributions”.