Company Perks Are Not the Same as Company Culture
Rich Baron • March 29, 2024
Perks don't care if your employees are engaged or not
When you think of great company culture, you might envision state-of-the-art campuses with on-premises gyms, ping-pong tables and free catered lunches with a gourmet coffee bar. If this is how you envision good organizational culture, you wouldn't be alone. All these things are nice to have, but do these perks make a strong company culture? The simple answer is no.
The business world has conflated "perks and benefits" with "good company culture," with the assumption that perks are culture. While perks make for a nice bonus, they don’t matter if your employees hate how they feel at work.
Laying the Foundation
While amenities and perks can contribute to a positive work environment, a strong company culture goes beyond these superficial benefits. A truly strong company culture is built on values, beliefs, and behaviors that drive collaboration, innovation, and employee satisfaction. In short, good culture starts with a strong foundation. It is about fostering a sense of belonging, trust, and shared purpose among employees.
Some key components of a strong company culture include:
1. Clear values and mission:
A strong company culture is rooted in a clearly defined set of values and a compelling mission that employees can rally behind. This helps to create a sense of purpose and direction for everyone in the organization.
2. Employee engagement:
A strong company culture prioritizes employee engagement and feedback. It creates opportunities for employees to voice their opinions, contribute ideas, and participate in decision-making processes.
3. Transparent communication:
Open and honest communication is essential for a strong company culture. Transparent communication helps to build trust, foster collaboration, and ensure that everyone is on the same page.
4. Continuous learning and development:
A strong company culture values ongoing learning and development. It provides opportunities for employees to grow and develop their skills, and encourages a culture of continuous improvement.
5. Diversity and inclusion:
A strong company culture celebrates diversity and fosters an inclusive environment where employees from all backgrounds feel valued and respected.
Ultimately, a strong company culture is about creating a positive work environment where employees feel engaged, motivated, and supported. Culture is truly about the mindsets that are ingrained in the organization. It’s about how employees treat each other, the level of trust and communication within the company, and the overall sense of belonging and purpose. Company culture is what ultimately drives employee satisfaction, engagement, and productivity.
Some companies have a reputation for offering over-the-top perks in a bid to stand out from the competition and attract talent. While a game room for your employees or nap pods throughout the office may attract attention, employees are looking for perks that really matter to them and reflect their values. Listening to your employees can help your organization determine what they truly want from you.
Perks Done Right
Perks can help culture, and it's worth investing in the key perks that matter to employees, such as their health and the ability to be themselves at work. Wellbeing at work is about optimizing both mental and physical health, making your employees feel well-rounded and refreshed.
One such company that has truly excelled in the use of perks for the wellbeing of their employees is UFirst Credit Union in Salt Lake City, Utah. A colleague of mine, Dr. Mike Smith, and I had the recent privilege of working with CEO, Jack Buttars, and his executive team. All of whom have been with UFirst CU for several years. Each of them recounted how in their early years with the organization, they did not know from day to day if they would still have a job. One of the team even kept a cardboard box in their office so they could pack up their belongings in a hurry. The culture was toxic, the leadership was toxic, and there was a level of uncertainty and fear about their futures.
Because of their individual experience with the early years with this organization, they have collectively dedicated a significant amount of time to ensure the culture is one that is free from the concerns and fears that they personally experienced. After meeting with several of the employees, I can attest that the culture is one of engaged, dedicated people. As we toured the corporate office with Jack, each employee was greeted by name, and in turn, Jack was greeted with genuine enthusiasm as well. Not with the fear, or anxiety that I have witnessed in other organizations, but one of genuine respect and appreciation.
Now let’s talk about the perks and amenities at UFirst CU. I have toured several companies and very few have the perks, benefits, and amenities that UFirst has invested in. Each of the areas that we were shown had been developed and created around the wellbeing of their employees. Workspaces, break areas, healthy snack and food options, places to gather, the list goes on. UFirst CU is truly an example of a culture first organization where the perks have been put in place for their employees, not in lieu of culture, but a part of it designed for the well-being of the employees.
So, what types of perks can be beneficial to an already well-established culture. The following is a short list of perks and benefits that can truly sustain employee wellbeing:
1. Celebrating achievements:
Recognizing and celebrating individual and team accomplishments, milestones, and successes can boost morale and create a culture of appreciation and recognition. Acknowledging employees' hard work and accomplishments can boost morale and motivation. This can be through verbal praise, awards, or even simple gestures like a thank you note.
2. Flexible work arrangements:
Offering flexibility in work hours or remote work options can help employees manage their work-life balance better, leading to increased satisfaction and morale.
3. Professional development opportunities:
Providing employees with opportunities for learning and growth can make them feel valued and invested in their careers, boosting morale. This can include training programs, seminars, workshops, or even educational reimbursements.
4. Wellness programs:
Implementing wellness initiatives like fitness classes, mental health resources, or healthy snacks in the office can improve employees' overall well-being and morale.
5. Team building activities:
Organizing team-building events can strengthen relationships among coworkers, improve communication, and create a more positive work environment.
6. Incentives and bonuses:
Offering performance-based bonuses or incentives can motivate employees to work harder and achieve their goals, ultimately boosting morale.
7. Supportive management:
Having supportive and approachable managers who listen to and appreciate their employees can make a significant impact on morale. Open communication and a positive working relationship between managers and their team members can create a more positive work culture.
8. Opportunities for advancement:
Providing clear paths for career progression and growth within the organization can motivate employees to work towards their goals and increase morale.
9. Work-life balance initiatives:
Offering benefits such as paid time off, parental leave, or flexible scheduling can help employees manage their personal and professional lives, leading to higher morale.
10. Employee appreciation events:
Hosting events or activities to show appreciation for employees, such as a company picnic, holiday party, or a team outing, can boost morale and strengthen the sense of belonging within the organization.
To truly build a positive company culture, leaders must focus on fostering open communication, providing opportunities for growth and development, recognizing great talent, celebrating achievements, and creating a supportive and empathetic work environment. These elements are essential for creating a culture where employees feel valued, respected, and motivated to do their best work.
Wrapping Up
While perks and benefits can enhance the employee experience, they are not the foundation of a strong company culture. To create a positive and thriving work environment, organizations must prioritize building a culture that is based on trust, respect, and genuine care for their employees.
By focusing on creating a positive company culture, organizations can cultivate a sense of community, loyalty, and engagement among employees. This, in turn, can lead to higher employee retention rates, increased productivity, improved teamwork, and ultimately, greater business success.
So, while perks and benefits are nice to have, they are not the key to building a truly great company culture. However, if the culture is toxic, and the engagement level of the employees is non-existent, the senior team can take turns at the ping-pong table while sipping on the gourmet coffee before deciding who gets to turn the lights off. Think about it!
Are you interested in great organizational culture? Reach out to me here.
About the Author
Rich Baron serves as the Chief Operating Officer and Director of the Global Coaching Project at John Mattone Global, where he also holds the title of Master Certified Intelligent Leadership Executive Coach. With over 30 years of rich experience in cultural transformation, operational leadership, executive roles, and coaching leaders at every level—from emerging talents to seasoned CEOs—Rich has a demonstrated track record of success.
Rich co-hosts "Mainline Executive Coaching ACT," a podcast that is recognized by Feedspot as the leading Executive Coaching Podcast worldwide. The podcast's acclaim is based on an evaluation of numerous factors, including web traffic, social media followers, and timeliness. It boasts an impressive following in more than 85 countries and over 850 cities globally.
The hiring process is broken. Discover how executive coaching improves leader selection, accelerates performance, and strengthens culture for long-term success.
If the years since the pandemic are any indication of what we can expect in this ever-changing business world, leadership needs to be stronger than ever. With rapid changes in business worldwide, the leadership skills we need are changing. Strong, versatile leaders are needed to face the challenges we will inevitably see - leaders who can adapt, strategize, and motivate their teams through complex situations. However, studies show that organizations and leaders alike are far from prepared to combat these challenges. What Do The Studies Show According to the Bersin by Deloitte report High-Impact Leadership Development , organizations with stronger “leadership maturity” are 11 times more likely to have a high number of leaders who can build talent for competitive advantage. And they’re 7 times more likely to have a high number of leaders who can inspire people to follow them. Unfortunately, the report also found that capable leadership talent is very rare. Only 60% of leaders in organizations show commercial acumen and business judgment; 48% are seen as driving change and innovation; and only 44% build talent for competitive advantage. Regarding rare leadership talent, in a study conducted by Kaiser Leadership Solutions , using a 360-degree instrument called the Leadership Versatility Index, they assessed over 24,000 senior managers from a variety of industries around the world. The results showed that less than 10% of the leaders in this study had the versatility and timing to be effective leaders. That means that more than 21,000 of the leaders studied do not have the versatility and timing to be truly effective in reading and responding to change with a wide repertoire of complementary skills and behaviors. Despite the studies that show that leadership skills and development are lacking, there has been a disturbing trend in organizations cutting L&D budgets and individual leaders putting the brakes on their own development. Or worse yet, ignoring the importance of leadership development altogether. A Short-Sighted Approach This lack of investment in leadership development is a short-sighted approach that ultimately hurts both the individual leaders and the organization. Effective leadership is crucial for the success of any organization, as leaders set the tone for the rest of the team and drive the company toward its goals. Additionally, in today's rapidly changing business landscape, it is more important than ever for leaders to be adaptable, agile, and able to navigate uncertainty and change. Investing in leadership development is key to ensuring that leaders have the skills and knowledge needed to thrive in this environment. Organizations must prioritize leadership development and allocate the necessary resources to support the growth and success of their leaders. By investing in leadership development, organizations can create a culture of continuous learning and improvement, drive innovation and growth, and ultimately, achieve sustainable success in the long run. Without ongoing development and training, leaders can stagnate in their skills and become less effective in their roles. This can lead to decreased employee engagement, lower productivity, and ultimately, a negative impact on the bottom line. Hitting the Pause Button Simply put, businesses and leaders are falling behind in preparing for the upcoming business challenges they will certainly face. This fact was shown in another leadership development survey of almost 18,000 human resource professionals and business leaders from around the world. The findings showed that 83% believe it is critical to the success of their organizations to develop leaders at all levels. Despite this, less than 5% of businesses have integrated leadership development at all levels. According to the Global Leadership Forecast 2021, “fewer than half of leaders feel they are effective in leadership skills that will be most critical for future success. This means that strong, versatile leaders are not being developed and prepared for future business challenges. As an executive coach, the most disturbing trend that I have seen in organizations, and individual leaders alike, is pumping the brakes on leadership development. Many of the excuses I have heard are that the L&D budget was cut, or we plan on revisiting leadership training next year, or my personal favorites, we are too busy to focus on that right now. With all the issues in poor employee retention, lack of leadership pipelines, poor talent selection, toxic bosses, and failing organizational culture (which is a direct result of poor leadership), it is no wonder you don't have the time. More than likely your time is now being spent chasing the tiger by the tail, putting out fires, and trying to keep your head above water. So, a quick question, do you think your excuses will help solve the problems? Or perhaps employing the age-old wisdom that if we just ignore it, it will go away. The trend of cutting L&D budgets has been a concern of employees globally. In February 2023, we featured an episode on our podcast, Mainline Executive Coaching ACT, entitled, "Dear Employees, Your Budget Has Been Cut." It has been downloaded and listened to in over 90 countries and 1000 cities worldwide, and is still one of our top downloaded episodes with continued daily downloads to this date. This goes to show that this is not just a concern for organizations in the United States, but globally as well. Quite frankly, this is an urgent situation that needs to change. Versatility Will Be The Key The need for leadership development is greater than ever. Over the past three years, business dynamics have shifted so dramatically, that the moment to maximize the benefits of strong and equipped leaders is now. Versatility in leadership skills is the master capability for leading in a VUCA world — that is, one characterized by volatility, uncertainty, complexity, and ambiguity. Versatility is, "the ability to read and respond to change with a wide repertoire of complementary skills and behaviors." For instance, some circumstances call for leaders to take charge, force difficult issues, and make tough decisions, while others require leaders to enable, support, and include people. Similarly, organizations sometimes need leaders to focus on their future strategic direction and at other times to focus on day-to-day operations and execution. Versatile leaders can seamlessly move between opposing behaviors. They can step up and make a call just as easily as they can bring people together to make group decisions. They can read the room and adjust their behavior accordingly, from asking questions and listening with an open mind to driving the team to achieve success. They can also envision change in big-picture terms and focus on the tactical details of implementing change. Versatile leaders can read the business, from playing out the chessboard five moves ahead to making the next move swiftly and with precision. Focusing on the Future It is time to stop pausing or ignoring leadership development altogether, or worse, simply putting someone in a leadership role because they are strong individual contributors in their jobs. The ripple effects of poor leadership have resulted in skyrocketing turnover rates, poor customer retention, disengaged employees, and high costs associated with replacing the employees who left. To be successful and competitive in the future, developing versatile, strong leaders is imperative. Organizations that value leadership development with a focus on building a strong leadership pipeline full of well-trained, versatile leaders will inevitably see greater innovation, stronger financial performance, highly engaged employees, and strong employee retention. Going forward, organizations and individuals alike need to engage or reengage in leadership development. However, do not make the mistake of bringing back leadership training that the company invested in 10 years ago. Or worse yet, relying on someone in the organization who participated in those programs in the past to take on the task of leadership development today. The days of marathon seminars focused on a particular leadership skill are in the past. Quite frankly, they did not work then, and certainly will not work now. A Training Evolution Leadership training has evolved, and executive coaching is the sturdy bridge that connects individual leadership effectiveness with outstanding organizational performance . It can help organizations attract and retain exceptional leaders and help executive teams to improve their performance. In addition, online coaching platforms that feature ongoing, bite-sized, dynamic, and hybrid training sessions with accompanying implementation tools coupled with one-on-one coaching have proved to be very effective. Intelligent Leadership Online Academy (ILOA) which was created during the pandemic by the world's top executive coach, John Mattone is one such platform that is trusted and respected by the top executives and technologists at some of the world's top companies. Wrapping Up Today's leaders need more proficiency than ever before. No one knows what our disruptive world will throw at leaders next. However, if the past three years are any indication of what lies ahead, organizations and individuals must be prepared to face those challenges. Those organizations with strong, versatile leaders who possess a wide and balanced repertoire of complementary competencies, skills, and behaviors, combined with the wisdom to know which one to use in a given situation, are likely to be most effective at leading their people, teams, and organizations through the turbulence. And we know that this meta-competency — versatility — can be learned, coached, and developed. Reach out to me here to find out more about executive coaching, and ILOA. Or schedule time with me here for a discussion on how your future and the future of your organization can look. About the Author Rich Baron serves as the Chief Operating Officer and Director of the Global Coaching Project at John Mattone Global, where he also holds the title of Master Certified Intelligent Leadership Executive Coach. With over 30 years of rich experience in cultural transformation, operational leadership, executive roles, and coaching leaders at every level—from emerging talents to seasoned CEOs—Rich has a demonstrated track record of success. Rich co-hosts "Mainline Executive Coaching ACT," a podcast that is recognized by Feedspot as the leading Executive Coaching Podcast worldwide. The podcast's acclaim is based on an evaluation of numerous factors, including web traffic, social media followers, and timeliness.
