The Importance of Culture Metrics

Everybody knows that company culture drives success. When a brand’s efforts to create a great culture are successful, they have the power to hire and retain better talent. This hiring leads to greater innovation, better customer service, and eventually growth and profit. 

How does a company measure this? Is it possible to quantify something as abstract and subjective as a culture? The answer is yes. In order to do so, you have to understand the most important metrics to track when analyzing your company culture, how to take those measurements, and what to do about the results.

3 Culture Metrics You Should be Tracking

All too often, brands struggle to understand their own culture because they become inundated with too much data. This inundation leads to the proverbial “analysis paralysis.” 

Keep things simple instead of gathering and analyzing information on every element that you think might impact worker experience and cultural perception. If you keep your sights on these three culture metrics, you’ll know everything you need to know:

Diversity Equity and Inclusion (DE&I)

DE&I can be a complicated metric to track or even understand. Frequently, companies look at their hiring data to measure their success with this important cultural metric. Unfortunately, hiring a diverse staff is only part of the picture. True DE&I means:

  • Diversity — Is there adequate representation of different groups in various business areas or levels of the management structure?
  • Equity — Do all employees have the same access to opportunities, development, salary, and advancement?
  • Inclusion — Are all employees welcome to participate, share, communicate, and contribute?

Why is DE&I Important? Both Millennials and Zoomers rate diversity as a very high priority when choosing which employment opportunities to pursue.

CEO Score

CEO score is an important indicator of faith in company leadership. Companies with a high CEO score generally experience better employee engagement and retention. Additionally, job candidates often use their impression of a company’s CEO to judge whether they will pursue opportunities with that company.

Why is CEO Score important? The CEO is the public face of any organization. Their reputation is, essentially, the brand’s reputation. Employees who have faith in their CEO will feel more invested in the organization’s success.

Net Promoter Score (NPS)

Net promoter score simply answers one question: Would you recommend this company to someone who was looking for a job? People who answer this question can be divided into three categories. These are promoters, passives, and detractors.

Promoters are employees who are so happy and engaged that they would actively promote the company to friends and family members. Passives are workers who are satisfied enough to stay but aren’t motivated to recommend the company. 

Finally, detractors are employees that would actively discourage others from pursuing a job with the company. 

Of course, NPS can also be measured by polling former employees or job candidates. It’s a measure of subjective experience.

Why is NPS important? This straightforward metric lets employers know exactly how their workers feel about their organization and culture. When these scores are good, brands can use them in their recruiting efforts, including creating employee brand advocacy initiatives.

Collecting Company Culture Data

Culture analytics is the process of collecting and analyzing data in order to get a clear picture of company culture. Much of the information needed to track these metrics can be gathered by surveying verified employees, candidates, former employees, and even members of the public. 

Additionally, you can glean some information from hiring records and employee demographic data.

What can Employers do With Cultural Data?

The first thing that any employer will want to do with the cultural insights they receive from the metrics above is to identify areas of success and failure. If there are areas where improvement is needed, the best way forward is a proactive approach. Dig into the specifics of the data and create an improvement plan. This plan might include:

  • Reviewing salary and compensation data to ensure it is in line with market rates
  • Improving leader communication with workers
  • Creating mentorship and employee development programs
  • Ensuring that organizational decisions and actions align with stated values
  • Constructing meaningful employee recognition programs
  • Modifying recruiting strategies to actively recruit diverse candidates for jobs at all levels of the organization

Ideally, your company culture data will reveal areas of strength as well. This revelation is a good thing. Positive company culture data can be used for many purposes. These include:

Engaging Prospective Employees

Today, job seekers actively research companies to gather as much information as they can about company culture. Brands can get ahead of the game by proactively sharing that data on their career pages, in job listings, and with other recruiting content. 

You can even customize a culture widget to share positive information about company culture.

Communicate Diversity Efforts

DE&I efforts are so important to employee engagement, retention, and recruiting that they deserve more focus than many organizations give them. Consider using your positive diversity data to create a comprehensive diversity report that you can share with employees, on your company career page, and over social media.

Boost Employer Brand and Employee Value Proposition

Employer brand is how people perceive your company as an employer. Your Employee Value Proposition (EVP) is the value that you communicate to job candidates. This EVP essentially answers the question, “what will I get out of working here?”

You can improve your employer brand by sharing information, including positive reviews, employee video testimonials, and CEO profiles across your social media networks and on your website. 
If you haven’t created an EVP, you are missing out on a key opportunity to communicate your value to top talent. Use the data you have gathered about your company culture to provide key evidence of your value as an employer.

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