Company Culture Metrics: What You Need to Be Tracking and Why

Why you need to track company culture metrics

Company culture metrics reveal how satisfied employees are and what your company is doing right to create a positive company culture. This information also sheds light on areas of your organization where employees may feel unsupported. 

Through company culture metrics such as employee retention and engagement, leaders can determine whether the organization’s goals align with actions by uncovering areas for improvement, said Carlie Crouch, director of talent management at Trinity Logistics.

“Tracking these metrics can be challenging, but effective methods include engagement surveys, pulse surveys and roundtable discussions,” Crouch said. “Monitoring monthly turnover rates can also help identify trends. However, be mindful of overusing surveys; conducting official surveys twice per year is typically considered best practice.”

According to Crouch, it’s important to track these methods to identify areas that need improvement, as well as to reevaluate and adjust methods to continue improving outcomes. That’s because a healthy company culture is a standout trait that many companies tout or desire. 

A positive company culture may help your business attract better talent, gain employee trust and increase revenue. For example, if you’re trying to create a healthier and more welcoming company culture, you can gain insight into how inclusive your company is by measuring diversity, equity, inclusion and belonging metrics.

“Managers should think of company culture as the ‘glue’ that holds everything together,” Crouch said. “Once established, it must be upheld, even if that requires making tough decisions to protect it. In the absence of an existing culture, a leader can help establish one by first defining their core values and mission — the ‘Why are we here?’ Then, they must commit to those principles, lead by example, and develop their team members to align with those values and mission.”

When companies fail to address their employees’ concerns, they may feel demoralized or unheard, leading to reduced productivity, poor performance and decreased revenue. However, by using these metrics to improve your organization, you can stop issues or bad habits before they arise. This proactive approach can improve employee performance, morale, engagement, productivity and retention.

The company culture metrics you should track

Here are the key company culture metrics to monitor.

Employee referrals

Employee referrals can demonstrate a lot about how workers view the workplace. If an employee is satisfied with their job, they will likely refer others to the organization; if they aren’t, they’ll advise people not to work there. By tracking the number of employee referrals your company gets, you can measure employee satisfaction and see how your company culture affects your staff. 

Productivity

Productivity is an important metric to track because an unproductive employee or team may indicate a deeper problem within the organization. Employees should feel motivated to do their jobs. But if the team is in an unhealthy work environment, they may lose motivation and feel unaligned with the company’s goals, which can reduce their productivity. 

“If employees are motivated and aligned with the company’s values, their performance and productivity will reflect that,” said Rhett Power, co-founder and CEO of Accountability Inc. “This is better when you have concrete deliverables for each team member and they understand where those deliverables connect to the company goals.”

Communication 

By tracking communication metrics, organizations can ensure employees feel empowered to freely share constructive feedback and opinions without fear of repercussions. Employees should feel encouraged to be open and honest with those in their company, regardless of their position. 

“Communication and collaboration tools like Slack, Microsoft Teams or Zoom can help monitor collaboration metrics, such as message activity and cross-functional engagement,” Power said.

Adaptability

It’s essential for employees to feel well equipped to handle organizational changes. Otherwise, they may wind up feeling overwhelmed and overworked. Managers may feel prepared to handle changes with relative ease, but that sense of empowerment might not extend to other employees. 

By tracking adaptability, businesses can see how employees feel about upcoming changes and if they would be able to adapt to them quickly. If employees are not ready for the changes, companies can provide resources to help their staff build the necessary capabilities.

Turnover and retention rates

Employee turnover and retention rates can be strong indicators of a company’s culture because these metrics demonstrate how quickly employees voluntarily enter and exit the organization. If new hires and existing employees leave a company at a high rate, this could indicate an issue within the organization — likely a negative workplace culture — that the organization must rectify. In contrast, employees are likely to stay with a company for a long time when the workplace has a positive culture.  

“Employee engagement platforms, like Gallup or Culture Amp, allow for employee surveys and pulse checks, providing actionable insights on engagement and satisfaction,” Power said. 

Personal wellness

Giving employees access to a personal wellness incentive, such as a gym membership discount, can demonstrate that your workplace truly cares about helping employees stay healthy. A personal wellness program is also an economically sound choice for your company.

Comfort level of the work environment

Characteristics such as the office layout and the comfort level of a room can make a big difference in whether people do their jobs well and feel content. Some employees may hesitate to express concerns about physical discomfort to a human resources representative. However, even basic features, such as temperature, can make a difference in productivity.

Employee recognition and support

When employees feel that they are contributing positively to an organization and that colleagues are noticing those efforts, they’re more likely to be in higher spirits and feel a greater sense of self-worth. In contrast, if people feel that they are getting lost in the shuffle and that no one would notice if they stopped doing their jobs, it can reduce an entire team’s productivity.

By tracking the company culture metrics described above, you can make organizational changes that keep employees happy, reduce turnover and make your workplace a more positive environment.

Tejas Vemparala contributed to this article.