We are facing unprecedented times. Economists said the same thing in 1929 and again in 2008. But we now have the benefit of recognizing what we can do to survive these times. Each recession was caused by different factors. But we can still draw conclusions on building businesses that thrive during difficulty.
Part of thriving is adapting to changing and challenging times. But beyond that, you need to also check your company culture.
To survive a global recession and thrive in the world after, your business needs a great culture. Your business’s culture will feed your team’s desire to fight for you and your business.
You are only as good as your team when you are scaling a business during a global recession.
Are you scaling during a global recession? We have a few key checkpoints that play into company culture. These checkpoints will ensure you can scale even during a global recession.
How To Make The Most Of Your Company Culture In A Global Recession
To take care of your team, you need to address your company’s culture. Team members thrive in company cultures that encourage growth from the top down.
If you want your employees to fight for your business, you need to keep them invested. Encouraging emotional buy-in will make them want to see the business succeed. Your team members will not start with the same passion you have for your business’s success.
So you need to encourage that commitment through your culture and values.
In a global recession, a team that works hard for you is significant. It is the difference between a thriving business and a failing business in hard times.
You need a team that fights as hard for your business as you do.
Even when you can’t offer cost of living raises. Even when you have to make cuts.
Checkpoint #1: Easier Talent Attraction
How much effort does it take you to attract the right talent?
89% of employees who work at businesses with wellness initiatives are likely to recommend the business as a good employer. Imagine having a team that recruits top-notch professionals from their network for you.
If you offer an excellent culture, your employees will recruit for you. You just improved your recruitment (and, in turn, business) without even trying.
Reminder: the value of your team dictates the value of your business.
So you need to consider your recruiting process that attracts quality talent.
How much more could your company do if you had high-quality talent approaching you? How much value does that add in a global crisis, when people may be reticent to leave other jobs?
You need to be attracting high-quality team members, so you can remain at the top of your industry.
To take full advantage of the benefits of a great corporate culture, you need to acknowledge where that culture comes from.
You define the culture of your company. It starts at the top.
Checkpoint #2: Total Alignment From All Employees
You are the leader of your organization. You are the top. So your values drive the culture of the rest of the company. This is your company’s top-down culture.
So to check your company’s culture, you have to start by evaluating yourself. What standards are you setting for yourself? Are there toxic traits you are letting yourself be harmed by in the workplace? Are you micromanaging?
To build a high-performance team, you need to trust your team and let them have the freedom they need to do their job. Letting toxic habits dictate your management style inhibits your company’s growth. Spoiler alert: micromanaging is a toxic habit.
Additionally, you need to show your company’s values. If you are living by the values you have defined for your business, your employees will follow suit.
This will not only help your business hold true to your public values, but it will create a more cohesive team. If you are all working in the same direction for the same purpose, you will work better together. And in a global recession, your team working together is crucial.
Do you have total alignment from all employees?
Total alignment is a checkpoint for a company that is going to thrive. Not only during the recession but in the world after as well.
This total alignment is shown in your company-wide reaction to the crisis. Your personal reaction to the global recession also dictates your top-down culture. This is a moment to show your team they (and their safety in this crisis) are a priority. This also gives you a moment to create transparency.
Checkpoint #3: Complete Transparency
This is another checkpoint for a business that will thrive in the world after a global recession. Transparency is key to a team that can work well together for the good of the business.
The world is obviously in crisis. Businesses are struggling. Your team is likely feeling uneasy during this time. They are wondering if their jobs are safe and how the business is faring.
While putting on a brave face is sound advice, you need to acknowledge their concerns. You have to address them and show them what the business is doing to survive. This transparency creates trust.
When your employees trust you, they are more likely to be honest with you. This trust also increases their emotional connection to you and your business. So they will work harder for you. Even amid a global recession that has left the world feeling unsure of the future.
Company Culture In This Global Recession
Recognizing how you’re impacting your business’s culture isn’t enough. You need to take steps to make sure you are providing a healthy culture for your team.
The current global recession is directly tied to physical health. Therefore, you need to show that you value your employees’ health. If your employees feel like you are asking them to be in physical danger when they could safely work from home, they will resent you.
Large corporations are encouraging employees to work from home over the next year. Their employees know that their safety is top-of-mind for their employers.
Not to mention that the world after this global recession will be a lot more virtual.
In a Business 3.0 world, companies need to utilize virtual, international teams. And we’ll address that issue in corporate culture, as well.
But the biggest issue here is that employees need to feel like their employer cares about them.
For instance, 87% of employees expect their employer to support them in a more stable work-life balance.
Let’s pretend for a moment that you are a person who loves pizza. And on Monday, you start to plan for dinner on Friday. You choose your favorite type of pizza. On Wednesday, you confirm with your partner that you will be having this specific type of pizza on Friday. When Friday morning comes, you ask your partner to pick up the pizza. You’ve spent all week fantasizing about how great that first bite will be. By dinner time, your mouth is practically watering in anticipation.
But your partner walks through the door with hamburgers.
You would be devastated, upset, and angry. Why? Because your expectations were left unmet.
Disengaged employees are a definite sign of a suffering culture. If you feel like the only one invested, your teammates are most likely disengaged.
What Are The Signs of A Suffering Culture?
When evaluating your corporate culture in a global recession, ask yourself the following:
- Does my business have a high turnover? Translation: are people unwilling to work on my team?
- Are deadlines often missed or pushed back? Translation: are my employees so overworked they cannot handle the load or are they so disengaged they are not bothering to try?
- Does my team have buy-in? Translation: are they all invested in me and my company?
- Do team members not share their concerns? Translation: are my employees not comfortable enough to share their worries or are there genuinely no concerns?
- Do I feel constantly overwhelmed? Translation: am I not delegating effectively and do I trust my team enough to effectively delegate?
- Does my team know my company’s value? Translation: am I doing a good job translating my company’s culture?
- In what ways am I showing my team that I care about their well-being? Translation: does my team know I care?
That last question is key to determining your culture through the eyes of your employees.
Are you ready to recognize that your employees are the ultimate decision-maker on what your corporate culture is?
Yes, culture starts at the top. It begins with how you behave and represent your values. But what happens when your efforts don’t impact your employees? They will still view your business’s culture negatively.
If you really want to know what your corporate culture is, you have to ask your employees. Find out what they feel and think about your culture. Then take steps towards creating a healthy culture in the midst of a global recession.
What Steps Can You Take To Keep Culture Good in a Global Recession?
Taking the time to address concerns your employees have will help them to feel reassured and valued. That will increase their trust. What else can you do in a global recession to change your corporate culture?
- Let your team work remotely. In this pandemic, it will increase morale as they feel safer. But it’s also more productive.
- An Airtasker survey found people working from home worked more. They worked an average of 1.4 more days every month. That is more than two weeks of work each year. Plus, they were more productive during the time they did spend working.
- Let your team choose their hours. People are productive at different times. So giving your employees the ability to choose their own work hours will allow them to work when they are most productive.
- Freeing your team from the 9 to 5 grind is a step towards helping them manage their work-life balance. This will help fulfill their expectations. Additionally, when working with a powerful global team, people will be working all around the clock. So flexible hours are crucial and beneficial.
- Offer training. If your team is made up of ambitious executives, this will endear them to you even more. Give them the opportunity to build their skills.
- If your business is experiencing a lag in demand during the global recession, use the extra hours for training. Is there no way your sales team will close more sales right now? Help them brush up on their high ticket closing skills.
- Offer wellness initiatives. This will look different from company to company. So you need to talk to your employees about their needs.
- It may be as simple as surprising remote employees with a package of treats. Or it may go deeper, like paid mental health days. Take a look at your company values and determine which initiatives work best for your company and your people.
- Treat your employees like stakeholders. If you don’t treat your employees like they have an end date in the business, then they will be more invested.
- Keep your employees invested in the future by offering actual buy-in opportunities. Treat them like long-term residents over vacationers.
- Clarify job descriptions. This will prevent scope creep and allow people to be more content in their jobs.
- When people feel like random things are continually stacked on their plate, they are less content. They are also less productive as they try to learn how to do more jobs.
You need to keep your morale up and culture excellent during a global recession. Because there are other reasons for your profits to be hurting other than your team not working for you.
How Culture Impacts Profits
Profits are important in any business. But being set-up for long-term, predictable revenue is the next step in scaling. And the next checkpoint in knowing you are set-up for success in a global recession.
As a business owner, you need to speak the language of people. If your team is not working for you, then no one is. But you also need to speak the language of money, so profits have to matter to you.
So it is really important for you to recognize that an improved culture will increase your profits. This is mainly because a good culture increases employee engagement.
A recent Gallup study found that businesses with highly engaged employees had 59% less turnover. That is untold hours saved in recruiting, onboarding, training, and transitioning. These businesses also saw a 20% increase in sales and a 21% increase in profitability.
Employees who feel disengaged cost businesses between $450 and $550 billion each year in the US.
That is a lot of money left on the table when it could be reclaimed by employers listening to what their employees need.
So why do engaged employees increase profits? It’s because they are more productive with a higher buy-in.
Are Happy Employees More Productive?
We’ve said a number of times throughout this piece that you need to talk to and to listen to your employees. And that’s not without cause. According to a Salesforce survey, employees are 4.6 times more likely to offer their best when they feel heard.
It’s really quite simple: engaged, happy employees are more productive, which leads to higher profits.
The issue of culture is not just a concern about turnover. It’s an upper-level management concern about profitability. Are you considering what role culture needs to play in the future of your company to survive this global recession and the world after? By this point, you really should be.
Because after the Global Recession comes Business 3.0.
How Does Culture Play Into Business 3.0?
Business 3.0 is how future businesses will operate. These businesses won’t be in brick and mortar locations. They won’t be weighed down by heavy infrastructure and overhead costs. They will be made up of nimble, adaptable, virtual teams who work all over the world.
That is what the world looks like after the global recession.
Being global, virtual teams means you will have access to the best talent all over the world. But they need to want to work with you. You need your employees to be raving fans of your business. That will secure the best talent to keep your business growing in the world after the global recession.
The Ultimate Guide To Keeping Your Culture And Profits Up
Are you ready to scale your business in the face of a global recession? Are you ready to seriously evaluate if your culture is promoting growth and is positively enhancing your team?
Then we have a tool to help you evaluate the future of your business.
We’ve covered a number of checkpoints to make sure your business is scalable in a global recession. This guide will take you to the next step of success.
Our guide will help you determine how to keep your business growing. Even in a global recession. What got you where you are won’t get you where you’re going.
Inside your exclusive guide, you will learn how to make sure your business is on the same page. From the top-level executives down to the employees on the frontlines. It will dive into the power of transparency, clarity, and accountability from employees.
This guide evaluates talent attraction, scaling tactics, long-term predictable revenue, and more.
But most importantly, it’s written by someone who knows what they are doing. Dan Lok has been there and now works daily with entrepreneurs all over the world to scale their enterprises.
Just because we are facing a global recession does not mean you have to give up. You can prepare your business now to survive this recession and the world that comes after it. Get yourself the tools to do that today.