Creating company values is more than just a box-ticking exercise. When done right, it can profoundly influence your organisation's culture and productivity. Strong company values act as a compass, guiding decision-making, shaping behaviours, and fostering a sense of unity and purpose among employees. Here's why defining and implementing company values is crucial and a step-by-step guide on how to create them.
Benefits of Creating Company Values
1. Guiding Decision-Making
Company values serve as a framework for making consistent and aligned decisions across all levels of the organisation. According to a study by Deloitte, 94% of executives and 88% of employees believe a distinct workplace culture is important to business success, with values playing a critical role in defining that culture.
2. Building a Positive Culture
Clear values help in cultivating a positive and inclusive workplace culture where everyone knows what is expected and valued. A strong set of values fosters an environment of trust and collaboration, which can enhance overall workplace satisfaction and morale.
3. Enhancing Employee Engagement
When company values resonate with employees, they are more likely to feel motivated, engaged, and committed to their work. Gallup research indicates that employees who are aligned with their company's values are significantly more engaged and productive.
4. Attracting and Retaining Talent
Strong, well-defined values attract like-minded individuals who share the same principles, aiding in the recruitment and retention of top talent. Companies with a strong sense of values and purpose often have lower turnover rates and higher employee loyalty.
5. Driving Performance
Values that promote excellence, integrity, and collaboration can drive higher performance and productivity within teams. A McKinsey report found that companies with strong values outperform their peers by creating a sense of purpose that drives better business results.
1. Evaluate Personal Motivators of business Owners / Directors
Begin by completing a personal motivators sheet, ideally with your fellow Directors. This exercise helps in identifying what drives each of you and ensures your values align with your personal and professional motivations. Understanding these drivers can help align the leadership team's vision and create a cohesive set of values.
2. Request Feedback from Employees Regarding Values
Gather input from employees, especially long-serving and senior members. Ask them what they believe the company's values are and what words they use to describe the organisation and its behaviours. This step ensures inclusivity and that the values resonate across the organisation. Engaging employees in this process can also increase their commitment to the values.
3. Collate Information into Groups of Words or Phrases
Collect all the feedback, including your own and that of other Directors. Group similar words or phrases together to identify common themes that reflect the essence of your organisation. This collaborative approach ensures that the values are comprehensive and representative of the entire company.
Choose 3-5 groups of words or phrases that best represent your organisation and align with your personal values and motivators. These should encapsulate the core principles you want to uphold. Limiting the number of values helps maintain focus and clarity.
4. Distil the Meaning into Clear Values
Define each group clearly, avoiding vague one-word values. Aim for phrases that can start with "We" to make them actionable and relatable. For example, instead of "Integrity," you could use "We act with integrity" This approach makes the values more actionable and easier to integrate into daily operations.
5. Put Values into Context
Provide context for each value with a brief description or a line or two that makes them easy to understand and relevant to daily operations. This helps in internalising the values within the organisation. Values should be more than just words on a wall; they need to be lived and breathed by everyone in the organisation.
6. Communicate the Values to the Entire Organisation
Once the values are defined, communicate them clearly to all employees. Use various channels such as meetings, emails, intranet, and visual displays around the office. Ensure that every employee understands and embraces these values.
7. Integrate Values into Policies and Procedures
Embed the values into your company’s policies, procedures, and daily operations. This includes performance reviews, recruitment processes, and decision-making frameworks. By integrating values into the fabric of the organisation, they become a natural part of how business is conducted.
8. Train Leaders and Employees on Living the Values
Provide training and development programs to help leaders and employees understand how to incorporate the values into their daily work. This can include workshops, seminars, and ongoing coaching
9. Bring the Values to Life
Integrate the values into your company’s culture by rewarding behaviours that align with them and addressing actions that contradict them. Use the values as a benchmark for performance reviews, recognition programs, and disciplinary measures. Embedding values in everyday processes helps ensure they are consistently upheld.
10. Regularly Review and Update the Values
Periodically review the company values to ensure they remain relevant and aligned with the organisation’s goals and culture. Solicit feedback from employees and make adjustments as necessary to reflect any changes in the company or its environment.
At Hewett Recruitment, we have successfully integrated our values into every aspect of our business to become a truly values-led business. A few of the things that have worked for us in achieving this are:
1. Monthly Peer Nominations
Every month, we ask our employees to nominate peers who have demonstrated our values. This initiative is highly engaging, with numerous nominations each month. The winner is announced at our monthly meeting and receives a retail voucher. This practice not only celebrates individual successes but also reinforces the importance of living our values.
2. Annual Values Conference
Instead of a traditional sales conference, we hold an annual values conference where we present the annual company awards based on our values. This event highlights the significance of our values and recognises employees who exemplify them.
3. Career Progression and Performance Management
Our values are a core part of our career progression and performance management processes. Living the values is a gateway to succeeding within our company. We hire and fire based on values as our first principle.
