Encouraging an Engaged Workplace Culture
Yesterday, when I shared with a former employee of a large corporation that I am a governance consultant, she had an immediate heartfelt response. “Boards don’t care about employees”, she declared. “They make decisions without any regard to how they will impact the employees’ work life.” Unfortunately that may be a common employee opinion. When the workplace culture drains energy rather than generating energy, the organization achieves less and has weak financial results. This should be of grave concern to the board.
One of the board’s key roles is to direct the organization in the interests of the owners. Directing includes developing the strategic plan and involves stating clear organizational values. Some boards identify the concept of employee engagement – a proactive, mission-focused staff team – as a value. This tells the senior executive that he is expected to create and maintain a positive, rewarding workplace culture. It also sets the expectation that the board will set policies and make decisions that enable a fulfilling employee experience.
Another key role of the board is to protect the interests of the owners. This requires that the board monitor the organization’s compliance with its values and policies. Some organizations conduct an annual workplace culture or climate survey of employees to assess the level of job satisfaction. This can be used as an indicator of potential staff retention. By reviewing at least the key findings of such surveys, the board can hold the senior executive accountable for leading an empowering workplace to which employees will give their best. With a high percentage of experienced staff there is generally a lower training budget, higher work output, and thus a stronger financial bottom line.
Workplace culture is generally considered the responsibility of the CEO. However, the board, as the senior leadership level in the organization, has ultimate responsibility for this critical influence on organizational performance. The board can exercise its influence best by articulating the importance of a positive workplace culture, by monitoring the reality, and by holding the CEO accountable for providing an engaging work environment.
