How important is money over team culture?
Team culture has quickly become one of the top priorities for HR professionals in the last few years.
A quick Google search will bring up pages of articles with titles like ‘5 reasons why team culture matters more than salary’ and promising that young employees care more about values than pay.
But is that really true?
Of course, it’s vital that employees are treated well but can it be the case that team members would be willing to sacrifice higher pay for a better culture fit?
We’re taking a closer look at some of the myths and ideas around team culture and pay, and sharing how your company can stand out from the crowd to give employees what they really want.
What is team culture?
Team culture or, more broadly, company culture is the shared values, attitudes and styles of working that a team possesses.
This is shaped not only by the employees themselves but by core company values and management practices. A team of enthusiastic and creative individuals can find their energy dampened by heavy bureaucracy, for example, while effective systems can facilitate greater creativity.
When you say the words ‘team culture’, people often think about gimmicky benefits such as an office pool table or Friday drinks. But these are only one aspect of what makes up company culture.
In reality, team culture is less tangible and obvious. It encompasses daily interactions between team members, employee well-being, unspoken expectations, leave policies, project management and more.
Company culture seeps into every aspect of your business so it’s crucial to invest time and money into building a positive workplace environment.
Culture vs money - what matters most?
A recent survey by Glassdoor found that more than half of employees would prioritise workplace culture over salary and it’s been repeatedly reported that millennials will take a pay cut to work for value-driven organisations.
However, while good culture is vitally important, we would argue that you can’t create a great company culture without first providing decent and fair wages.
It may be true that employees are willing to work for less in an organisation that more closely aligns with their values and ethics, but this doesn’t mean that they should be offered unreasonably low wages.
As we mentioned before, team culture is about more than feel-good initiatives. It’s about creating an environment in which employees feel comfortable, secure, and empowered to do their jobs well.
One really important way that businesses can encourage this is by paying their team fairly for their work. Employees who are paid well will feel valued by the company and as such, they will also have greater loyalty towards their employers too.
Fair wages also allow employees to create a more comfortable life outside of work, including paying for expenses such as childcare, transport and other bills that make life easier and help them to leave their worries at the door when they get to the office.
Conversely, paying good wages is not enough when it comes to building a positive team culture. Employees who are paid well but whose time and energy are not respected in the workplace are likely to burn out and suffer from exhaustion and poor mental well-being.
So, what’s more important - money or culture? In short, fair wages are required for good company culture but money alone is not enough to keep employees happy and well-supported.
How to create a positive team culture
Beyond fair pay, there are several ways that employers can foster a positive culture in the workplace:
Set clear and realistic goals
Employees should be aware of the wider company goals to help everyone understand what they’re working towards.
On an individual or departmental level, any goals set must be reasonable and achievable. There is nothing less motivating than working towards an impossible goal!
Prioritise diversity and inclusion
Good company culture is made up of many different voices. In a fair and respectful workplace, everyone has the chance to give their input and shape the culture with their actions and ideas.
Diversity and Inclusion policies are vital to help encourage a variety of perspectives and opinions in an organisation. Even at the hiring stage, your culture is already being shaped and perceived by candidates, make sure you give a good first impression.
Flexibility and fair policies
Fair policies are not just part of recruitment either. A healthy team culture is one where everyone is aware of the types of leave entitled to them and feels comfortable utilising leave policies without judgement.
For example, offering a mental health leave day is a fantastic way to show your employees that you care about supporting their mental well-being, but these types of policies are often under-utilised for fear of judgement and stigma.
Flexible working hours are another huge thing that employers can implement to support the mental well-being of their team. One study found that 33% of working Australians say flexibility is the most important action that their employer has taken to support mental health, and 60% say that flexible work is more important to them than career progression.
Create opportunities for connections
While good team culture is about a lot more than Friday drinks and office parties, socialising is still an important part of good workplace culture. Instead of emphasising plans outside of office hours which are often infeasible for employees with children or other commitments, create opportunities for team members to connect during the working day.
Encourage inter-departmental projects or try a digital solution like CoffeePals for Microsoft team which randomly connects team members for a coffee break each week.
Appealing to potential candidates
When it comes to attracting great candidates for your vacancies, there are a few ways you can highlight your company culture and stand out from the crowd.
As we mentioned before, fair wages are an integral part of a healthy team culture so ensure that you always publish salaries alongside job adverts and note if these are open to negotiation.
Highlight the ways that you support Diversity and Inclusion in your hiring policies and include information on any other policies such as mental health days or flexible work options.
Finally, include any more frivolous company benefits you offer such as team days or pet-friendly offices, but make sure to acknowledge that your commitment to company culture and supporting your team runs deeper than these.
For more advice on fair salaries and building a good team culture, or for help finding your perfect new hire, speak to a member of the Conquest team today.
