• by Jack Loechner , Staff Writer @mp_research, November 8, 2016

According to the September The Alternative Board 2016 Small Business Pulse Survey, hundreds of businesses owners differentiate between strong company cultures and weaker ones, based on factors such as flexibility, leadership style and profitability. While 93% of the entrepreneurs surveyed agreed “promoting company culture boosts productivity and creativity,” they weren’t so unanimous on how to create that kind of culture, says the report.

TAB Chief Marketing Officer, Jodie Shaw, says “… small businesses benefit from a positive company culture… this survey (provides a) new insight into the kinds of business practices that create a positive, profit-driving culture…”

The report says that 78% of business owners who identified their company as having a “strong company culture” agreed that flexible schedules make employees more productive, but only 58% of business owners who described their culture as “average or weak” felt the same way. Similarly, business owners who thought their company had a “strong culture” were 13% more likely to see telecommuting as a productivity-boosting practice, compared to owners who did not think their company had a strong culture.

According to the Association for Talent Development, notes the report, “… a flexible work arrangement is an effective way to boost engagement without additional payroll expense… flextime, compressed workweeks, and telecommuting options are… perks (that) potential employees are looking for when selecting an employer… organizations that do not offer these options… miss out on recruiting top talent… lose skilled employees to companies that offer better work-life balance…”

The majority of average/weak culture business owners selected “demonstrating stronger leadership” as their top goal for establishing company culture, says the report. Strong culture business owners selected “strengthening the personal connection between employees and customers.” Based on these results, says the report, stronger company culture focuses on the employee’s role first and the leader’s second.

Business owners who identified their company as having a “strong culture” agreed that their culture increased profitability. Only 20% of entrepreneurs, who thought their business had an average or weak culture, felt that way.

Shaw concludes that “…average/weak culture owners might see a bigger benefit if they put more emphasis on employee satisfaction… a good place to start is increased flexibility… and helping employees understand how they fit into the bigger picture of the business…”

The Alternative Board is an international provider of executive peer advisory boards, with over 3,000 members worldwide, helping forward-thinking business owners grow their businesses, increase profitability and improve their lives by leveraging local business advisory boards, private business coaching and proprietary strategic services.

For additional information from The Alternative Board (TAB), please visit here. For the correlative  Infographic, visit here.