The Role of HR in building a Stronger Organizational Culture

CEO Insights

As organizations grow and develop, so does its culture. That could be a good or bad thing. The values, beliefs, and behaviors that shape your organization can either enhance or hinder productivity, worker satisfaction, and overall success. It is important for those of us in leadership roles to have an awareness of how significant organizational culture is to our organizations but also how important that culture is directly influenced by our human resource teams.

My early years in the business world HR was often seen as a support function, focusing on hiring, benefits, and compliance, but that’s just where their job begins as it extends way beyond those responsibilities. Those of us who understand and appreciate HR’s value make sure HR is in lock step with our organization’s goals and participating in executive-level planning.  As organizations grow, HR is vital to building and sustaining a healthy organizational culture.

Establishing Core Values and Norms

In organizations like ours, where our core values are how and why we serve others, HR is tasked with helping define and communicate these core values. These values are the foundation to an organization’s culture. By clearly articulating what your organization stands for and expects from team members, HR fosters a shared understanding across the entire team.

HR should create programs and initiatives to reinforce these values. Whether through leadership development programs, regular internal communication, or rewards for demonstrating these values, HR ensures they are at the forefront of your organization’s operations. In our case HR is responsible for our Kudos program in which team members can recognize other team members with reward points and indicate one of our core values that stood out in their outstanding efforts being recognized.

Key points for HR in promoting values:

  • Have a few simple core values that are easy to understand and remember
  • Integrate values into recruitment processes to attract like-minded individuals
  • Encourage behaviors that reinforce these values throughout the organization
  • Constantly have core values in daily communication and discussion.

Recruitment and Onboarding

Recruitment is one of the most powerful tools HR has to shape organizational culture. By hiring individuals who align with your organization’s values, you are laying the groundwork for a like-minded and supportive culture. The goal is to find people who will contribute to and thrive within your organization’s environment. For us it is important to have HR do the initial screening of candidates who then, if technically qualified, go to a diverse group of our organization’s leadership team members for additional culture interviewing.

The onboarding process is another area where HR can make a big impact. When team members are introduced to your organization’s culture from day one, they are more likely to embrace and become part of your culture. HR can facilitate this by providing new hires with clear insights into organization values, expected behaviors, and how they can contribute to the culture and organizations WIG’s (Wildly Important Goals).

Team Members Engagement and Retention

A strong organizational culture fosters team members’ engagement, which in turn leads to higher levels of productivity and retention. HR plays an important role in creating a work environment where team members feel valued, heard, and motivated. Personal interaction, feedback channels, and team member recognition programs are just a few ways HR can influence the workplace atmosphere.

Worker’s retention is another key component of an organization’s culture. When workers feel that their workplace culture aligns with their own values and that they are part of something larger, they are more likely to stay long-term. HR’s role in developing a culture of trust, care, respect, and support is invaluable.

Key actions for HR to boost engagement and retention:

  • Regularly gather feedback and act on it to improve worker satisfaction
  • Implement recognition programs that align with company values
  • Create opportunities for growth and development within the organization
  • Make sure everyone feels they have a place they can express themselves

Leadership Development

The tone of any organization is set by its leadership.  Not only does HR need to be valued, aligned, and working very closely with senior leadership, HR needs to be a key part of this group. HR should be responsible for helping develop and nurture the next generation of the organization’s leaders. HR needs to ensure they not only possess the necessary job skills but also understand and can champion the organization’s culture. Leadership development programs, mentorship initiatives, and career planning all play a role in preparing your future leaders to foster a positive culture. HR should help identify individuals who demonstrate the potential to lead while also representing the organization’s values. In our case HR identifies team members and works with these smaller groups in mentoring meetings through discussions, books, tools, providing training and support to help them succeed, creating a ripple effect throughout the organization.

Conflict Resolution and Worker Relations

A healthy company culture doesn’t mean there are no challenges or disagreements. Conflicts are inevitable, but it’s how they are addressed that can make a difference in the culture. HR plays a key role in conflict resolution and managing team member relations for a positive and productive environment. HR should build trust and communication, so team members feel comfortable proactively reaching out to them.

HR helps resolve conflicts fairly and transparently, ensuring that all workers are treated with respect. This proactive approach to team member relations can prevent misunderstandings from escalating, ultimately fostering a culture of trust and collaboration.

The Impact on Team Members Well-being

A strong organizational culture contributes to the well-being of its workers. HR plays a key role in designing programs and benefits that support both the personal and professional lives of your team. Team member wellness programs, mental health support, and flexible working arrangements all contribute to a positive and healthy culture.

By focusing on the welfare of your team members, HR helps create an environment where individuals thrive. This leads to higher productivity, greater worker pride, customer satisfaction and a more positive culture overall.

Sustaining Culture Over Time

Organizational culture is not something that is built and then left alone. As a seasoned veteran I can attest to the fact it requires constant attention and evolution. As your organization grows, it’s important to continually assess and adapt your culture to meet the changing needs of your workforce.

HR plays an ongoing role in sustaining a positive culture, regularly evaluating workers’ engagement, adapting programs to new challenges, and evolving policies to align with the organization’s growth. The HR team’s ability to stay flexible while keeping the company’s core values intact is key to long-term success.

HR’s Role in Your Organization’s Culture

HR is much more than just a support function like in my early years of business.  It’s the driving force behind building, shaping, and maintaining an organizational culture that fosters engagement, loyalty, and long-term success. By working closely with leadership, team members, and managers, HR helps ensure that your organization’s culture remains aligned with its values, vision, and goals.

HR teams can help create an environment where team members feel connected to the organization’s values, help support their professional development and motivated to contribute to the organization’s success. A healthy culture leads to a happier workforce and a stronger, more resilient organization.

In summary, HR’s role will continue evolving and engaging actively with business units. HR’s relevancy and interactions with the C-Suite will increase as we move from infancy to mainstream AI in the workforce. HR will be critical to maintaining an organization’s culture during these rapidly changing times. How HR is viewed and valued has come a long way since my early days working for a hospital. The HR office was next to our IT department in the dark basement and HR was viewed as a necessary business expense not income generating. No longer a necessary business unit to find space for but now HR is vital to an organization growth and culture and now resides next to the C-suite.

Preserving Business Continuity:

Our Business Continuity Plan is designed to keep business up and running during any crisis.

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