Over the past few years, the pandemic has shifted the workplace culture. People worldwide need more flexibility, healthier workplaces, and well-paying jobs that allow them to work from home. Employers anxiously attempt to enhance their workplace culture to retain top performers and attract new ones. One of the key goals that leaders have been concentrating on is fostering and improving employee engagement to increase workforce happiness and encourage greater productivity. This article at Chartered Governance Institute UK & Ireland by Mark Peters and Derek Woodward recommends going beyond the employee engagement survey to assess your company’s culture.
Indicators of Effective Organizational Culture
Employee engagement surveys were once widely regarded as the primary or only data source to determine how an organization’s culture was faring. The primary goals of the employee engagement strategy, which also tries to develop employees’ psychological and emotional links to their workplaces, are increased job happiness and productivity. The author examines how boards, along with their other duties, might be effective in regularly investigating culture. The article provides several instrumental methods for directors to assess their organizations’ cultural climate accurately.
Going Beyond Employee Engagement
Responsibilities as a Board:
- Regular feedback with respect to employee engagement
- Identifying the reason for employee attrition and layoffs
- Board/individual NEDs visits to boost engagement and gain informal insights
- Regular feedback from customers, suppliers, and regulators
- Monitoring customer satisfaction/complaints
- Identifying if supplier payment terms are reasonable and adhered to
- Ensuring health and safety protocols are followed, and training and reporting of all incidents occur diligently
- Ensuring the board observes management behavior and action
Responsibilities of an Audit/ Risk Committee
The audit/risk committee should take ownership of the following responsibilities to assess and identify whether improvements are required in accounting and tools to maintain an optimal work environment:
- Is regular employee input collected on how accountability rules are applied?
- Are accountability conclusions fair and consistent?
- Do significant amounts of unadjusted discrepancies or specially disclosed items exist?
- Is the bond between management and outside auditors strong and stable?
- How does management handle challenges from the auditors?
- Can the external auditor be completely honest when meeting with the audit committee without management personnel? What about the internal auditor and risk officer?
- Does your management fully implement the recommended changes outlined in internal audit reports?
- Do your external auditors deliver their post-audit letter within the predetermined timeframes?
- Does the committee accept management’s obligation to identify risks and manage them per established risk policies with the help of the risk function?
Furthermore, the author lists the remuneration and nomination committee’s responsibilities.
To read the original article, click on https://www.cgi.org.uk/blog/are-boards-really-doing-enough-to-assess-and-monitor-their-organisations-culture