A tech startup thrives when its leader attracts a strong team to pursue the company’s mission. But, with the possible exception of Miranda Priestly (the unapologetic mascot for toxic workplace bosses,) a leader won’t keep the right team unless they intentionally nurture a healthy corporate culture.
A recent Glassdoor survey found that 77% of prospective employees take a company’s culture into account before applying. 57% of workers who quit their job did so because they felt disrespected at work.
Gallup loosely defines corporate culture as “how we do things around here.” No CEO sets out to deliberately do things to chase off good workers. But if she treats the culture as an afterthought, she can lose people by default. Top talent will disengage as soon as they stop connecting how their work contributes to the company’s Big Picture. Healthy people simply won’t stick around toxic workplaces- and companies won’t thrive without healthy people.
The cost of replacing an employee can range from one-half to two times their annual salary. Strong cultures have higher retention and a lower turnover– saving a company time and money.
We’ve identified three ways the leader of a tech startup can proactively build a strong team culture.
1. Communicate the company’s mission/vision/values early and often to attract the right people.
The company’s mission is a simple statement: why does your company exist? What’s implied- and just as important- is the opposite statement: what you’re not. Employees need to be clear on the point because your mission statement is non-negotiable. Clearly defining your mission is the first step in finding the right people for your team.
This conversation starts in the interview process and continues through the onboarding and into the regular team meetings. Look for opportunities to call attention to how team members make an impact within the organization, and how their contributions help the company accomplish its mission.
What kind of culture do you want to build? The company’s values reflect the criteria that define how you act and make decisions, which in turn define your culture. For team members to best contribute professionally, leaders need to create a culture of trust. Equip and empower employees to do their job, and then let them do it. It’s never necessary to micromanage the right people. A culture of trust also embraces mistakes and failures. As long as a worker isn’t consistently repeating the same mistake over and over (that might merit a different conversation,) we learn from our ideas that don’t work. Innovation requires the freedom of trial and error. People stick around when they’re allowed to fail.
2. Create mission focused job descriptions to keep the right people.
A job description clarifies your expectations of what you need for the role. If these expectations aren’t addressed in the job description, it’s difficult to determine whether a candidate is a good fit during the interview process.
A mission focused job description ties key duties and responsibilities to your company’s mission statement, so that everyone understands how their role directly contributes to moving the mission forward. They know how they’re making a difference by solving a problem greater than themselves.
When 8 out of 10 employees in your company strongly agree that the company’s mission makes them feel their job is important, the company can realize an 85% net profit increase over a five-year period, 25% workforce growth over a three-year period, and a 50-percentage-point increase in employee engagement over a three-year period.
Bottom line- when an employee can trace how their work contributes to a compelling mission, it encourages ownership and commitment. When an employee doesn’t understand how their role fits into the company’s mission, it’s easier for them to wander off when another opportunity crosses their inbox.
3. Chart a long-term career trajectory to invest in the right people.
A mission focused job description attracts critical thinkers that have the intellectual flexibility to accomplish the company’s mission. When you’ve hired team members that produce results, you want them to stick around and grow with the company. A healthy culture retains your people, enables them to thrive, and develops future leaders.
Once you have the right people on board, are they in the right place? What are their professional goals? If they’re a problem solver that enables you to scale and grow, it’s wise to reciprocate by investing in their professional growth.
Identify your future leaders. An impactful leader is someone that empowers others to be their best self in their role. Do others follow them? Do they attract others that share the vision? Look for opportunities for them to develop their leadership skills. Rather than saddling them with your biggest problems, challenge them with your biggest opportunities.
Vince Lombardi quipped, “Leaders are not born, they’re made.” Strong teams are made, too. And they’re made by leaders. Miranda Priestly understood the power of a strong team built by leaders: “Everybody wants this. Everybody wants to be us.” Leaders create a compelling company culture that attracts and keeps the right people for the long term.
