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The old adage “money talks” doesn’t ring as true as in the past. While a good paycheck still carries its weight in the workplace, competitive salaries have become just one item on a growing list of employee expectations. Today, it’s values that speak volumes to your workers, driving growth in the long run.
Our recent “Work Futures” study documents this shift. In our research, we found a direct link between shared values and employee satisfaction, commitment, and retention—all of which can contribute to positive organizational performance over time.
Establishing a values-driven culture is more critical than ever. Let’s explore why and how companies can promote strong cultural alignment across their organizations.
What Makes a Values-Driven Culture So Important?
When a company’s values are clearly defined and deeply ingrained in its operations, they serve as a compass guiding decision-making at all levels. No matter how tangled or murky the road ahead gets, your employees have the tools needed to act in alignment with the company’s goals and vision. This fosters a sense of unity between all members of the team as they move forward together.
With this sense of true north, employees also grow passionate about their work, take pride in their contributions, and stay committed to the company for the long term. In fact, our Work Futures report found 22% of workers rank “values/soft skills/cultural fit” as the most important factor employers should consider when hiring new employees. Yet some employers are quick to rank cultural fit as having lower importance.
Why the dissonance? Leaders often focus on hard skills, experience, and measurable performance metrics. This approach can certainly boost profitability in the short term—but without values alignment, employers may struggle with higher turnover and lower engagement, hurting their bottom line.
The Role of Core Values in the Workplace
The power of core values is evidenced by countless successful companies. For example, Patagonia founder Yvon Chouinard emphasizes the company’s patience in finding employees who already share its values of environmentalism and quality. By building a values-driven culture, the company has strengthened its profitability and longevity—lasting for more than double the lifespan of the average corporation—with an ethical reputation.
At Dexian, we’ve experienced similar success by following where our values take us. We continuously frame our decision-making around five foundational principles:
- Integrity
- Authenticity
- Transparency
- Empathy
- Ingenuity
Our approach to AI offers one example of how our culture enables superior customer experiences. Our experts are continuously innovating new artificial intelligence solutions for our clients—demonstrating our ingenuity—but with every step, our values also inspire us to ask this reconfirming question: “Are we doing the right thing?”
By considering AI ethics and how the technology can transform lives, we have helped clients mitigate risks while strengthening our relationships with each one.
Implementing a Values-Driven Culture
A values-driven culture starts with the commitment of leaders. When leaders embody and consistently reinforce the organization’s principles, they set the tone for the entire company—and those values can be integrated into your daily operations.
Many organizations have a long way to go. Our Work Futures study shows:
- Only 47% of workers agree that their employers measure employee sentiments regarding their success or failure to live up to the company’s values and culture.
- Only 50% agree that their employers have built a value-based culture by using employee surveys and data to identify what is important to them.
- Only 43% say they underwent values or culture assessments for their current job.
Taking this data into consideration, companies can take a number of initial steps to strengthen values alignment and employee buy-in:
- Prioritize culture-fit interview questions in the hiring process to ensure a natural alignment with your team.
- Establish performance evaluations that go beyond technical skills and outcomes, focusing also on how well employees and leaders embody and live the company’s core values.
- Offer ongoing training and development programs that reinforce these values, helping employees internalize them and apply them in their daily work.
- Create recognition and reward systems that celebrate individuals and teams who exemplify your values, reinforcing the importance of cultural alignment.
Measuring the Impact of a Values-Driven Workplace
Accountability is critical for establishing a values-driven workplace. An effective culture should actively influence employee behavior and contribute to measurable key performance indicators (KPIs). Tracking the following measurements using data, surveys, and other feedback collection strategies can provide telling insights about the progress of your organization’s values alignment:
- Employee net promoter scores
- Employee retention rates
- Employee engagement rates
- Performance metrics, like revenue per employee or productivity rates
Apple offers a great example of measurable, values-driven success. The company has established a range of reports that track progress across each value, keeping employees and leaders accountable for growth in these key areas.
Overcoming Key Challenges
The path to building a values-first workplace isn’t without its challenges. Companies often encounter resistance, particularly when existing practices and behaviors are already deeply ingrained in the workforce (and contrast with the direction you want to go). Inconsistent adoption can also dampen the effects of a values-driven culture.
Leadership training is crucial to effective implementation. Equipping executives and managers with change management skills, as well as resources to strengthen communications around core values, can help with integration. Including employees in the values development process—whether you’re starting from scratch or crafting new initiatives to fuel your culture—can also foster a sense of ownership and organization-wide commitment.
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