Hibob, the London/Tel Aviv based HR tech platform has released survey findings examining the drivers and financial value of culture to UK businesses and workplaces. According to the research, today’s CEO is the leading advocate of culture in the workplace and the most likely executive to recognise its potential return on investment (ROI). The study found 73 per cent of CEOs estimate the value of culture to the bottom line or financial value of their company is between 51 and 100 per cent, with the largest proportion (20 per cent) estimating the value between 71 and 80 per cent. More than three quarters (76 per cent) of CEOs discuss culture at board level, and almost all (91 per cent) consider it a ‘make or break’ factor for their business.
The findings suggest that CEOs are often more receptive to cultural considerations than their C-Suite counterparts. CEOs (78 per cent) are even more likely to think culture is important when hiring people than CHROs (70 per cent). It also reveals tension between the CEO and other C-level decision makers, including the CFO and COO, on the importance of workplace culture and how to nurture it.
“We are seeing a step shift in many sectors on the value placed on culture in the workplace,” said Joel Farrow, EMEA MD at Hibob. “It is understandable that the CEO has become the champion of culture, after all this can only be driven from the top. However, this research shows the opportunity the HR function has to play a greater role in influencing, measuring and advising the C-suite.
“The future value of HR professionals will be demonstrated not by focusing simply on the traditional administrative elements of their role,” he added, “but by playing a key part in generating business value. Their people and culture expertise is critical as competition for talent increases and people change jobs more frequently. Modern, forward thinking HR professionals that embrace this responsibility will be able to influence positive cultural change and demonstrate their impact on the bottom line.”
Alongside CEOs (94 per cent), the majority of CFOs also lead the charge in recognising the influence of HR at board level (95 per cent). The research shows that culture is deemed not just a priority at board level, but is being increasingly discussed across the majority of UK businesses. While a difference of opinion exists across the C-suite, most top level executives do believe that culture has a direct and significant impact on the bottom line and value of a business – and is also critical for staff retention.