How Can Your Company Culture Affect Outcomes and Revenue?

The goal of every business is to make money. No matter what industry or field you are in, if there is no revenue, then there is no business; it is as simple as that. The healthcare industry is no different. While many of us want to look at healthcare differently compared to other fields due to the fact that it is a field dedicated to someone else's health, it is still a business that cannot thrive without increasing revenue year over year.

While most organizations and clinics try to accomplish this by increasing the number of patients they see or offering new services, there is an untapped gem that is hiding in plain sight for most clinics: company culture. Defined as an organization's shared values, goals, attitudes, and practices, company culture sets the foundation for how employees interact within the organization and with patients.

The challenge for most organizations is that they can't see the positive or negative effects of their culture. Therefore, it is very easy to approach it as "out of sight, out of mind." That is, until your employees start to quit or show no motivation. The data tells us that companies with a strong culture consistently outperform their peers.

In fact, organizations with a positive workplace culture have a 72% higher employee retention rate (Columbia University), highly engaged teams can boost profitability by 21% (Gallup), companies with a strong culture report 2.5x higher revenue per employee (CultureIQ), organizations with a positive culture experience a 65% increase in share price over time (Great Place to Work), and high employee engagement can lead to a 10% increase in customer ratings and a 20% increase in sales (Gallup). Pretty damn good, no?

In addition, a positive company culture in healthcare organizations promotes collaboration, empathy, and a patient-centered approach, creating an environment where employees feel valued and motivated. When employees work in a supportive culture that aligns with their personal values and professional goals, there is a greater employee satisfaction with their job. Satisfied employees are more engaged, show better focus, and take pride in their work, which is crucial in healthcare settings where the quality of patient care is paramount. What does the trickle-down effect look like?

Well, satisfied and engaged employees who have high levels of job satisfaction are more likely to provide compassionate, thorough care, positively affecting patient experiences. In turn, positive patient experiences can lead to better health outcomes and increased patient loyalty.

Conversely, a toxic company culture in healthcare organizations can have disastrous consequences. Negative attitudes and a lack of teamwork can create an environment where employees feel undervalued, demotivated, and burned out. This negativity can then trickle down to patient care, resulting in poor patient experiences and potentially detrimental health outcomes.

Which experience would you like to encounter? That's what I thought. Now that we have established some of the benefits of building a dynamic culture, we have to understand how to craft that culture. However, establishing a phenomenal work culture right from a company's inception contrasts greatly with the challenge of transforming a stagnant or toxic culture. Let's find out how to do both, shall we?

How Company Culture Affects Patient Satisfaction

How Company Culture Affects Patient Satisfaction

When healthcare providers and clinics are working with patients, they all have the same general goal: to treat the patient and help them feel better. Sounds simple enough. However, it is fair to say that many of us have all had an experience where we were treated by a medical practitioner, got the outcome we were looking for, and decided to never see that provider again. Wait, what?

Why would anyone do that? Perhaps you hated the check-in process, you felt the front desk gave you attitude, or the medical practitioner had horrible bedside manners. Whatever the reason may be, now I want you to think of the greatest experience you had with a medical facility. What was the difference between the two?

Regardless of why one clinic was a turnoff for you and the other clinic was the greatest medical experience of your life, there is a great chance that it came down to the culture. Despite what you may feel about doctors and clinics, the office that has a front desk that greets you with a smile and doctors that demonstrate empathy and listen to your concerns is very different from the office where you are not greeted at all and the doctors rush you out of your visit. The difference between both scenarios has to do with company culture.

As a result, building a strong organizational culture is the foundation for a successful healthcare clinic. It directly impacts patient satisfaction, staff morale, and ultimately, your clinic's bottom line. Here's how to cultivate a culture that thrives on patient-centric care and drives business growth:

Prioritize Patient Experience:

Make patient satisfaction a core value. Empower staff to go the extra mile to ensure patients feel heard, respected, and well-informed. This will not only lead to positive reviews and online recommendations but also encourage patient loyalty. When it comes to business, patient loyalty is the name of the game.

Foster Teamwork and Communication:

Encourage open communication and collaboration among all staff members. Streamline processes to minimize patient wait times and ensure smooth handoffs between departments. Regular team meetings to discuss challenges and brainstorm solutions can improve overall efficiency and staff morale.

Invest in Staff Development:

Provide opportunities for continuous learning and professional development for your staff. This demonstrates your commitment to their growth and equips them with the latest knowledge and skills to deliver exceptional care. Happy and knowledgeable staff are more likely to provide excellent patient service, ultimately leading to better patient outcomes and increased patient satisfaction.

Embrace Technology:

Utilize technology to streamline patient care and improve communication. Let's get real: it is 2024. Then why is it that offices are still using paper intake forms and don't send paperwork to patients before their first visit? In addition, offer online appointment scheduling, telehealth options, and secure patient portals to empower patients to manage their healthcare journey. Investing in tools that improve operational efficiency will free up staff time to focus on building relationships with patients.

Empower Patient Advocacy:

Encourage patients to be active participants in their healthcare decisions. Provide educational resources and clear communication about treatment options. Empowered patients are more likely to adhere to treatment plans and achieve better health outcomes, leading to a positive feedback loop that reinforces a culture of patient-centered care.

How a Positive Work Culture Drives Clinical Revenue

In today's healthcare environment, retaining qualified healthcare workers who put the patient first presents a challenge. How many times have you said or heard someone else say the following: "No one wants to work anymore"? So, what if the answer isn't just about compensation packages but also about creating a positive workplace vibe?

As I mentioned above, research consistently demonstrates a significant link between a thriving organizational culture and a flourishing healthcare facility. It's not just about how employees treat the patients; it's also about how the culture that a company has can enhance itself through decreased turnover rates and the attraction of top-tier talent.

Happy Employees Stay Longer, Reducing Recruitment Costs

Employee turnover is a hidden cost for any business, but especially in healthcare, where replacing skilled professionals requires significant time and resources. For instance, According to a study by the Society for Human Resource Management (SHRM), the average cost to replace an employee is 6 to 9 months of their salary for a typical position. For executive-level positions, the cost can be even higher, reaching up to 213% of their annual salary. Another study by the Center for American Progress estimates that the cost of losing an employee can range from 16% of their annual salary for low-wage positions.

A positive culture fosters employee satisfaction, which leads to a desire to stay with the clinic. This reduces the need for frequent recruitment efforts, saving you time and money on advertising, interviewing, and onboarding new staff.

A Positive Culture Attracts Top Talent in a Competitive Field

Qualified healthcare professionals have their pick of workplaces. A strong company culture becomes a beacon, attracting individuals who value teamwork, collaboration, and a supportive work environment. When your clinic is known for its positive atmosphere, it becomes a more desirable destination for top talent, giving you a competitive edge in the hiring process.

Beyond Cost Savings: The Ripple Effect of a Positive Culture

The benefits of a strong company culture extend far beyond reduced turnover and recruitment costs. Happy, engaged employees are more productive and dedicated to providing exceptional patient care. This translates into improved patient outcomes, higher satisfaction ratings, and a stronger reputation for your clinic.

Wrap your head around these numbers: high levels of employee engagement can result in a 41% reduction in absenteeism and a 17% increase in productivity. (Source: Gallup). How much better would your clinic be with these numbers?

Taking Company Culture from Poor to Outstanding: A Step-by-Step Guide

As we have seen up to this point, a strong company culture is the backbone of a successful organization. However, understanding how to improve company culture from a toxic or simply uninspired culture into a thriving one requires dedication and a strategic approach. Transformation is a journey, not a sprint.

First off, culture change is massive. It's not about flipping a switch; it's about steering a ship in a new direction. And guess what? Every single crew member on that ship matters. Especially those who boarded when the waters were calm and now need to navigate through the storm with us. Therefore, when approaching the challenge of overhauling a clinic's culture, many aspects need to be considered before it can be undertaken.

Here's a roadmap to guide your company's cultural transformation:

Define Your Ideal Culture:

Determine the values and behaviors you want to cultivate. This could involve collaboration, innovation, work-life balance, or exceptional customer service. Do you want to be the clinic that goes above and beyond for patients? Clearly define these values and communicate them to all employees.

Assess the Current Culture:

Honestly evaluate your current situation. Conduct surveys, hold focus groups, or implement anonymous feedback mechanisms to understand employee sentiment and pinpoint areas for improvement.

Identify the Issues:

Honestly assess your current culture. Conduct surveys or focus groups to understand employee sentiment and pinpoint areas for improvement.

Empathy and Communication Are Key

Understand where these employees are coming from. They joined under a different set of expectations. Recognize their feelings and uncertainties about these changes. Open, honest communication is crucial here. I'm talking town halls, one-on-ones, and ensuring everyone’s voice is heard. Let them be part of the journey, not just passengers.

Open Communication and Transparency:

Foster open and honest communication across all levels of the organization. Address employee concerns promptly and transparently. Regularly share company goals and progress to keep everyone informed and invested. Implement a robust feedback loop. This isn’t about you talking at your employees; it’s about engaging with them. What’s working? What isn’t? This feedback is gold dust for tweaking and ensuring the cultural shift is inclusive and considerate of everyone’s perspective.

Employee Recognition and Rewards:

Recognize and reward employees who exemplify your company's values. This reinforces positive behaviors and motivates others to follow suit.

Invest in Employee Re-skilling and Alignment:

The goal? Alignment. But that doesn’t mean we expect everyone to fit the same mold. Offer training, workshops, and opportunities that help bridge the gap between the old and new cultures. We're investing in our people, showing them they're valued, not just for what they've done, but for what they will do. Provide opportunities for professional development and growth. This shows your commitment to your employees' success and satisfaction, fostering a more engaged workforce.

Celebrate Wins (Big and Small):

Acknowledge and celebrate successes, whether they are significant milestones or small achievements, as this practice plays a crucial role in boosting morale and fostering a strong sense of accomplishment within individuals and teams. Recognizing both major and minor successes can contribute to a positive work environment and encourage continuous growth and motivation among all members involved.

Gradual Implementation:

Introducing changes gradually provides individuals and teams with the opportunity to adapt more effectively. By implementing modifications in a phased approach, it allows for smoother transitions and reduces resistance to change. Additionally, celebrating each milestone and success achieved along the way not only boosts morale but also helps in sustaining motivation and momentum towards the desired goals.

Embrace Change Management:

Shifting an established culture takes time and consistent effort. It requires a deep understanding of the existing norms and values within an organization. Be prepared to address challenges and setbacks along the way, as resistance to change is common. Utilize effective change management strategies such as clear communication, employee engagement initiatives, and leadership support to guide employees through the transition successfully. Remember, fostering a culture of openness and adaptability is key to long-term transformation.

Focus on the Core, Not the Chorus:

Remember, not everyone will be on board, and that's okay. Focus on those who are aligned with the core values of where you're headed. These individuals will be your champions, helping to bring along the rest. And for those who can't find their place in the new culture, it's okay to part ways on good terms, with respect and gratitude for their contributions.

How to Cultivate a Thriving Culture In a Healthcare Organization

Now that we have gotten the most difficult scenario out of the way, let's discuss how to build a strong company culture from scratch. This is a unique opportunity and an exciting challenge, as you have the freedom to set the foundation for your organization's culture right from the get-go. Here are some key steps to consider:

Create a Vision:

Define your company's vision and mission with clarity, anchoring them as the guiding stars illuminating your organizational culture. Delve into the depths of your aspirations - what profound impact do you aim to make? Reflect on the strategic pathways you will traverse to realize your ambitions. Through the establishment of unequivocal objectives, you pave the way to harmonize your cultural ethos with the fundamental values that underpin your organization.

Hire for Cultural Fit:

When building a new team, prioritize cultural fit over skills and experience. Skills can be taught, but values and behaviors are deeply ingrained in individuals. Look for candidates who share your company's vision and values to build a strong foundation of like-minded individuals.

Prioritize Employee Well-being:

Invest in initiatives that promote work-life balance and reduce burnout. This can include flexible scheduling, employee wellness programs, and opportunities for professional development.

Foster Open Communication:

Encourage open and honest communication between staff at all levels to foster a collaborative work environment. Hold regular meetings to discuss short-term and long-term goals, address any challenges that arise, and celebrate team successes together. This practice helps build trust, boosts morale, and enhances overall productivity within the organization.

Embrace Teamwork and Collaboration:

Break down silos between departments and encourage teamwork. This will improve efficiency and foster a sense of shared purpose. Organize team-building activities and build structures that encourage collaboration and teamwork. Shared experiences can strengthen bonds, improve workflow, and improve team performance.

Recognize and Reward Achievements:

Implementing a comprehensive system to recognize and reward employees for their outstanding contributions is crucial in fostering a positive work environment. By acknowledging their hard work and dedication, not only does it boost morale but also ensures sustained motivation among the staff members, leading to increased productivity and overall job satisfaction.

Empower Employees:

Give staff the autonomy to make decisions and solve problems. This will increase engagement and ownership.

Engage Employees:

Help team members understand the importance of their roles and how they contribute to the organization's mission. Engaged employees are more productive and have a higher sense of belonging.

Commit to Continuous Learning and Improvement:

Cultivate an environment where feedback is welcomed, and learning is continuous. This not only aids personal development but also keeps the organization adaptive and innovative.

In the heart of every thriving healthcare clinic lies a strong, positive company culture. This cornerstone not only elevates employee satisfaction, retention, and engagement but also significantly influences the quality of patient care and outcomes. Recognizing the profound impact of workplace culture on both staff well-being and patient health is crucial for any organization aiming for excellence. It’s not merely about the immediate benefits but a long-term investment in the future success and reputation of your healthcare clinic.

Don’t let another day pass by where your clinic's culture isn't actively contributing to its success. Contact Dan Neissany today and lay the foundation for a future where your clinic not only meets but exceeds expectations in patient care through the power of a positive workplace culture.