Corporate culture is an important competitive advantage for organisations. This is the conclusion according to the new PwC Global Culture Survey 2021. And as such, it is becoming an increasingly important strategic priority. However, there is a large gap between the leadership team and the rest of the human resources. This ranks culture low on the list of corporate priorities.
The study was conducted with the participation of 3,200 workers around the world
69% of the participants say that the company they work for has succeeded in adapting to the new data that have emerged in the last year. With corporate culture being a competitive advantage. Also, respondents who say their business has a distinct culture are more likely to see an increase in revenue and customer satisfaction. This is agreed by 72% of senior managers who say that culture helps to implement successful changes.
Globally, 73% of respondents who say culture is a competitive advantage say that quick decision-making has become easier or remained the same during the pandemic. The percentage of those who agree with this position increased in the US (81%), the UK (77%) and China (81%), in contrast to only 57% of respondents worldwide who say the opposite. In China, the percentage dropped to 38% and in India it rose to 68%.
The results of the global survey show a clear gap between those who report the existence of a distinct culture and those who do not. Similar differences are observed in the following areas with participants indicating greater ease or stagnation:
– Human resources consulting and development (55% vs. 41%)
– Developing/maintaining a sense of community (60% vs. 43%)
– Responsiveness to customer needs (66% vs. 57%)
– Innovation with new products and services (66% vs. 56%)
– Producing/performing as expected (63% vs. 51%)
What the percentages say
The data show that corporate culture is a low priority for HR. In 2018, 66% of frontline employees considered culture more important than strategy or business model, compared to 46% in 2021. Similarly, there is a difference in the way the corporate purpose is perceived by each hierarchical level. With 77% of senior management reporting a sense of personal connection to the company’s purpose as opposed to just 54% of other employees.
Attitudes towards diversity, equality and inclusion demonstrate the gap most strongly, with the data showing an average difference of 20% between the views of management and all other employees on these issues. The gap is growing to an average difference of 30% in the US and 35% in Japan. Similarly, the average difference in India is only 10%.
Three quarters of senior managers (71%) feel they have the opportunity to be themselves at work, compared to just 52% of middle managers and frontline workers. In the US, these percentages are 96% for senior management and 62% for the rest of the population respectively. While in Japan they reach 60% and 19% respectively.
Similarly, 61% of senior management believe that their company encourages discussion on sensitive issues. In contrast to 42% of middle managers and frontline workers. Also, 69% of senior management believe that their company embraces flexibility and responds to the needs of diverse employees. Against 51% of the rest. In India, however, the gap with senior management is the lowest, with 78% of HR believing that their company accommodates people with different needs compared to 90% of senior management.
How do we define culture?
Konstantinos Takos, Head of People and Change, Consulting, PwC Greece notes: “Culture in many organisations is seen as something that is difficult to define, that simply exists and cannot be influenced. But we can no longer ignore its impact, especially for large-scale transformations underway.
Every organisational culture contains a set of defining behaviours that can be linked to tangible results. By specifying and highlighting these behaviours as features of the organisation’s culture, we can create closer links between our teams and accelerate the changes we want to bring about in a more meaningful way.”
