One of the secrets to a successful business is a great company culture. Today almost three-quarters of CEOs highlight culture as a top factor that positively influences financial performance — up from 26% in 2021. A strong culture can positively impact engagement, retention, productivity, and business performance. 

A Good Company Culture Impacts Financial Performance

One of the many things I’ve learned after 15+ years in business is the power a company’s culture can have on its financials. Highly engaged employees can lead to a 202% increase in performance. And with the latest data finding one in five businesses fail within the first year, it’s never been more important to put people first to elevate business success.

There is no doubt that running a business is challenging and requires discipline, time management, and attention to detail. However, if you shift your mindset and look at it as an investment in people that will pay off financially – the research proves it – then you will realize it is also worth the time and investment to create a thriving culture. My suggestion – schedule events throughout the year to show employees appreciation. But do it in advance and make these events as important as if you were meeting with a top client.  We all know that scheduling time to focus on team building can get deprioritized and often falls off the calendar. As leaders in business, we can change this and set a tone that puts people first and creates a healthy culture.

At Redwood Services, I always remind our managers and leaders: You never have to ask permission to spend money on your team. And I mean it — because prioritizing people drives business (and financial) success.

Team Building Supports a Thriving Company Culture

What is the best way to create a thriving company culture? Team-building activities are a great way to bolster your company culture. Activities should be booked in advance and set in stone to avoid rescheduling when “more pressing” items come up. My team found that planning and putting events on the calendar every December for the following year is the best way to go — especially when including partner companies. 

Below are culture-building events I’d recommend getting on the calendar now for 2024:

•    Annual Holiday Party 

The holiday party is an obvious one, but it can get lost in the shuffle or pushed off. Don’t let that happen. Holiday gatherings are important and a great time to connect at the end of the year. They also provide a non-threatening setting to get to know people outside of the formality of the office.

•    Regular All-Hands Meetings 

Quarterly or bi-annual (at a minimum) meetings to celebrate wins, share results, and recognize employees for their hard work are crucial. Regular meetings help you stay connected to teams, champion their work, and keep a finger on the pulse of the business. If these meetings aren’t scheduled in advance, I find that they just don’t happen.

•    Off-Site Management Meetings

Host off-site meetings for management and leadership twice a year. This allows the team to break away from day-to-day operations and focus on strategy — these can be very powerful sessions. What’s more, leadership will walk away inspired to take initiative and do their part to achieve the business’s goals. And that creates culture.

•    Family Picnic Days

Like the holiday party, family picnic days are another way to show appreciation and bond with your team. We like to play lawn games, set up a volleyball net, and relax together outside the office. Bringing the entire family – including kids – into the mix helps create a different kind of culture. 

If you’re already holding these types of events, keep it up! For those who need a little help getting events on the books, my advice is to schedule now (even for events a year out) and start planning later. Your team will feel appreciated, and your business will benefit in the long run. 

And remember, if you’re having trouble getting employees to attend culture-building activities, the problem is the culture — not the activity. There is a deeper issue. If you find yourself ‘behind’ with culture, to the point where you are afraid people won’t come to a summer picnic, start with events that take place during work hours. Where you — the business owner — are paying for it with your own time. Another option is to plan events that are family-friendly and when planning, it should be more fun for the family than the employee. If the spouse and children are actually excited by the activity, they will be pushing their spouse to attend.

In an industry as competitive as ours, connection is everything. I believe this to be true and the awareness has helped me create a supportive and productive company culture. Nothing is more powerful than bringing like-minded, motivated employees and leaders together to bond as a team. It goes a long way to creating a culture that accelerates business success – bottom line, putting people first is paramount.   

Richard Lewis is the CEO and Founder of Redwood Services – an investor in residential HVAC and Plumbing companies. Before forming Redwood, Richard spent 12 years in a variety of operating and leadership roles at The ServiceMaster Company, working with iconic service brands, including Terminix, TruGreen, Merry Maids, and more. Richard began his career as an Analyst at Bear Stearns with an MBA from Emory University and earned his B.A. in Business from Yeshiva University. Learn more about Redwood Services: https://redwoodservices.com