How Culture Drives Growth and Profit
My previous blog post focused on three key areas that are critical to the success and growth of manufacturing: our people, our customers, and our plants. For this post, I want to expand on one of those key areas, our people. Dynacast’s employees are the reason we are as profitable and successful as we are. Specifically, the culture we have been able to cultivate over the years has been a determining factor in our success. Our culture is rooted in trust, but also in the ability to be agile and adapt to changes. With 5,500 employees spread across 16 countries, it is hard to ensure that the culture is integrated fully, but it’s something that Dynacast works hard to achieve. How do we do it? It starts before someone is even considered for an open position.
Before the hiring process begins, we make sure there is a complete understanding of what the role is, what the person will be responsible for, and what type of person best fits the role. This is not just about degrees or experience – we also look at the compatibility someone will have when working with their peers and also what motivates them. We strive to hire people who have a passion for what they do and have a vested interest in the company. The hiring process is one of many factors that help us maintain a very low turnover rate and it also gives us the opportunity to hire the correct fit not only for the position but also for the culture of the company.
What else do we do to ensure we have a strong culture? We encourage our employees to find their passion. If they were hired in a plant, but then become passionate about sales, we listen to them. We take their feedback and try to make a path for them to reach their goals. Dynacast understands that a person performs better when they are doing what that they are passionate about. It motivates the employee to perform at a higher level and learn as much as they can about the business.
Dynacast has succession and progression plans to help employees achieve their goals. I am a great example of what can occur. I started with the company over 30 years ago and followed my passions, which eventually led to me becoming CEO of the company. We constantly encourage employees to learn about what interests them and to train with others. We also encourage them to travel to other plants in order to gain as much knowledge as possible. Dynacast is committed to building tomorrow’s leaders through developing our employees, and encouraging the sharing of ideas and innovation to instill the entrepreneurial spirit.
Now that I’ve explained how our culture is built, I can discuss why it drives our growth and profits. Many leaders know that an engaged employee equals a higher performing employee, but do you know by how much? According to a recent Gallup poll, companies with high employee engagement outperformed their competitors by 147% in earnings per share. There is no doubt that employee engagement drives our growth and profits. Over the past years, we have consistently shown double-digit growth. We are on track to continue this growth rate, and within the next five years we have the potential to double in size. During this growth, making sure that our employees are engaged and our culture isn’t faltering will constantly be on our radar. Employee experience and a good culture ultimately drive the customer experience and create positive business results.
How has your business grown as a result of your culture? Do you think that it relates directly to your profits? I’m interested to hear your perspective.