10/05/2023

Culture as a Competitive Differentiator

Culture as a Competitive Differentiator Drives Employee Retention

The secret to navigating uncertainty in the distribution industry is creating a company culture that enables employees at all levels to recognize and respond to new opportunities and threats quickly.

If distribution executives can keep employees engaged and committed, employees at all levels of the company feel more comfortable speaking truth to power. This is a very effective tool for employee retention.

If all employees know what the top three strategic objectives of the company are … and people can see what’s going on and understand it, they’re going to recognize and see these changes, recognizing opportunities and threats in the face of changes in the industry. The people closest to the work will always know more than the hierarchy.

If a company culture enables an employee to raise a concern or suggestion to the point that leadership takes action, that is what will set a company apart in periods of uncertainty.

Transitioning to a Collaborative Employee Culture

Creating a company culture where employees are encouraged and empowered to share ideas starts with transparency. “It’s not ‘Do what I say,’ it’s ‘Here is what we’re trying to accomplish.’”

For distribution companies that have historically been in a command-and-control management structure — but are looking to cultivate a more collaborative environment — leadership can explore ways to give more autonomy to the employees.

It’s not the motivation posters. It’s not the foosball table or any of that other stuff. It’s how people are treated.

Source: Modern Distribution Management