Your values and your companys? Why it’s important that there is alignment - and what’s the impact if there's not?

Values serve as a compass, guiding both individuals and organisations towards their goals and shaping their behaviour. While personal values stem from individual beliefs and experiences, company values are the principles that organisations uphold to drive their mission and culture. The alignment or misalignment of these values can profoundly impact workplace dynamics, employee satisfaction, and overall organisational success. This week’s article delves a little deeper into the implications of aligned and misaligned values between employees and their companies, exploring the benefits of harmony and the challenges of discord. It’s something that I’ve experienced first hand and it makes for a very uncomfortable working environment.

So what are personal values and company values?

Personal values are the core beliefs and principles that guide an individual’s behaviour and decision-making. These are shaped by factors such as upbringing, culture, education, and personal experiences, they influence how people perceive the world, interact with others, and prioritise their goals. Common personal values include things like honesty, fairness, mutual respect, freedom, and ambition.

Company values, on the other hand, are the foundational principles that define an organisation’s culture, mission, and vision. They reflect what the company stands for and guide its business practices, decision-making, and employee conduct. Examples of basic company values might include innovation, customer focus, teamwork, accountability, and social responsibility.

The Benefits of Aligned Values

When personal key values align with company values, the workplace can become a source of immense satisfaction and productivity. Employees who share the same basic values as their employer are more likely to feel fulfilled and motivated. They see their work as meaningful and are more engaged in their tasks, leading to higher levels of job satisfaction and lower turnover rates.

Aligned values also enhance collaboration. When employees and management share common principles, there is a mutual understanding and respect that encourages open communication, trust, and teamwork. This synergy can lead to more innovative solutions and a cohesive work environment.

A company with a clear set of values that resonate with its employees can build a strong, positive culture. This culture becomes a competitive advantage, attracting talent who identify with the company’s ethos and are eager to contribute to its success. Having aligned values means streamlining decision-making processes. Employees and leaders can make choices that are consistent with both personal and organisational principles, leading to more coherent and strategic outcomes.

Employees who feel that their personal values are respected and upheld by their employer are more likely to feel valued and remain loyal to the company. This loyalty translates to higher retention rates, reducing recruitment costs and retaining institutional knowledge.

What happens when values are misaligned?

Conversely, when personal and company values clash, it can lead to significant challenges for both the employee and the organisation. Misaligned values can lead to frustration and dissatisfaction. Employees may feel disconnected from their work and the company’s mission, leading to disengagement and decreased productivity.

Value misalignment often results in misunderstandings and conflicts. Employees may struggle to see eye-to-eye with their colleagues or management, leading to a lack of trust and cooperation. This discord can hinder team performance and overall morale.

Issues are also created when there is a disconnect between stated company values and the actual values upheld and rewarded by leadership, it can erode the organisational culture. This inconsistency can confuse employees about what the company truly stands for, undermining its identity and brand. Employees may face ethical conflicts when their personal values differ from those of the company. For example, a person who values transparency might struggle in a company that prioritises secrecy. These dilemmas can cause stress and force employees to choose between their principles and their job.

Persistent value misalignment often leads to high employee turnover. Discontented employees are more likely to leave the organisation in search of a better cultural fit. This turnover not only incurs significant costs but also disrupts team dynamics and continuity.

Recruiting Values-Aligned People

To encourage a harmonious work environment, it is crucial for organisations to recruit individuals whose personal values align with the company’s values. This begins with a clear and honest communication of the organisation’s values during the recruitment process. Prospective employees should be well-informed about what the company stands for and the principles it upholds.

I am always intrigued why organisations focus mainly on qualifications, skills and experience, rather than deeply considering whether a candidate’s values resonate with the company’s culture. Skills and experience can be trained and gained but if someone’s values are not aligned then it’s much more difficult to create cohesion, the starting point would be to include discussions about values to ensure alignment. Hiring values-aligned individuals helps build a cohesive team that shares a common purpose and vision.

Everyone is an individual so we’re not talking about the utopia of complete and 100% alignment on every personal and organisational value, after all, we compromise our own values at times according to our priorities e.g. freedom might be an important value along with family - sometimes these values will clash and you will need to prioritise one over the other.  The same is true for personal alignment with an organisation and vice versa.  So it’s important to know which are the most important or non-negotiable and which ones are open for compromise in order to create the right working environment for everyone.