How to Measure Workplace Culture in SMEs with Harmonise HR

When employees rarely raise concerns or suggest improvements, it’s easy to assume things are going well. That silence can be an early sign that people feel uneasy speaking up or doubt their feedback will lead to action. It’s one of the workplace culture blind spots we discussed with Selanie Yarrow, founder of Harmonise HR.

In this interview, Selanie explains how SME leaders can measure workplace culture and spot issues before they affect performance or staff retention. She shares why Harmonise HR partnered with Cultiv8tiv to offer independent culture assessments and how confidential employee feedback can help leaders decide what to change, who should lead the work and how to track progress.

1. Workplace culture is often described as “how things are done around here.” How do you define culture when you’re working with SME leaders?

I often describe culture as the unspoken. It’s how you feel when you walk in the room,it’s how psychologically safe people feel. Culture is absolutely not nice words on a poster. It’s woven through everything from values, behaviour,, practices, policies,rewards,leadership and decisions. Culture is the heartbeat of a business. It shows up in the tough times as well as in the celebrations. 

2. Many business owners believe they have a good culture because people seem happy. In your experience, what are the warning signs that suggest a culture isn’t as healthy as leaders think it is?

I always say silence speaks volumes, just because nobody is raising any issues or concerns, doesn’t mean there are none. There are always improvements to be made, if people are not making suggestions or speaking up, this in itself may indicate a trust and / or confidence issue. I would also say leaders have blind spots. If you don’t ask, you will never know. 

3. You’ve said that great HR is about enabling business success, not just managing people. How closely do you believe organisational culture and commercial performance are linked?

Culture and Performance are extrinsically linked. sCulture should be a high priority on the People agenda and strategically aligned to business outcomes. For me culture should be people centred, values based and purpose driven. Our role as HR is to support the creation of workplaces where people feel safe, supported, heard, respected, valued and are supported to do their best work. Culture isn’t a one and done exercise, it’s embedded across the entire lifecycle of a business. 

4. Leadership capability sits at the heart of every successful organisation. What behaviours do you consistently see from leaders who create high-performing cultures?

Authenticity, transparency, vulnerability. Having honest and regular conversations with their teams. Truly listening, emotional intelligence and self awareness.

5. Many organisations only discover cultural problems after they’ve lost key people or performance has started to decline. Why is it so important to measure culture before those issues become visible?

Having a finger on the pulse is critical. Often issues will fester, unless people feel safe to raise issues and have the trust and confidence in leadership to listen and follow up.It’s also not just about what leaders say, it’s what they do. For an organisation to retain talent, it is important to be intentional and proactive about measuring engagement and culture. 

6. Harmonise HR has partnered with Cultiv8tiv to introduce independent culture assessments for clients. Why was having an objective diagnostic so important to your consultancy approach?

Business owners will often know something feels ‘off’ but can’t articulate what it is. Sometimes leadership within an organisation will have blind spots, and of course unconscious bias will be present. Emotional attachment to what they have grown, knowing team members, often in smaller organisations there will be family friends who may not feel able to give an honest opinion. Employees may also not feel comfortable talking to a HR Consultant, who they don’t have a relationship with and may not trust.  Having a confidential and independent review will allow the Consultant and business to work together  more effectively, as the focus will be determined by data and evidence rather than a ‘gut feeling’. It will also save cost and time ensuring the real issue(s) are tackled.

7. Once you’ve identified the cultural strengths and weaknesses within an organisation, how do you translate those insights into practical actions that leaders can actually implement?

• Behaviour – how do leaders demonstrate and role model what ‘great’ looks like. 
• Systems and processes – e.g. meeting structures, approval processes, autonomy. 
• Accountability – who is responsible for and what are the specific actions to fix the issue e.g. HR, line managers, senior leadership. 

Once the cultural insights are understood, it’s about prioritising and agreeing on commitments and measuring success. Understanding how the business will know when they have achieved what they set out. Asking for feedback. Checking in regularly. 

8. If you could change one misconception that business owners have about workplace culture, what would it be?

For me I think it would be about the perception that culture is perks in the office – pizza friday’s, free coffee, fruit bowls, gym memberships. All of these things are lovely but they don’t change behaviour and aren’t culture. They might go  so far as  wellbeing initiatives,but they don’t create psychological safety or trust, they aren’t how decisions are made or how leaders behave, or what behaviour is tolerated or rewarded. 

9. Looking ahead, what do you think will distinguish the organisations that attract and retain the very best people over the next five years?

I believe it will be the businesses that hold and live by their values, whose purpose is clear, where people understand their role and how they contribute to business success, who are rewarded fairly, treated with respect, given autonomy and the space to thrive and do their best work. Whose leaders are curious, compassionate, transparent and authentic and understand the fundamentals of people management.  Where honest and constructive conversations are had, no matter how difficult, where practices and everyday decisions foster trust, fairness, collaboration and belonging.  

10. Finally, if you were giving one piece of advice to a CEO who wants to improve productivity, strengthen leadership and build a workplace where people genuinely thrive, where should they start?

Ask people. Understand what is going on at ground level. Often I see CEO’s and senior leaders who are so far removed from the reality of the day to day running in the business. . Think about how clear people are on their role and responsibilities. What matters to them. Understand the root cause before you try and fix anything.. Then consider how you will measure success. Bring people on the journey with you. Be honest about where you are now, where you want to get to and how you intend to get there., I would strongly recommend working with an HR Consultant who can offer impartiality and objectiveness who has the experience and knowledge of People and culture change and transformation programmes. 

The CEO should also reflect on their own behaviour and style. This might be uncomfortable but people are less likely to offer feedback voluntarily to the most senior person in the organisation, and if they do, they will probably filter what they do say.