Creating and maintaining a positive organizational culture is challenging, especially for small associations with limited revenue. Despite the financial constraints, building a strong culture is not just a nice-to-have—it’s essential for the long-term success of the organization.

A positive culture can lead to increased engagement, retention, and ultimately, financial success. HR leaders must strike a delicate balance between fostering a supportive work environment and staying mindful of the association’s bottom line.

Finding the Balance Between Culture and Financial Constraints

Small associations often operate with limited resources, making the task of building a strong culture more daunting. However, culture plays a crucial role in employee engagement, retention, and overall performance.

A positive culture can lead to a more motivated team, enhanced member services, and a more resilient organization. For small associations, investing in culture is not just about creating a pleasant work environment—it’s about fostering a dedicated and engaged workforce that drives the association’s mission forward, even in times of change.

Kris Ritter, founder of Holistic Human Resources, emphasizes the importance of a well-rounded approach to building a positive culture.

“In smaller associations, every individual counts, and the culture can make or break the organization’s success. It’s about creating an environment where employees feel valued and engaged, which in turn drives the mission forward,” Ritter explains.

She suggests focusing on strategies that align with both the organization’s values and its financial capabilities. “A holistic approach means considering the whole person and the whole organization, understanding that every effort to build a positive culture can have a ripple effect on the team’s morale and productivity.”

While the benefits of a positive culture are clear, small associations often face the challenge of implementing cultural initiatives within budgetary constraints. According to a report by the Harvard Business Review, companies with a strong culture have a 13.9 percent higher revenue per employee. This highlights that investing in culture can lead to financial benefits in the long run.

HR leaders in small associations need to be strategic about where to invest their limited resources. “With fewer resources, we need to prioritize initiatives that yield the highest impact on employee satisfaction and engagement,” Ritter advises.

Leverage Low-Cost Perks

Simple gestures like flexible working hours, remote work options, or employee recognition programs can significantly boost morale without straining the budget. The Gallup “State of the Global Workplace” 2024 report highlights that 41 percent of employees globally experience a lot of stress during their day. Small associations can help mitigate this stress by offering low-cost perks that enhance employee well-being.

Ritter elaborates, “Small associations can make a big impact with small gestures. Small ‘spot’ awards to cover an employee’s coffee or lunch, encouraging and respecting employee efforts to disconnect from work while on vacation or outside of established business hours, and taking the time to acknowledge employees’ hard work with verbal praise, a handwritten note, or even a shout-out in a team meeting can create a sense of appreciation and belonging.”

Focus on Communication

Open lines of communication are crucial for building trust and fostering a sense of community within the organization. The Gallup report emphasizes that workplace stress varies significantly based on management practices, with poor management contributing to a 30 percent increase in stress levels compared to unemployment. Regular team meetings, transparent decision-making processes, and opportunities for employees to voice their opinions help create an environment where individuals feel heard and valued.

“Communication is the backbone of any strong culture,” says Ritter. “In small associations, where every role is interconnected, it’s vital that employees feel they can openly share ideas and concerns. In order to build trust, leaders should actively listen and respond to feedback, prioritize transparency in their communications, and show that every team member’s input is valued.”

Develop a Mission-Driven Culture

Aligning cultural initiatives with the association’s mission ensures that efforts resonate with employees and members alike. When employees see a clear connection between their work and the association’s goals, they are more likely to feel a sense of purpose and commitment. A report from Deloitte found that mission-driven companies have 30-percent higher levels of innovation and 40-percent higher levels of retention.

Ritter adds, “A mission-driven culture serves as a guiding star for small associations. It helps employees understand the ‘why’ behind their work, fostering a sense of pride and motivation. Leaders can reinforce this by regularly communicating how individual contributions support the association’s mission. When people feel like they’re part of something bigger than themselves, they’re more likely to be engaged in their work and go the extra mile.”

Building and maintaining a positive culture in small associations is no easy feat, especially with limited revenue. By strategically implementing cultural initiatives that fit within the association’s financial framework, HR leaders can create an environment that not only benefits employees but also supports the organization’s long-term goals.