Company Culture and Why It is Important For Employees
According to a survey by Forbes, more than 90% of CEOs and CFOs said that culture was vital in their organisations. Also, more than50% of them said that corporate culture influences creativity, productivity, profitability, companies” value, and growth rates. Another study by Indeed showed that 46% of job seekers cited company culture as important when choosing a job. Essentially, organisational or company culture is vital to most aspects of any company. Surprisingly, company culture still exists whether the business owner and leaders like it.
This post explores company culture, its benefits, its effect, and how to cultivate good company culture in an organisation.
What is a Company Culture?
Company culture is also referred to as corporate, organisational, or workplace. Company culture refers to the shared values, goals, attitudes, and practices that make up an organisation and its employees.
Organizational culture manifests itself in various ways, including communication, leadership styles, workplace environment, policies, employee interaction, etc.
Why is Company Culture Important at the Workplace?
Below are six reasons why company culture is vital in a workplace:
- It defines a company/organisation’s identity
A company’s culture portrays an image the public associate it. Often people make assumptions about a business or company based on that particular company’s leadership and employee interaction.
In a nutshell, when a culture aligns with a company’s values, and the leaders and employees practice it, that company is likely to have a good image/identity for its customer or the public.
- It affects employee performance.
Often organisational culture has a significant impact on performance in the workplace. A company’s culture determines how employees perceive their work, interact among themselves, and the results they deliver.
Here are ideal examples of how organisational culture affects employee performance:
- A rich corporate culture that supports its employees lead to innovation
- A good organisational culture boosts employees’ engagement, work motivation, and job satisfaction. In return, employees perform their assigned tasks exceptionally.
- An organisational culture that supports employees enhances employee productivity.
Better performance will consequently impact a company’s customer retention, sales, and revenue.
- It impacts employee happiness, satisfaction, and turnover
According to a study, organisational culture directly affects employee happiness. Another study also examined the impact of organisational culture on job satisfaction, and the results showed that organisational culture had a significant effect on job satisfaction and turnover intentions.
A solid organisational culture at the workplace helps employers keep their best people (reduced employee turnover) because it makes them happy and boosts their satisfaction.
- It attracts talent
Often job candidates will look at an organisation’s culture before applying for a job to evaluate whether they would fit in that culture. A company’s culture is a guiding force for potential talent. In brief, a strong company culture attracts better talent and retains them.
- It creates a healthy environment for employees.
Good organisational culture creates a healthy environment for employees, thus improving the workflow and efficiency of employees at the workplace. Consequently, organisations and businesses can easily thrive.
Why Company Culture Matters (As shown by numbers and data)
- Companies with a strong culture have a competitive advantage (Deloitte)
- Culture affects every function of an organisation, from research to manufacturing to revenue. This is supported by a survey conducted on 12 companies with an adaptive culture against 20 that didn’t. Results showed that companies with an adaptive culture had 638% revenue growth and 282% employment growth, while those without had 166% revenue growth and 36% employment growth, respectively. (Training Magazine)
- Organisations with a high company culture have a likelihood of a mere 13.9% turnover, whereas those with a low company culture have a 48.4% turnover (a study by Columbia University)
- 15% of job seekers turned down opportunities because of a company’s culture (Jobvite)
What are Some Ways to Create a Good Company Culture?
Below are four ways you can build/create a good/successful organisational culture:
- Hire the right people
The foundation of building a great organisational culture is hiring the right people. In this case, culture comes first when hiring new employees. As an employer, always assess employees carefully to ensure you select candidates who align and fit your company’s culture. Culture-fir candidates are likely to adapt quickly to your company, they have the potential to be productive, and they’re likely to stay long in that particular company.
- Embrace open and effective communication
Communication is critical in building a successful organisational culture. Communication enables an employer to discuss the culture and vision of the company/business with employees.
Among the things, employers should look out for when building a organisational culture include transparency, responsiveness, listening to employees, etc.
- Take care of your employees.
Employees are a key pillar in any organisation. They play a significant role in creating and shaping the organisation’s culture. Therefore, take care of your employee, and in return, you build a great culture. Below are a few ways to take care of employees:
- Involve them in the decision-making of matters that concern them
- Listen to them and act accordingly
- Invest in them
- Have perks and benefits
- Empower them with the necessary resources and tools
- Embrace work-life balance and related policies
- Recognise employees’ achievements, contributions, and milestones
Genuine employee recognition makes employees feel valued by a company and other team members. Consequently, employees will feel secure and create a better company image, which boosts organisational culture.
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