The words “company culture” have become somewhat of a buzz-phrase over the past few years. What does it really mean, and why is it so important to develop a successful company culture? “Company culture’ is basically the shared values and beliefs that the organization’s leaders/owners develop and message to employees using various methods.
Your culture should represent what the company stands for. Not just on an esoteric level, but also how decisions and various motivating factors allow the company to progress.
A Thriving Corporate Culture Helps Your Business’s Future
Developing a thriving company culture can have many benefits for your business and its future. It provides a specific identity that helps in setting a direction that employees can follow. For example, suppose your company believes in a respectful workplace: Employees will tailor their behaviors and actions to align with this core principle.
A Successful Company Culture Attracts Talent
A thriving company culture attracts excellent, motivated talent. Further, it retains these employees for the long haul. This results in the company saving time and money. If employees at a company are the best and brightest (and choose to stay), that means less money being spent on hiring new talent. It also provides a much better collegial environment, as employees will experience less change within their teams, which can hurt productivity.
Creates a Positive Company Image
Another significant reason for developing a thriving company culture is the image it portrays to customers and future potential business. The corporate culture can actually boost the identity of a business’s brand. For instance, let’s say your company culture is known for being light-hearted and caring. Every month you book a comedian for the employee “Monthly Fun Meeting.” Employees and customers alike will see your company as a fun, generous brand that treats its employees exceptionally well. This could result in higher sales as customers will be attracted to your fun-loving, positive brand.
Company Culture Helps Identify Trends
Company cultural is becoming so important that CEOs and business executives are seeing a trend between poor cultural environments and increased employee turnover, not to mention a decrease in sales. The heads of corporations are realizing that to be a significant player in today’s highly competitive market, an outstanding company culture must be present.
Employees need to feel motivated with what they do, how they do it, and why they do it. A company that is not taking the time and money to invest in increasing morale through its company’s culture will be in for a rude awakening. If it does, however, the correlation looks something like this:
Time and Money invested in excellent company culture lead to better: employee attraction/retention, boosted morale, more motivation, higher sales/more customers, increased profits, and contributes to much improved employee happiness. This might seem like a simple approach to such a common subject.
However, it works. Recognizing the importance of employees and how they maintain their part in a successful company culture is vital to business success. Acknowledging individuals who exemplify the culture’s core values can serve as a reminder that the business is on the right track.