Company culture and values that are nurtured directly impact everything from performance to the way a business is perceived in the media and among the industry rivals. Some would even go so far as to say that company culture is like a fingerprint. A fingerprint may be similar to others, but it is what makes you different from everyone else. That’s true for businesses too.
This is a top priority issue since it impacts every important business aspect, including business growth, brand image improvement, and so on. Take a look below and find out why company culture matters so much.
Why Is Company Culture So Important?
Company culture has a direct impact on business success and that’s the main reason why it is so important. But there are actually quite a few, more specific reasons to place special emphasis on your company culture and you can read more about them below.
Company Culture Defines the Identity
Your company culture defines how your organization does business, how it interacts with other businesses and clients, and how the team interacts with the outside world (clients, suppliers, media).
In simpler terms, your business culture reverberates across all segments of the business, since it represents the way you do business. This also impacts the way people and customers see your business and you as its owner/manager.
Strong Culture Means Strong Performance
Businesses with a well-defined culture usually produce better results compared to those with weaker cultures. When your business culture is strong, it leads to motivated employees and high-performing managers.
Additionally, strong culture leads to constant involvement and participation by a company’s employees and can predict current and future financial performance. Simply put, employees who care will do whatever needs to be done to overcome any problems that may occur.
One of the things you can do to show your new employees that you truly care about them is to give them an employee welcome kit on their first day at the office. This is a small gift that says a lot about your company and its relationship with the people working in it, which will, in turn, motivate them to perform better.
Your Business’s Culture Impacts the Employee Experience
A strong company culture boosts the overall employee experience and can have a good effect on an individual’s decision to accept or remain in a job position.
One study has found that one-third of people wouldn’t accept a job that was a perfect match if they didn’t fit in the corporate culture. On top of that, almost half of people that were actively looking for new positions cited company culture as the main reason behind their desire to switch organizations. A great company culture supports both employee retention and engagement.
When employees are in a company culture that features many of the important drivers of engagement, such as recognition, supportive managers, and opportunities for learning and development, they are not only better positioned to perform over the long term but also more engaged and committed to achieving business goals.
Your Culture Could Spring Innovation
A business culture focused on constant learning allows people to practice and improve their creative thinking and problem-solving skills, which can result in innovation within the company.
Various individuals within the company may already be strong in these areas, but others will require training and support to acquire innovative behaviors.
Make sure that your business prioritizes and encourages innovation. Just allow employees to have their own autonomy and encourage them to be as creative as they wish to. Moreover, recognize and reward innovation efforts to motivate everyone at the office.
Company Culture Benefits
As we have already established, company culture is one of the most significant components of businesses out there. Below are listed the most important benefits that a strong company culture brings to any business.
Improved Employee Retention
Employees that are excited about their job and daily tasks are less likely to quit.
After all, the cost of losing an employee varies (depending on the position and pay) from 16 percent to 213 percent of their salary. This means that a business can save $3,000 to $8,000 per employee making $50,000 or less.
A Better Brand Reputation
It is common knowledge that the way the community and rivals see you can have an impact on your sales figures. A strong culture creates good buzz about your company in the industry and among clients and competitors.
Recruiting Better Talent
Developing a strong culture that cares about employees’ opinions makes outsiders want to be part of your company, especially in this age of remote work.
Everyone who wants to know how to scale a business of remote workers needs to learn how to improve company culture first, as this culture sets the tone and motivates employees from the very beginning, but can also bring you better workers.
When the time comes to hire new people, it becomes easier to attract quality talent instead of the same lackluster leads. In turn, hiring the right talent is vital to maintaining a positive culture as well as achieving business objectives.
Strong business culture has a well-defined mission, vision, and corporate values, which make decision-making easier. When there is a question to be answered, any employee, manager, or leader can find the answer in them.
As a result, decisions will be better adjusted to company goals, and that can increase your chances of achieving success.
Four Tips To Improve Your Company Culture
Finally, take a look at some proven tips that can help you improve your company culture.
Hire a Business Coach
Business coaching brings a number of benefits. It can not only help your business create and improve its culture, but it can also help your organization with other things.
A good business coach can help you and your employees think critically and creatively. Every now and then, it gets comfortable doing the business the way it has been done for a longer period of time, but that can lead your company astray.
A business coach will ask provoking questions that will encourage everyone to assess the situation and find room for improvement and change.
Revisit Your Core Values
Go back and evaluate your business’s core values. Make sure your core values truly align with the best parts of your existing culture, and if not, remove or adjust any values that no longer fit.
Keep your long-term business goals in mind, keeping in mind that the values you set today should still be relevant five years down the line.
Lay Down the Plans for Improvements
Once you have identified the aspects of your company culture, it is time for improvements. For instance, if employee relationships can be improved, implement more employee engagement activities outside of work.
Try to host one social event per quarter to help encourage meaningful personal connections between coworkers, and track your progress. In case you fail to meet the mark, adjust your efforts or strategy accordingly.
Track and Measure the Progress
The best way to know if your efforts are meeting your business goals and truly making improvements to your company culture is to regularly track and evaluate them. Regularly ask your employees for individual feedback, and measure employee engagement through surveys to gather data for the whole company.
Since culture evolves as your team and company do, it’s important to regularly track your progress and adjust your strategy accordingly. If you don’t track and measure the progress, you will not be able to spot potential obstacles and address them on time.
These were just a few reasons why company culture is important, how it can benefit your business, and what steps you can take to improve it. Try to use whatever you can from this mini guide to improve your own office situation.
Keep in mind that company culture affects all parts of a business. So, if you care about your business’s growth, your employees, and your clients, establishing a strong company culture should be a top priority.
Employees putting hands together -DepositPhotos