Corporate culture has arguably been one of the most important points of discussion and is becoming more and more of a topic moving forward with millennials comprising the largest population of the workforce today.
Studies have shown that due to companies with poor or non-existent culture there have been measurable increases in turnover as well as companies who have great culture resulted in greater productivity and happier employees.
Today, it is proving to be more of a ‘must-have’ than a ‘nice-to-have’ for a number of reasons and is becoming even more important for modern workplaces to continue to evolve.
There are only two ways to influence human behavior: you can manipulate it or you can inspire it. – Simon Sinek
A strong company culture attracts better talent and, more importantly, retains that talent. In a company that values workers for their contribution to the business, employees experience high morale and a positive attitude toward the organisation. When people feel like they belong to an organisation, they’re more likely to stick around for the long term. That means lower turnover, fewer new hires to deal with, and better chemistry among your team. Worker turnover has a high cost to a business, with increased costs for recruitment, hiring and training.
Reputation, Image & Identity
Companies with a healthy corporate culture gain a positive reputation among potential workers, which may attract talented and skilled workers to the organisation. Company culture is a part of the brand you create for your business, and it will make an impact on how you hire talent and what type of talent you attract. Job seekers look for companies that fit their lifestyles, whether it’s flexible hours, financial assistance with continuing education, casual dress codes, international work opportunities or companies boasting amenities such as on-site gyms and other company perks. Companies should share workplace culture with potential employees and cite reasons for working there. Well-defined corporate cultures often are recognised as better places to work, causing them to be known among prospective employees.
Corporate culture also adds to your brand identity. If you treat your employees well and have a fun-loving corporate atmosphere, your customers will see you as a fun-loving, generous brand. Depending on your target demographics, that could be a major boom for sales and customer loyalty.
Productivity, Performance & Profitability
Statistics show that a company’s culture has a direct impact on employee turnover, which affects productivity, and therefore success. Studies have shown that the likelihood of job turnover at an organisation with rich company culture is a mere 13.9 percent, whereas the probability of job turnover in poor company cultures is 48.4 percent.
The reason for this is simple: unhappy employees don’t tend to do more than the minimum, great workers who don’t feel appreciated quit, and poor managers negatively affect workers and productivity.
Although you don’t have to be a math whiz to understand the correlation between happiness and productivity, studies have found that happy workers are 12 percent more productive than the average worker, and unhappy workers are 10 percent less productive. In fact, unhappy employees have cost some businesses over $300 billion each year. So it literally pays to make sure your employees are happy.
Employees who are actively engaged in their job, i.e. happy, produce better results. For instance, account executives at a banking company who were actively disengaged produced 28 percent less revenue than those who were engaged.
Healthy corporate cultures encourage workers to deliver quality products and services. Companies with cultures valuing the highest standards create an atmosphere for workers to deliver products that meet those high standards. The cultural standards for excellence are an important factor for creating a product or service with a reputation for high quality.
Employees and organization members take cues from management as they form their opinions about the culture of a workplace. Once employees adopt the shared norms of a company, it unifies employees and management. Corporate culture starts and ends at the top with the business owner and upper management. The unity makes employees feel like they’re a part of a team. Entrepreneur online says this feeling makes employees more concerned for the success of the entire business, not their own personal accomplishments.
Having all the above is truly important but how do we promote these points from within the business to create this culture? Stay tuned on how to utilise tools that can help you get there!