Don’t Underestimate the Importance of Organizational Culture

Why Workplace Culture Is So Important

When one thinks of workplace culture, thoughts of happy hours and swag-filled outings with coworkers may come to mind. That said, it only begins to skim the surface of what a great workplace culture can truly accomplish. A recent study conducted by Deloitte found that 94 percent of executives and 88 percent of employees believe a distinct workplace culture is important to business success.

Here’s an overview of the importance of organizational culture and how it can be a competitive advantage in your company.

A Positive Culture = Lower Turnover

Turnover is a major productivity killer and budget drainer. In fact, Entrepreneur estimates that it costs a business approximately one-fifth of an employee’s salary to replace that employee once they’re gone. Company culture is your biggest tool in preventing turnover. Job hopping is an increasingly common trend these days, but if you are delivering on the priorities of your employees, they are less likely to seek other jobs, even if a change might result in a higher salary.

According to a PWC study about millennials in the workplace, the opportunity for development and the company’s reputation were the top two factors influencing millennials’ decisions to choose their current job. If you invest your employees with knowledge, skills, and opportunities, you won’t always lose them to competitors. Instead, you’ll build a team of employees that feel empowered to do their jobs and choose to do it with your organization. In other words, high-performance companies create environments in which employees can leave, but don’t want to.

A High-Performance Culture Drives Better Business

There are a handful of studies that point to the connection between company culture and business results. For one, happy employees lead to higher productivity (as Fast Company states, 12% more productive). For another, a study conducted by Washington State University determined that customer satisfaction is directly linked to employee satisfaction and that financial success is directly linked to customer satisfaction. And if that isn’t enough, a recent study that looked at car dealerships over a period of 6 years found that a strong culture boosts performance, but strong performance alone isn’t enough to create a positive culture.

These are just a few of the reasons why we think a focus on culture is so essential to shaping a successful organization.

Happy Employees Boost Your Company’s Reputation

It’s hard to go to a dinner party without hearing about someone’s job. We all have those friends that grumble about their job and the culture at their company. And then we have those friends who rave about their company, leaving everyone thinking: how do I work there?! These seemingly insignificant conversations (and the reactions that they elicit) contribute to your company’s reputation, which affects the loyalty and opinions of candidates, current customers, and future customers.



Yes, work culture can encompass team building and happy hours, but it carries so much more weight than these common assumptions. Organizations that invest in their workplace enjoy lower turnover, better operations, and get a boost in their reputation.

Are you ready to start investing in your company’s culture? Schedule a time to chat with us here.