Why is corporate culture important?
Culture matters. You hear it all the time, and you might even say it all the time. We don’t think anyone will argue with the statement, but why does it matter? We’ll share a few main reasons why this “soft” concept has “hard” results and why you should think seriously about investing in company culture.
Employees want a positive workplace culture; they are looking for advancement opportunities and collaboration, among other aspects of organizational culture. By addressing some of these elements, you’re investing in the commitment and success of your workforce. Engaged employees are a powerful asset, and as you’ll see, they are the keystone of the following points.
2. Financial Success
Company culture affects the bottom line. In fact, according to a Gallup meta-analysis of 1.4 million employees, companies in the top-quartile of employee engagement are 22% more profitable than those in the bottom-quartile. If that’s not convincing enough, the same study confirms that engagement can lead to improved customer interactions, meaning that your customers are also experiencing the benefits of your culture.
With reports out such as Fortune’s “100 Best Companies to Work For” and Glassdoor’s Employee Choice Awards, applicants are adding culture to their list of considerations. In fact, highly educated job-seekers are prioritizing cultural components, such as company values and growth opportunities. You’ll notice that these considerations are not perks, but instead they are aspects of organizational culture. This can be an important differentiator and a powerful tool in attracting top talent. How do you do it? Check out Netflix’s culture code for inspiration. This slide deck-gone-viral was originally published as a recruiting asset.
Investing in your company’s culture shows employees that you care. When your employees know you care, they feel higher value in their work and are more committed to their performance. This sounds familiar, because we’re talking about employee engagement again (our favorite word around here). According to a study by the Corporate Leadership Council, engaged employees are 87% less likely to leave the organization. Turnover is expensive and rough on morale, and working on your culture is one of the best things you can do to address it.
Moral of the story? Don’t take your employees for granted. Invest in your company’s culture, and you might be surprised at how powerful it really is.
Oh, and don’t worry, we won’t just leave you hanging with this big task and no tips. Keep reading this blog for ideas on how to get serious about your culture.
If you’re interested in learning more about this topic, check out our eGuide: Making the Business Case for Company Culture.