Company culture refers to the shared set of values, goals, attitudes and practices that make up an organization, and this workplace environment can encompass a variety of elements. This includes fundamental corporate aspects such as leadership style, communication, expectations and company objectives. According to a study on company culture from Built In, the average American will spend one-third of their life at work, so companies shouldn't underestimate the importance of creating a healthy work environment for their employees. There are several reasons to improve your company culture as it continues to span far beyond the environment created in a corporate setting, affecting every aspect of the business.
1. Improves brand identity
Brand identity represents the company's public image and reputation, which ultimately affects every facet of the business. Consumers often make decisions based on how they perceive these brands, and they are more hesitant to be involved with businesses that are portrayed poorly. Weak company culture makes it harder to appeal to consumers and potential employees when the company's objectives and values are unclear.
2. Transforms employees into brand advocates
Strong brand identity and workplace culture are fundamental to transforming employees into company advocates. Creating an environment of support and learning, as well as recognizing employee effort and success, can give workers a sense of accomplishment. This results in employees understanding the core values of their company, which converts them into advocates for the business they now believe in.
3. Attracts and retains talent
According to an article on employee engagement from Deloitte, not only do job seekers actively consider a company's culture before accepting an offer but companies that manage their culture boast 40% higher employee retention as well. Attracting employees and decreasing turnover is more important than ever in the current labor shortage and ongoing workforce battle for talent.
4. Increases employee engagement and productivity
In the age of increased employee burnout, fostering a positive environment for employees is highly beneficial for both workers and the company. A study from Denison on organizational culture and employee engagement reports that organizations with strong cultures achieve 72% higher employee engagement rates than those with weak cultures. Higher engagement is directly linked to better employee performance and productivity, as well as improved operational efficiency for the organization.
5. Creates a healthy team environment
When it comes to corporate culture, engagement, performance and profitability go hand-in-hand, but its purpose is more than improving the efficiency of the business. Increasing engagement requires an equal focus on organizational communication and employee well-being. Fostering successful teamwork and improving employee morale demonstrates a company's strong values while improving production and performance as a result.
6. Helps your business stand out
A 2021 study from TeamStage shows that company culture is an important factor for 46% of job-seekers, and 86% of these candidates actively avoid companies with bad reputations as well. Companies that actively create positive environments for their workers are more likely to stand out in the job market.
While the labor shortage and war for talent continue, the value of strong company culture will continue to increase. Focusing on fostering a healthy workplace culture of support and learning will be essential to attract and retain employees, as well as increase engagement, productivity, and profitability moving forward.