What Is Culture in Business and Why Is It Important?
What Is Culture in Business and Why Is It Important?
In a recent survey, 77 percent of workers said that they considered a company’s culture before accepting a job. Another 56 percent even said that they felt that a healthy company culture was more important to them than salary when it came to job satisfaction. So what is this company culture idea, and why is it so important for your business?
Culture in business is an embodiment of how your company interacts with its employees and how they interact with each other. Read on to learn more about work culture and why it’s important for your business to develop a strong workplace culture.
What Is Business Culture?
Before we dive into why work culture is important, let’s talk some about what it is. Work culture is your company’s internal “personality” – the side of your business that your employees see. This can include everything from your workplace policies and procedures to how your management team handles annual reviews and more.
In general, your culture springs from your company’s stated values and mission statement. The culture of your company can determine everything from who you hire to how long they stay. It can also help to attract the sort of talent you need to keep your business growing and thriving.
One of the biggest things a strong company culture can do is help to improve your team’s morale. Toxic work cultures make employees feel overworked, unappreciated, and trapped. They may not feel like they can talk to their managers about their concerns, and they may not be getting the support they need to do their job well.
On the other hand, a positive company culture can help your team feel supported and satisfied in their jobs. They’ll know that, when issues do arise, they’re safe talking to their managers about ways to fix these problems. And the additional positivity in the workplace will keep spirits high and employees happy.
Employee retention is a critical metric for any business that wants to stay competitive. For one thing, high turnover rates can be very expensive, since you have to spend all the time doing a job search and training your new employee. It can also be hard to attract the kind of talent you want if your company starts to get a reputation for having a bad culture.
But when you improve your workplace culture, employees want to stay and work for you. They’ll be happier in their jobs, which makes them less likely to start looking for other opportunities. And word will get around that your company is a great place to work, which can help to attract more talented new recruits.
Aside from making your employees more likely to stay in their jobs, better morale can also help to increase your productivity. When employees are unhappy, they’re likely only going to do the bare minimum required to keep their jobs. If you aren’t going above and beyond for them, why should they bother doing the same for you?
Some studies have shown that businesses with highly engaged employees tend to be about 21 percent more profitable than companies that don’t.
Engaged employees are about 17 percent more productive. They tend to have absenteeism rates about 41 percent lower than unengaged employees. When your company culture is strong and healthy, your employees will be more motivated to work hard and deliver stellar results.
Embody Your Company Values
When you first started your company, chances are, you sat down and wrote out your company values. You decided what you wanted your company to represent in the world and what sort of ideals you wanted it to embody. Your company culture is where those values can come to life every day.
If one of your company values is integrity, your employees and management teams will need to believe in personal integrity. If you value honesty and accountability, your team will need to know that they can be honest without fear of retribution and that everyone will be held accountable for their work.
If you want to make those values a reality, rather than lip service, that has to show in your company culture.
It may sound strange, but having a strong business culture can help to strengthen your branding. Your branding is your company identity, and that extends all the way into your internal workings. Your company culture should be an extension of your branding and vice versa.
If your culture doesn’t match your branding, your company can come across as disingenuous. Your customers may have a very different experience with your employees than your branding would seem to suggest. But if your culture embodies all the values of your branding, you’ll create a cohesive, valuable experience for your customers and your employees.
Learn More About Culture in Business
Developing a strong culture for your business is critical if you want to grow and stay competitive. A healthy culture in business can improve your employees’ morale, increase your retention, and encourage greater productivity. Your culture is also an opportunity for you to strengthen your branding and embody the values your company holds dearest.
If you’d like to learn more about culture in business, check out the rest of our site at Bradford Jacobs. We consult, implement, attract, engage, onboard, and induct the best employees for your business regardless of their geographic location. Contact us today and start making remote working a reality for your company.