Many people view company culture as what people wear to work and the fun activities which the company hosts on occasion. But this is only a small part of company culture.
The company culture is the identity and personality of a company. It is made of a number of elements: the work environment, the company mission, the core values, ethics, expectations, and goals. These all contribute to your company culture. It is also important to know that your company culture exists whether you have designed it or not.
Many entrepreneurs may wonder why does it matter what your company’s culture is, but it can have a substantial effect on your bottom-line. Here are four areas which are affected by your company’s culture and which have a knock on effect on your bottom-line.
1. Employee engagement
When a company’s culture is unhealthy then the employees will be doing the bare minimum to keep their job. They will only be focused on achieving their own individual goals. There will also be an unhealthy competitive atmosphere in the company.
If a company’s culture is healthy then the employees will be engaged in their jobs and will want to go above and beyond to achieve the company’s and their individual goals. They will enjoy working collaboratively and enjoy the camaraderie of the team. This will also ooze over into how your employees deal with customers as they will be happy and willing to make sure your customers’ experiences the best of your business. Another advantage of a great company culture is that your employees will be excellent brand ambassadors for your business.
2. Employee retention
Employees who feel appreciated and valued by their company experience high morale and a positive attitude to the business. This will translate into them being loyal to the company and decreasing the overall employee turnover. If employee turnover is high, then the cost of recruitment, hiring and training increase therefore it is important to also ensure that the employees share your values and beliefs when they are hired.
3. Brand reputation
Many businesses have their core values and beliefs published on their “about us” website page. But do they carry these beliefs into the everyday operations of their business? If your business does walk the talk then your reputation in the industry will improve. People will be attracted to your business because they share the same values as you and want to do business with you. The other advantage is that your competitors will have to up their game if they see that your culture is boosting the sales in your company.
Employees who enjoy the corporate culture of a company and believe that they are working to a greater cause are more productive. If employees are more productive then the business is able to make more sales which in turn creates more profit.
How do you improve your corporate culture?
You can improve your corporate culture by valuing the opinions of your employees and respecting your employees no matter what job they fulfil in your business. The next step is to listen to how they refer to your company. Do they use “They/them” or “we/us”. If the employees use “they/them” then you need to assess why they don’t feel part of the team and if they are not a good cultural fit, then they may need to move on to another company. You can also improve corporate culture by creating bonding rituals. These are events at your company which encourage your employees to bond. It could be a sporting event or a weekly meal. These occasions help employees to get to know each other outside of the corporate environment.
By implementing some of these methods, you will improve your corporate culture and in turn improve your bottom-line.
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