Company culture is crucial for any organization’s success. A strong culture not only aids in attracting and retaining top talent but also enhances employee engagement, ultimately giving the company a competitive advantage in the market.
What does the company culture involve, and why is it crucial? And what strategies can your organization employ to cultivate a corporate culture that yields positive outcomes?
Let’s delve into the essentials of company culture and explore effective methods for building workplace culture.
What is Company Culture?
Company culture encompasses shared values, attitudes, behaviors, and standards shaping the work environment. It defines the day-to-day experience at a workplace and aligns it with the external brand and messaging of the company.
A healthy culture also ensures alignment between the company's vision, core values, and their manifestation in the workplace.
The Significance of a Positive Company Culture
According to a Deloitte survey, 94% of executives and 88% of employees consider a unique workplace culture crucial for business success. It results in engaged, committed, and enthusiastic employees, from new hires to the leadership team.
Why? Because in a healthy culture, there are clear expectations regarding how work is conducted, the significance of that work, and the expected interpersonal dynamics within teams.
The Impact of Company Culture Success
A recent Jobvite survey revealed that almost 81% of workers consider company culture "somewhat" or "very important" when applying for a job.
Investing in building culture at work brings both short-term and long-term benefits. Discover a few examples below.
Boosting Employee Engagement and Satisfaction
According to Deloitte, a positive workplace culture boosts employee engagement and satisfaction. Additionally, Gallup reports that engaged employees are 17% more productive and experience a 41% lower rate of absenteeism compared to their less engaged counterparts.
That’s why creating a supportive environment is key.
If you need help, here’s our guide to implementing employee recognition programs. You can also learn more about the employee engagement ROI here.
Attracting and Keeping Top Talent
Building a positive workplace culture is one of the most important steps to keep your employees engaged and satisfied.
New studies show that 47% of job seekers cite company culture as the driving reason to look for a new job. Additionally, an Employee Retention Report by TINYpulse reveals that employees unhappy with their company culture are 24% more likely to seek other opportunities within a year.
So, if you want to appeal to top talent (and keep your current employees), building a supportive and inclusive environment is a great way to start.
Positive Work Environment = More Productivity
A positive work environment directly correlates with increased productivity. A good company culture contributes to constructive work relationships, enhancing employees' satisfaction with daily tasks.
On the other hand, a lacking company culture can negatively impact employees:
Higher stress levels: Working in a toxic culture increases stress levels, leading to negative outcomes. Research from Stress.org shows that over half of employees miss between one and two days of work annually due to workplace stress, with 31% missing between three and six days.
Decreased engagement: A toxic culture causes a sharp decline in employee engagement, resulting in adverse consequences for both individuals and the business. Recent research reveals that disengaged workers have a 37% higher absenteeism rate. This results in 18% lower productivity and 15% lower profitability.
If you want more insight into the importance of an adaptive workplace, you can learn more here.
Signs of a Healthy Company Culture
A healthy company culture is diverse and can take various forms. While there isn't a one-size-fits-all solution, here are some universal elements of what a healthy culture looks like in practice:
Fostering an environment that encourages working together.
Acknowledging employee accomplishments, successes, and contributions, and rewarding them.
Ensuring consistency between company language, values, and actions.
Providing opportunities for employees to grow and develop in their careers.
Offering competitive compensation and solid employee benefits packages.
Establishing a sense of trust, transparency, and accountability between employees and leadership.
Supporting workplace flexibility for enhanced work-life balance.
Promoting a healthy balance between work and personal life for employees.
Cultivating a culture of compassion and respect for all employees.
Creating an environment where employees feel safe to express ideas and take some risks.
Fostering a diverse and inclusive workforce that values individual differences.
4 Steps to Building Organizational Culture
By now, there should be no doubt about the benefits of a solid corporate culture. So, let’s now delve into how you can build that positive culture in your company.
1. Define Your Company Values
The foundation of your company culture lies in its values. These values shape how people interact and set expectations for work. Begin the culture development process by sitting down with your leadership team to define your company's values clearly.
Whether it's sustainability, respect and transparency, kindness, equality, innovation, or perhaps integrity, honesty, and fairness – defining these values from the start establishes the core of your company culture.
2. Establish Goals
You most likely set goals for various aspects of your company. Now, do the same for your company culture!
Consider your corporate values and envision how these values can be embodied in your culture – and then translate this vision into tangible goals.
For instance, if diversity is a key value, set goals for inclusive practices.
This may involve increasing diversity hiring by 50% within the next six months or elevating the representation of women in leadership roles. Establish goals for inclusion and belonging, such as raising the retention rate of diverse employees.
While culture encompasses various aspects and goals, it becomes actionable when specific objectives are in place. Thus, define clear goals that align with the culture you aim to cultivate.
3. Gather Employee Input
Your employees are the primary beneficiaries and contributors to your company culture. To create a solid culture that attracts and retains top talent, simply seek insights directly from your team.
Initiate employee surveys to collect feedback on their perceptions of the existing culture and areas for improvement. Encourage them to share their visions of an ideal corporate culture. Then, utilize this valuable feedback to shape your organizational culture strategy.
By incorporating employee perspectives, you can build a culture that aligns with both company goals and employee preferences.
It's a win-win, really!
4. Integrate Culture into Daily Work Experience
Given that company culture is fundamentally about the day-to-day experiences within your organization, it's crucial to strategize how to manifest this culture in the daily work environment.
Consider the example of a culture centered around diversity. This could involve offering paid time off for cultural or religious holidays – even those outside the typical holiday schedule.
Similarly, for a culture emphasizing work-life balance, you might implement a communication policy that respects employees’ time, signaling no expectations for work-related emails after 6 pm or on weekends.
Your company culture shapes the daily experiences of your employees. So, when evolving your culture, devise a plan to seamlessly integrate the new elements into the day-to-day work environment.
In Conclusion…
Developing a positive work culture is an ongoing effort that requires dedication from managers, HR teams, and all employees.
Yet, the benefits are substantial: lower turnover, reduced costs, increased productivity, and boosted morale.
With this guide, you can step closer to achieving a workplace where employees flourish, contribute meaningfully, and drive collective success.
About GoGift
GoGift, a leading global provider of gift card solutions, specializes in offering innovative and versatile gift card services to over 15.000 corporate clients worldwide. With a commitment to simplifying the gift-giving process, GoGift provides a broad range of gift card options from numerous popular brands, catering to a diverse array of tastes and preferences. Their services are designed to enhance the gifting experience, making it more convenient, personal, and enjoyable for both the giver and the recipient.
For more detailed information about GoGift, please visit their official website: https://www.global.gogift.com/