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5 Reasons Why Company Culture Matters

Sharmain Zain
Reading time: 4 min

Written by: Amanda Hurlbutt, Digital Content Editor for Educations.com 

Company culture — this buzzword has played on repeat for years now, but what does it really mean? And why is it so important?

Culture is essentially the soul of a company  —  it’s a cocktail of the vision, mission, values, goals, and day-to-day activities in the workplace. In today’s experience-centric world, people are more hungry than ever to feel engaged in their working lives, and this is something that company culture can make or break.

Read on to learn five reasons why culture should take center stage in your company!

Enhances performance

The research doesn’t lie — there’s a clear link between performance and culture. In fact, studies have shown that companies that prioritise culture and value their workforce consistently outlearn and outperform the competition.

Open, positive workplace cultures that welcome big ideas and outside-the-box thinking will spark the creativity, knowledge sharing, and collaboration essential for innovation and improvement. By putting culture at the heart of your business strategy, you’ll build more innovative teams and gain an edge on industry rivals.

Increases engagement

Employee engagement has become top-of-mind for many employers. Engagement may seem like an abstract concept, but simply put, it’s the level of passion and dedication an employee shows towards their work. As a rule, employees tend to be more engaged when they feel a sense of purpose and have opportunities for growth. Employees who are fully engaged will remain motivated to uphold the company culture and keep up productivity, which is beneficial for both performance and morale.

Since working adults typically spend 24% of their waking hours in the workplace, it’s important for your company to develop an engaging culture and make sure your employees are thriving while on the clock.

How you can boost employee engagement

  • Offer praise for a job well done
  • Encourage employees to share honest feedback
  • Assign more challenging tasks
  • Leverage employees’ unique talents and skill sets in projects
  • Emphasise communication and transparency

Promotes wellbeing

While an estimated one third of adults in the UK will experience a mental health problem during their working lives, only 53% of them feel comfortable discussing mental health with their coworkers. Despite its reputation for being a taboo, hush-hush subject, addressing mental health in the workplace can actually be a smart business move for your company. Company cultures that confront mental health challenges head-on can prevent the performance-crushing side effects of job-related stress, anxiety, and depression, which may include burnout, absenteeism, and decreased productivity.

By investing in mental health and cultivating support systems for your employees, you’ll strengthen the wellbeing of your workforce and improve performance, to boot.

 Reduces turnover

Richard Branson has said that employers should train their staff well enough that they could leave, but treat them well enough that they’d never want to. While each company culture is unique, when you invest in your workforce and acknowledge their value to the company, employees probably won’t seek greener pastures elsewhere, whether that involves shifting gears with a new career path or finding a job with your competitors.

To nip employee turnover in the bud, hiring managers should also pose interview questions that reveal whether or not each candidate will fit in with the company culture. Even questions like “How do you like to spend your lunch hour?” or “What can I expect to see when I walk by your work station at 8:00?” may be insightful enough to assess cultural fit.

Converts employees into advocates

Some employees vent about their job during off-hours, and some employees sing the praises of their employers to family and friends outside of work. Culture can mean the difference between satisfied employees who act as brand ambassadors for your company, and critical, or even ambivalent employees who are just raring to fly the coop when a better job comes along. If you’re keen on spinning culture into marketing gold, give your employees a voice, recognise their contributions, and actively reinforce the corporate mission and values. The positive word of mouth will follow, and you’ll be able to generate brand awareness and attract new talent.

Prioritising company culture pays off, and ultimately creates a win-win situation for the company and employees alike.

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