The Importance of Company Culture

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An organization’s culture is so impactful, it has the potential to increase productivity, lower costs, and boost a company’s bottom line. All of these elements can lead to sustainable growth for the business. It is essential to understand the importance of company culture, its relationship to employees, and how it can affect growth.

Company Culture Can Improve Performance

Company culture specifically refers to the attitudes and values of the company and the employees within that company. A positive company culture can improve performance in several different areas, including:

  • Reputation – Companies boasting a healthy company culture can have a better reputation, potentially attracting strong candidates to be a part of the organization.
  • Employee Retention – When a company values its employees, it can result in positive morale and attitudes. This may impact employee loyalty which can, in-turn improve retention decreasing recruiting, hiring, and training costs.
  • Increased Productivity – With positive morale, productivity can increase, improving the financial health of the company.

Company Culture Can Affect Employee Satisfaction

Employee satisfaction can be based on many variables, one of which is company culture. Whether seeking employment at a small business or large corporation, many potential candidates look for companies that promote community involvement, strong values, and ethical practices. In fact, a study done by Deloitte University Press found that culture and engagement is the top challenge facing Human Resources leaders today. Providing a company culture that proves attractive to employees is important and should be a priority for organizational growth and employee satisfaction.

Company Culture Can Spur Sustainable Growth

Each company has a unique organizational blueprint that feeds into their culture, but there are common components among many businesses that promote growth, such as:

  • Company Vision – A good culture must begin with a mission statement or vision, providing a sense of purpose and offering a guide to the values of the company. With guiding clearly stated vision, all employees can work together to move the company forward in a sustainable way.
  • Company Values – The values of a company are the very core of its culture, setting a guideline for mindsets and behaviors required to achieve the company’s vision. With a company culture centered on values shared by the entire organization, a business is better prepared for organic growth.
  • Company Growth – The ultimate goal of any company and therefore any culture is profitability and growth. Culture should be focused on and geared toward these goals. After all, a positive company culture that leaves no room for confusion means that employees know what they are doing and why they are doing it. This allows them to be more productive and therefore more profitable, ultimately leading to growth of the company as a whole.

Learning the value of company culture for any business is key as you continue you to build your leadership potential. To read more about where to get started, visit Maryville University online.

Sources
/mba/ http://www.businessinsider.com/workplace-culture-is-important-2013-1 https://hbr.org/2013/05/six-components-of-culture http://quickbase.intuit.com/blog/the-importance-of-a-strong-corporate-culture https://www.entrepreneur.com/article/247522 http://smallbusiness.chron.com/importance-healthy-corporate-culture-20899.html http://hbswk.hbs.edu/item/the-profit-power-of-corporate-culture