Company culture is a collection of your company’s values that shapes the behavior of your employees. It sounds like a pretty simple thing, but actually, it can be very complicated.
Company culture is something that impacts every part of the business. How you treat your employees, how many talents want to join, how the workflow circulates – it’s the basis of literally everything that happens in your company. It’s basically what you can do to make your employees happy. Positive company culture makes it easier for your employees to find a purpose in what they’re doing. Without this, all aspects of your company will suffer.
A Deloitte survey says that 94% of executives and 88% of employees believe a distinct workplace culture is important to business success. And we couldn’t agree more. It’s pretty simple, actually – if your employees are happy, your company will grow. A University of Warwick study says that happy employees are 12% more productive at work. This fact was also confirmed by a Glassdoor report, concluding that being named a Best Place to Work is associated with a 75% stock jump.
So, what do these companies do to create such an effective company culture?
The answer is – they create a growth-oriented culture instead of a performance-oriented one.
A performance-oriented culture usually ignores people’s feelings, focusing too much on results. There’s no consideration for taking a break, getting relaxed, taking things slowly, and simply needing time to adapt. There’s only work.
A growth-oriented culture, on the other hand, does take people’s feelings into consideration. Companies who pursue a company culture like this are aware that making their employees happy is very important. Moreover, happy employees stay longer, and retaining them can contribute more to growth than just focusing on making results.
This is an environment where people aren’t afraid to show their insecurities, recognize their mistakes and learn from them. This is a culture that redirects people’s energy to learning instead of fighting with toxicity. Results are important in growth-oriented cultures as well, but here, failure is embraced and considered as a learning opportunity.
Why is a growth-oriented culture so important?
1. Employee satisfaction
You probably came to the conclusion that a positive company culture leads to higher employee satisfaction. Data also confirmed this. A Culture IQ study found that the work environment is one of the company culture qualities with the greatest impact on employee satisfaction.
Satisfaction at the workplace results in employee engagement. Employers who care about their employees’ happiness get a much bigger reward – engaged employees willing to dedicate themselves to work.
How to notice if employees are engaged? Cohesion in teams is high, people help each other all the time, they care about finding real solutions instead of just finishing their working hours. Employees are energized and motivated to get things done. They don’t care about getting the credit because they believe in their team.
2. Employee retention
If people are happy with how you’re treating them and what you’re giving them, they’ll want to stay longer in your company. Exciting projects, friendly co-workers, polite and understanding employers, and a good atmosphere are pretty important in employee retention.
If they feel good in your company, they will be loyal to you. Money isn’t always the main factor here.
Company culture is one of the top reasons why employees leave their jobs voluntarily. According to a study from Columbia University, companies with rich company culture have a likelihood of turnover of 13,9%. On the other hand, companies with poor cultures have a high 48,4% rate.
A great way to see if you have a good company culture is to check how many people actually want to come and work for you. The good word spreads fast. So, if your employees have been talking around about how great it is to work at your company, it looks like you’ve been doing a good job.
Positive company culture is the best strategy to attract the best talent. This will give you a competitive advantage over other companies who are after the same employee profiles. Talents can probably find better compensation packages than yours, but it’s all irrelevant if the atmosphere in the company is simply toxic.
Best talents want to work in companies that have a good reputation and well-designed company culture. They want to have freedom in their work, flexibility, and positivity. If you have this in your company, they’ll definitely come to you.
4. Business results
Engaged employees are productive employees. People who work on exciting projects with talented teammates will always be willing to give their best. This means more productive employees, faster and better working, and better business results.
In fact, companies with more engaged workers grew revenue 2.5x as much as companies with less engaged workers. Moreover, highly engaged workplaces see a 10% increase in customer ratings and a 20% increase in sales.
Isn’t it great when you make people happy? People who are part of positive cultures have smiling faces, greet everyone around, generously welcome new people. Simply have a good time at work. This results in a better mood out of working hours and a better private life.
Workplace stress is a common thing and it will always be there. It’s up to you and your company culture if you’re going to give your best to at least reduce it. According to the American Institute of Stress, 40% of employees said their job was very or extremely stressful, and 25% consider their jobs as the number one stressor in their lives. Don’t let your employees have this negative perspective of your company.
Employees shouldn’t get nervous every time they think about going to work. Instead, they should look forward to it. Good company culture makes employees happy to go back to work, see their colleagues, and have fun with them.
Work should be looked at as a challenge, not as a problem. Failure should be a new lesson, not the end of the world. Although work can be very demanding, overcoming the obstacles as a team is how things should be done.