March 05, 2021 by Andrea Rajic
In the past few years, one of the hottest topics in the realm of business and HR is company culture. It is one of the pillars of every successful business and it affects everything from attracting and retaining talent, the levels of employee happiness, and the bottom line. Let’s dive deeper into why company culture is crucial and how you can build one that will make your employees happy and productive.
Company culture is a cluster of values, behaviors, attitudes, and goals shared by an organization's management and employees. It is the character and personality your company has in the eyes of employees and the wider public.
The company culture heavily impacts the following:
Company culture is gaining importance every year, likely because a growing percentage of the workforce now belongs to Millennials and GenZ. Both these generations are well known for valuing purpose more than money and choosing to work for companies with a clear mission and value set.
With the growth of distributed teams and remote work in the past year(s), company culture gained even more traction. The modern business environment has teams communicating online and living in different countries, causing shared values to be more important than ever. Organizations with a great company culture benefit from:
Companies in numerous industries (khm: tech) have been waging a talent war for some time: hiring and retaining the best talent is no easy task. With remote work gaining popularity, new challenges and opportunities arise in this field.
The entire world is now a talent pool for companies, and recruiting remote employees has never been easier. Attracting the most qualified professionals, however, is a more complex task. This is where a positive company culture plays a role - more people will want to join a company with a clear set of values and goals.
Company culture is intrinsically linked to employee happiness, engagement, and productivity. A positive culture promotes a sense of pride in one’s work and belonging, which leads to employees being happier and more productive.
Almost all companies with a well-known positive culture foster open communication and collaboration, making their teams more open with each other and willing to work together. All these factors lead to a workforce that is more engaged with their work, colleagues, and employer.
Employees around the world thrive in environments that nurture positive values and emphasize collaboration. As we already mentioned, Millenials and GenZ reinforced the importance of working for companies that provide them with a sense of purpose, not just giving them a salary.
Here are some values and activities companies should focus on to attract and retain their employees:
Evaluate your current culture. Do an audit of where your company stands regarding employee engagement, employer branding, internal and external perception. This is your baseline for the entire process.
Map out who you want to be. Start by determining your core values, creating a mission statement, and outlining what you are trying to achieve.
Get feedback from employees. Update your team with your goals and see if they feel it aligns with their passions and personal values. Build an action plan by integrating company-wide and team goals to implement the company culture.
Communicate the plan with everyone. Every employee needs to be familiar with the pillars of the company culture and how to implement them. Organize training programs and empower employees to enact the values in their every-day work.
Start hiring people based on your culture. We all know sometimes being a cultural fit is more important than having experience or high expertise levels. Make sure to actively seek, hire, and promote people who embody the organization's culture and values.
Practice what you preach. If your company culture is just a catchphrase or a marketing tool, it will be quickly noticed by customers and employees alike. If your core values are trust and transparency, promote trustworthy and transparent behaviors at all levels.