Company culture is often labeled as the “soft stuff” in business, yet companies that take their cultures seriously see it as an investment.
The hard truth is that cultivating culture pays off. For example, in a 2018 report, Forbes found that companies with strong cultures saw a 4x increase in revenue growth. And job turnover was a mere 13.9 percent, compared to their counterparts at 48.4 percent turnover.
Why is this, though? A positive company culture impacts company success and client experience because it encourages and fosters employee motivation, engagement, commitment, and ultimately, productivity.
Many people choose the companies they want to work for based on culture. Perhaps they identify with the company values and see a good fit for themselves in that environment. That can be a strong motivating factor for taking the role and wanting to continue being a part of the team.
Motivation only goes upward from there!
When a company culture is truly embedded into the organization, employees will identify with it. Culture-focused organizations will help their employees see the impact their individual work has on the larger purpose of the organization. And when people have a sense of purpose in their work, they are more driven than their zero culture counterparts.
Engaged workplaces are 21% more profitable. And who doesn’t want that?! Employee engagement stems from culture, and when culture is strong and people feel a sense of belonging, they are more collaborative and productive. When a culture encourages people to express themselves, voice their ideas, and actively listen, they can help but feel more engaged and comfortable.
And if that wasn’t enough, a company culture that values employees naturally produces employees who value their clients. They care about the company and its clients because engagement translates into an employee's emotional commitment. They will engage authentically and go above and beyond to deliver a better client experience when they are emotionally invested in their roles.
A strong company culture leads to employee commitment and retention. If a company fosters a culture of continuous learning and personal growth, employees are able to view their career as a long-term investment and take pride in it. When the culture encourages and practices personal development, employees are much less likely to be out looking for other job opportunities.
On the other hand, when companies have a poor culture, 48% of employees will start looking for a job. And while job hunting, they’re not thinking about your company or your clients as their top priority. So not only do you lose the productivity when the job-hunting employee leaves, but you’ve started losing productivity from them long before they walk out the door for that next job.
The ultimate impact
Once a positive company culture achieves employee motivation, engagement, and commitment, the culture can then begin fostering high-performance teams and productivity. Motivated employees are committed to the organization’s goals and perform their tasks full-heartedly.
Spend a few minutes reflecting on your company culture. How healthy is it? How engaged are your employees? How committed are they to the work your company does and the clients you serve?
If you’re feeling at all uncomfortable with your answers or you simply don’t know the answers, then spend some time planning.
- Get started by writing a description of your culture today – being completely honest about the ups and downs.
- And then write a description of your ideal culture and how you would like it to be.
- Bring your team together and get honest with them about what you see today and what you’d like to see the culture move to.
When people see and feel your vision, they are much more likely to participate in making it a reality. As a team, start looking for ways to turn it around. Don’t try to tackle it all at once. Make small changes and let them become “normal.” Then make more small changes. Then a few more.
Soon, you’ll find yourself with a strong culture where people want to come to work and want to refer their friends to come and join them – the ultimate compliment to a strong company culture!
Companies who make the investment into a culture-first work environment have seen a staggering 682% increase in revenue growth! How would you like to see that added to your bottom line?
Content provided by Q4iNetwork and partners
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