Every company’s culture is unique.
And what makes a great culture for some, might not work for others. Each is tailored according to the type of company, its employees, as well as what their vision and mission might look like.
Why does your business need a great company culture and values?
Employees need a reason to look forward to coming into work. Not all employees are motivated by the actual work they do or the salary that comes with it.
In fact, research done by Universum found that 47% of young South African professionals indicated they were ready to move on from their current employers. They also found that job satisfaction was only a 6 out 10.
Employees need a little more motivation for full employee engagement.
Whilst they should enjoy the actual work that they do, it shouldn’t be the only thing that they enjoy about the company.
Many companies believe that the only way to drive profit is with a harsh, high-pressure working environment. This may result in an initial financial spike, but this approach seldom works. In fact, it is far more damaging to a company (and its employees) in the long-term.
If you’re looking to take your company to the next level, a great company culture is how you do it.
In this blog, we’re going to take a look at 8 powerful reasons company culture and values are good for business.
1. Employee retention
Employee turnover is expensive.
Your business fronts the costs for every employee that leaves. It then, costs you in recruitment, onboarding and training.
If you create a place where employees are more than happy to come into work every day, you are less likely to lose them. Here are some ways you can do this:
- Employee recognition and appreciation. Offer your employees sentiments of gratitude for good work done.
- Employee onboarding. The way in which you onboard new employees sets a precedent for how employees buy into your business. This can be used as an opportunity to tell your businesses story, highlight it’s vision and values and why they’re important.
- Clear expectations. Any good relationship requires clear and consistent communication, the same goes for your employees. Communicate your expectations up front or at the start of every new project, this helps to avoid mishaps and confusion down the line.
- Employee flexibility and well-being. We’re living through a global pandemic and while many employees are still working from home, it’s important to still make sure your employees are balancing their new work environments in a way that’s healthy and sustainable for them and for your business.
These are only a few ways to help reduce employee turnover, there is so much more you can do.
2. Attract talent
People talk.
And people talk a lot about how great (or terrible) the companies that they work for are.
One thing is for sure, if you have a great company culture and values that align, your employees will talk about your business.
And sooner or later, you’ll be attracting talented individuals that want to work for your company. Google is a great example of attracting high-quality talent from all across the globe, and that’s not by accident, they’ve worked hard to build a culture and develop values that honours their employees.
3. Happy and productive employees
Who doesn’t want to come in to work (or Zoom in), depending where you are in the world with a smile on their face?
A great company culture with strong values creates happier employees.
Happy employees work harder.
In fact, a study by Oxford’s Saïd Business School found that not only do happy employees work harder they generated 13% higher sales than their unhappy colleagues.
4. Increases profit
To leap into the next point, it pays to have happy employees.
In fact, a study from Queen’s University Centre for Business Venturing used data over a ten-year period of employee engagement surveys and business results to conclude that companies with a positive culture had a 65% greater share-price increase.
5. Add to your identity
A great company culture shows your employees, their immediate networks and your competitors exactly what you stand for, what you value and believe in as a company.
Your culture and values are a reflection of your company’s identity and image. If you want to show the world what a fantastic company you are, you need to show your employees first, as they are your greatest brand ambassadors. Building an identity should always start inward, to reflect outward.
6. Better teamwork
A thriving company culture builds working relationships.
That being said, it’s essential to understand the unique dynamics of your team. Each individual brings something different to the team.
It is therefore, important that as a part of your culture you nurture what it means to be productive within a team. You can do this by Identifying strengths, weaknesses and nurturing continuous team input.
We actually wrote a blog that takes a closer look at 10 different ways that can help you build a successful work team.
7. Less absenteeism
Research conducted by Occupational Care South Africa (OCSA), found that absenteeism costs the South African economy around R12 – R16 billion per year!
Human Capital Review estimates it to be an even higher R19,144 billion per year.
These numbers mean that there are around 15% of employees that are absent on any given day.
But, when you actively work towards creating a company culture that nurtures employee happiness and well-being, your employees will naturally be less stressed, happier and healthier.
The result is less sick days that cost your business money and a lot of it.
8. Stand out from your competitors
Your organisational culture has the ability to become a strategic, competitive advantage.
We’ve come to learn that culture is no longer something only HR deals with, it’s a central business topic that many CEO’s across the world are exploring in more detail.
Think about Google’s headquarters – from breakfast bars, nap pods to gyms and celebrity talks. They are recognised (and celebrated) for both their product AND their company culture.
Key takeaways:
A company’s culture will happen, regardless of whether you manage it or not.
And if you don’t build it, it will build itself.
You need to play an active role in creating a culture that creates a workplace that your employees want to be in. It is your responsibility to create a culture that’s aligned with your values.
It won’t happen overnight. But, the end goal is to hear employee statements like, “It’s not just a job” or “I love my job”.
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