Company culture refers to the shared values, goals, collection of beliefs, and behaviors that characterize an organization. A successful and valuable company culture can potentially change the way your business or organization functions.
But how does it affect your business and is it essential to business success?
How does company culture contribute to business success?
Company culture contributes to business success by having a positive influence that results in employees being more motivated, mindful, and satisfied with their workplace which makes them more likely to be present. This follows up with low costs of recruiting as well as supporting the company’s continuing procedure for operational planning.
According to Deloitte’s survey on “Core beliefs and culture, Chairman’s survey findings”, having committed and motivated workers is the top aspect that significantly leads to a company's growth, as claimed by 83 percent of executives and 84 percent of employees.
The importance of mindfulness in your workplace is that it helps decrease work-life tension, an increase in job satisfaction as well as an obvious ability to concentrate and easily stay focused. The Journal of Occupational Health Psychology conducted a study recently regarding the importance of mindfulness in the workplace showing that it is a technique recommended to accomplish goals and, above all, business success.
Corporate culture possesses the capacity on how your organization does business. How your team communicates with one another as well as the way they correspond with the outside world, primarily with clients, staff, associates, media, and all other stakeholders. Some might think that company culture is overhyped, however, it is an important and necessary asset to achieve strong results. Furthermore, it provides guidance for employees and consumers, boundaries and expectations, in order to attract and recruit the highest level of talent to your market.
Benefits to a positive and strong culture
Strong company cultures tend to have higher ranking results in contrast to weaker cultures. Here are some benefits to a strong culture:
When employees are satisfied and happy in their work environment they will want to give their best efforts and that results in a productive workplace.
Better Decision Making
Strong companies with strong cultures have a well-defined and structured mission and vision which aligns with the company’s goals and values. This makes decision-making easier for employees, therefore, increasing the chances of success.
A good reputation will have a positive effect on your company. When customers know that a company is trustworthy, treats its employees well, and has good services, they will support it. A positive reputation is immensely desirable, and happier workers are the ideal way to establish one.
Stress is a major issue of a bad cultural fit at work, and it affects a variety of aspects of an employee's life, from work success to socializing with coworkers. A strong cultural fit ensures that the employee will feel less distracted at work, which will undoubtedly lead to better results and lower turnover.
Recruit Better Talent
Outsiders will want to be a part of your company if you intentionally create a strong community that respects and values employee input. This way when the time to recruit comes, it will be easier to find great potential candidates. It is important to hire the right people in order to maintain a healthy and positive atmosphere as well as meet objectives.
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What are the factors that shape a company culture?
Understanding the factors that shape and affect company culture as well as being able to identify them can be a valuable skill to have. The main key to having a successful business is a culture that represents shared values, goals, policies, and practices of an organization that are based on structure and strategy. There are many factors that help shape an organization's culture:
The organization's leadership team runs the business and this affects the policies, procedures and regulations of that organization and its employees. Leaders will have an impact on the people and the company’s culture because they serve as the basis for an organization's conduct standards and its participants. Not only do they have an impact on employees but they also serve as influencers and role models for the employees of the company.
Using identified leadership principles, you recognize the importance of mindfulness in your workplace, leadership in your organization, and the core values and beliefs of your business. The core values and beliefs of your company demonstrate what your business stands for and believes in. In a way, core values are a collection of requirements that can be easily accepted and valued by the general public.
The Nature of the Business
The nature of the business directly impacts the company’s culture as well as your employees’ behavior and how they feel about working for you. There are external forces such as demand and supply, market capitalization, operating profit, and so forth, that affect the stockbroking industries, financial management, and banking sectors. If the economy collapses, some industries have no other option but to fire employees which then can lead to a negative effect on the workplace community and the company’s culture.
Constant changes in the industry can lead to disruption, conflicts, and extreme demotivation in employees in which cases when no one can regulate the situation, the management feels powerless. Employees feel skeptical about their career chances and potential to advance in such companies.
Importance of Funds and Technology
Employees should be provided with the necessary materials in order to achieve success. If they are not met with the required resources the staff will become frustrated which can have a damaging effect on business culture and result in an unsatisfactory working climate.
Any organization that wants to promote cooperation and coordination must invest in technology. Technology is essential when it comes to company culture since it's a huge part of our everyday life. It has the ability to create an “always available” workplace that allows employees to settle problems outside of working hours.
Due to technology, there is software out there that helps you train your employees in a hassle-free manner without having to engage physically. Engage EHS has helped a lot of companies train their employees with the use of technology in the current difficult lockdown times where businesses are operating mostly online.
Management and Employees
Every individual comes from a different background, with different personality traits and experiences. In order to lead and manage the individuals, the organization creates a set of rules, procedures, and instructions to help direct its employees. Organizations develop a hiring process in order to hire the right candidates for the company as well as avoid hiring unqualified candidates that can lead to negatively impacting the company’s culture.
In some cases the management allows employees to make their own decisions and be included in strategy making. This results in employees wanting a long-term alliance with the organization and what they offer. Management respects the employees in order to create a relationship where the employee is motivated to work and avoid a situation where they are only working for the sole purpose of making money.
Company culture is not just a concept but rather something that must be enforced and managed. With it you can recruit and sustain top talent. This will have an effect on anyone considering investing in or working with you. Additionally, company culture influences all parts of an organization, including how rapidly it expands to how well-prepared workers are to achieve and surpass their objectives. Focusing on areas such as creativity or innovation, it is necessary to achieve the culture you want as well as develop a profitable company in the process.
About Author: This article is written by a marketing team member at HR Cloud. HR Cloud is a leading provider of proven HR solutions, including recruiting, onboarding, employee communications & engagement, and rewards & recognition. Our user-friendly software increases employee productivity, delivers time and cost savings, and minimizes compliance risk.