Why is Company Culture so important?

There has been a lot of talk about company culture recently, this has especially been brought to the forefront due to the pandemic. We see it on company websites, in job advertisements and in LinkedIn posts. But what exactly is company culture, and why is it so important for the success of a business?‍

What is company culture?‍

The culture that sits within your company comprises of your core values, beliefs, ideas and systems. These are the cumulative attitudes and goals that make up your organisation. 

It isn’t a one size fits all approach but instead takes a lot of inward thinking and hard work to create a culture that works well within your organisation. While there may potentially be some overlap, no two company cultures will be the same because every organisation has its own unique workforce and goal. ‍

So why is company culture so important? ‍

While it may have become a sort of buzzword in the past few months, the kind of organisational culture you have can greatly impact (positively or negatively) the success of your business. Here are just some of the main reasons why you should spend time focussing on building a culture within your organisation: 

1. Defines your company’s identity
   

A distinct culture that’s unique to your company is what will set you apart from the rest and benefit your organisation greatly. By defining your company’s identity, you are able to showcase your organisation in a positive light and help strengthen its identity.

2. High retention rates in staff 

It's no surprise that a good company culture that values the team results in high retention rates amongst staff. 

3. Higher productivity levels 

As mentioned above, a higher level of employee happiness and satisfaction has a domino effect on higher productivity levels within the workforce, which can only be a good thing for organisations!

4. Higher employee engagement
   

Good employee engagement levels come from having a well thought out company culture. High engagement levels are a direct indicator of higher employee satisfaction, which in turn leads to improved performance and better economic health. 

5. Attracts top talent 

Job seekers are increasingly paying closer attention to the additional details a company can offer - their work schedules, core values and, yes, company culture.

There are some great benefits to building a strong company culture in your organisation. Successful company culture will strengthen relationships, transforming a company into a team. It enhances employee wellbeing and positively impacts performance and economic growth. Looking ahead, as millennials and Gen Z form the crux of the workforce, company culture is increasingly becoming the primary reason for job seekers to join a company. So, if you’re looking to create an organisation that people love to work in, creating a culture that allows them to thrive is the way forward.