What is a company’s culture and why is it important?

What is a company’s culture and why is it important?

Navigating the modern business world involves more than just your products, services, and profits. It’s about the people within the company and its overall culture. Culture is the invisible thread weaving through every interaction and decision your team makes, considerably impacting long-term results. 

Your organizational culture is within your control, allowing room for changes and improvements that can benefit your employees, guests, and bottom line. Read on to learn more. 

Company culture: what is it?

Culture creates the experience your business offers its employees and should align with your external messaging. 

According to the work of business professors Robert E. Quinn and Kim Cameron, company culture can be categorized into four main types:

  1. Clan culture: With an emphasis on teamwork and collaboration, this culture promotes a friendly, collaborative environment where each employee is a valued member of the workforce.
  2. Hierarchy culture: Placing a strong value on order and rules, hierarchy culture establishes well-defined roles and processes to create a more structured and well-oiled workplace. 
  3. Adhocracy culture: Often called the “create culture,” adhocracy workplaces prioritize results, encouraging employees to be flexible and resourceful in the face of change and finding the most effective solutions to problems as they arise. 
  4. Market culture: In this highly competitive dynamic, teams are driven by individual performance, ambitious goals, and measurable results, embracing high-pressure situations. 

Key factors contributing to corporate culture

There are a few main aspects that make up a company’s culture, including how:

  • Employees interact and communicate with one another.
  • Organizational decisions are reached.
  • Talent is managed (how and why individuals are hired, promoted, or let go).
  • Staff members are recognized by team leaders and peers.
  • Workforces celebrate their accomplishments and their colleagues. 

The value of an effective organizational culture

Company culture is critical because it shapes how employees collaborate, innovate, and engage with their work, directly influencing an organization’s overall productivity and creativity. Not to mention, it impacts how the business is perceived externally: affecting recruitment, retention, and the ability to adapt in ever-evolving landscapes. 

Here’s a closer look at the true value of an effective workplace environment:

Boost employee retention and engagement

A positive company culture ensures that employees feel valued and connected, driving long-term engagement levels. Quantum Workplace reports that a staggering 87% of engaged employees say their culture is strong, versus only 39% of disengaged employees. This not only minimizes turnover rates but also fosters commitment, loyalty, and a sense of belonging. 

Drive performance and productivity

A thriving culture encourages collaboration, open communication, and better business results in the long run. Team members who are aligned with the company’s values and goals are more likely to channel their efforts toward organizational success. Shared drive and common goals are key to accelerating productivity and enhancing workforce performance. 

Increase financial returns

It’s important to recognize that organizational culture isn’t just a soft concept; it has a tangible impact on your bottom line. By fostering a positive environment that promotes innovation and creativity, businesses attract top talent, reduce turnover costs, and improve workforce efficiency. Research from TeamStage reveals that a corporate culture that attracts high-caliber employees leads to a 33% revenue increase

Promote employee and customer satisfaction

A workplace that emphasizes employee well-being often extends to customer interactions. Happy and productive employees are better equipped to provide exceptional customer service, driving satisfaction and loyalty. 

Foster a strong company culture with these 4 strategies 

While corporate culture has always been a defining aspect of any organization, it’s changing. According to a Quantum Workplace 2022 Organizational Culture Research Report, 35% of employees state that their company’s environment has shifted dramatically in the past two years, and 23% say it’s changed for the worse.

Despite efforts to transform cultures, research shows some companies haven’t managed to do so effectively — and employees can feel the difference. 

Consider the following strategies to improve your company culture in 2023 and beyond:

  • Prioritize clear communication: Establish transparent communication channels to ensure information flows seamlessly across the corporate ladder. By implementing open-door policies, utilizing collaborative online platforms, or conducting anonymous feedback surveys, organizations foster an open dialogue and empower employees to voice their opinions. 
  • Promote flexibility and a work-life balance: Flexible work arrangements are here to stay, and workers are pursuing these opportunities more often. Offering such arrangements and encouraging a healthy work-life balance helps employees feel supported in managing their responsibilities at work and home — promoting greater job satisfaction. 
  • Recognize and reward achievements: Explore ways to regularly acknowledge and celebrate employee achievements, such as team-wide shout-outs, performance-based bonuses, or employee of the month awards. Making an effort to highlight employee appreciation improves morale and enhances positivity.
  • Boost your workforce management: Take your workforce management approach to the next level with cutting-edge solutions and trusted staffing partners, like Employbridge. With streamlined processes and tools, teams can focus on training, development, and performance to build a motivated and skilled team. 
 

Evaluate and enhance your organizational culture

Organizational culture plays a vital role in the success of your company. A strong culture and positive working environment can go a long way toward promoting employee engagement, retention, productivity, and overall performance. 

As your team builds a robust culture that supports both employees and your business results, Employbridge offers dependable workforce solutions for support. Armed with 30 years of industry knowledge and an advanced workforce-as-a-service platform powered by Bluecrew, Employbridge provides the perfect blend of experience and adaptability to meet your evolving workforce requirements. 

By partnering with Employbridge, your organization can secure top talent in a fraction of the time and gain valuable insights to maintain performance and productivity — regardless of the state of your industry or market. Elevating your workforce management strategy is key to building a thriving company culture in the modern business world. 

Contact us to learn more about how services and solutions from Employbridge can support your pursuit of an improved company culture.