Company Culture: Importance of Organizational Culture to Your Business

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Importance of Organizational Culture

Studies have indicated that in this day and age, upwards of a whopping 70% of employees are unfulfilled at work and hate their jobs. 

While this statistic might ring some alarm bells, it’s really not all that surprising when you sit and think about it. For many people, work is just that–work. 

People go off to college with dreams and aspirations then are hit with the rude reality that many companies are simply trying to make a buck, do the work and improve on last quarter’s performance. While the bottom line is crucial, we can never forget about the things that make work worth going to in the first place. 

As the leader of your company, you need to instill the importance of organizational culture. 

By building a solid team, your employees will be inspired and the rest of the work will take care of itself. To get started on this track, follow these strategies. 

What Exactly Is Company Culture?

Company culture is the philosophy, goal and emotional fabric that permeates your business. 

The problem is that most companies have objectives, but don’t have a culture. When you set up a company culture, everyone is working for something bigger than themselves and the work is more gratifying.

The Importance of Company Culture

To truly get a glimpse at how impactful establishing a company culture can be, consider the following:

1. A First Impression Is Everything

People are more drawn to your business when they know who you are and what you stand for. The reality is that this comes across loud and clear by your actions, and not just a catchy slogan or motto.

With a strong culture, your customers should get a sense for what your business believes in and stands for from the first interaction. 

Since your first impression is everything, you need to create a culture that leaves people not only wanting to do business with you again but also tell a friend about you. 

We also live in a time in which attention spans are shorter and people have more options about who they want to do business with. This makes first impressions all the more important. Create the right one by instilling a strong culture on the front end. 

2. Quality Company Culture Creates Quality Employees

Employees are more likely to rise to the occasion when they feel like they are apart of something. 

By establishing company principles, employees will clearly know what is acceptable and what is expected. From here, they will act accordingly every day and will be better able to exhibit their best qualities as they represent you. 

Since you are only as strong as your weakest employee, you can expect these benefits to ripple throughout your entire business. 

3. You Reduce Turnover

Whether you have a small team of employees or a large corporation, retaining employees is in your best interest. 

People that have bought into a strong company culture are less likely to leave. The reason for this is that the job becomes about more than the salary, and they can count on being fulfilled and stimulated every day.

Remember those statistics about the majority of people hating their jobs?

Employees know and appreciate how rare and it is to love where you work. When you build a company that they can fall in love with, they won’t take that for granted and will be more loyal as a result. 

4. It Improves Productivity

When you’re building a company, you need to make sure you’re always improving organization and productivity. 

People who come to work inspired will also be more productive. This helps you get more out of them and allows them to work better in teams. 

Since productivity gets your company more ROI as a whole, you can expect revenue increases. 

5. The Workplace Becomes Lighter and More Fulfilling

Productivity and efficiency aside, a company with a strong organizational culture is also a place where work is pleasurable. 

People will feel accountable for their work, without also feeling like just a cog in the wheel. This way, you’re encouraging them to want to do their best, as opposed to micromanaging and threatening to get the best from them. 

When people are fulfilled, the energy of the workplace is lighter and less stressful, which is good for everyone involved. 

6. Your Company Will Remain Competitive

Fixing your issues within makes it easier to compete with the outside world. 

These effects carry over into the marketplace. Customers will feel more drawn to your brand, and the results you get will make you a threat to competitors. 

Being better able to compete gives your company longevity and allows you to leave a lasting legacy. 

7. You Will Attract the Best and the Brightest

Your company’s hiring process is everything, and you can expect to bring in nothing but the best and brightest when you have a strong company culture.

Top employees are attracted to companies that have the best organizational culture around. Motivated professionals, more than anyone else, appreciate and understand the importance of organizational culture. 

What’s more, by providing them a great place to learn and grow, you’ll also get the best from them. 

8. The Workplace Will Become More Consistent 

Consistency is king when it comes to your business. 

When you have principles in place, you can expect your business to only become more consistent. This is good for your customers because they’ll know exactly who they are spending money with. 

It’s also great for your employees since they’ll feel comfortable knowing what to expect from you, and they won’t always feel as though their jobs are in jeopardy. 

Being transparent in this regard can help your company across the board. 

How Can I Improve My Company Culture?

Since you now know the importance of organizational culture, it’s time to take the steps to receive it. 

With some clear strategies and a little bit of help, you can truly transform your company. Start with these tips:

1. Get to Know Each and Every Employee

You can’t improve your organizational culture without knowing the people that make up the organization itself. 

Rather than just being the boss, set up one-on-one time with each employee as often as possible. When your employees feel like they can confide in you, it builds trust that is essential. 

They’ll do more for you and your company than you ever could imagine if they feel like you have their best interests in mind. 

What’s more, you can put your employees in positions to succeed when you have a better handle on their strengths, weaknesses, and motivations. This can help you put together teams that are productive. 

Something as simple as a few ice breaker activities can help build bonds of camaraderie in your workplace. When your company camaraderie is strong, everyone wins. 

2. Have a Mission and North Star Principle

Having a company mission is everything when it comes to getting the most out of your workplace. 

Knowing your “why” is a very popular concept today, because it helps to guide your steps. Understanding why you’re going to work every day informs the way that you work and the decisions that you make. 

Though you have your own motivations as the owner, your employees also have individual motivations. By having a company mission and north star principle, individuals can achieve their goals, while helping their fellow employees achieve theirs, all under the banner of the company’s goals. 

This is a winning combination that leads to inspiration that can be infectious.  

3. Keep Your Workplace Healthy

Make sure that your employees’ overall health is a central focus of your company culture. 

If your employees aren’t well, your company won’t be well. You need to keep your employees safe by offering worthwhile healthcare plans, promoting physical health, and looking after their mental state. 

Keep healthy snacks in the office and avoid activities that take away from physical or mental health. You can also hold wellness seminars and encourage employees to take time off for themselves. 

When you run people into the ground, they’ll not only be unproductive, they’ll also be resentful. It also increases the likelihood of accidents at work, which hurts the work environment and increases liabilities. 

The more you promote health and wellness as part of the company culture, the better off your organization will be. 

4. Make Learning and Development Foundational

Employees are more engaged when your company is all about growth.

To promote growth, people need to feel like they are learning and developing. Train your employees to better serve the company, but to also build individual skills that will help in their careers. 

Offering continuing education will not only incentivize employees, but it will also increase their likelihood of staying. Take the time to feed them information and send them to seminars, and your company will be better for it. 

5. Encourage Healthy Competition

Competition is the basis of any business–period. 

However, it is important to properly frame the way that your organization competes internally. You need to encourage your employees to push each other and continuously raise the bar. This is different than competitiveness that consists of cliques, backstabbing, and dishonesty. 

By instead encouraging your employees to become their best versions, competition will be a natural byproduct. 

Above all, make sure that competition and achievement are rewarded. Incentivize your employees to do their best work and consistently make it worth their while, and you will see lots of positive changes. 

6. Enforce Rules and Standards

An organization doesn’t have true standards if they aren’t enforced. 

To make sure that the basis of your company’s culture is sticking, you need to have some rules that go along with it. Don’t be afraid to enforce these rules, because the culture of the company will very much depend on it. 

Let your employees know that no one is above the company philosophy, and stick to those principles. 

7. Look at the Big Picture

Though your company is your baby, keep in mind that above all, it provides a reason and vehicle for people to come together and all win big. 

When this is the big picture, everyone will feel like they belong. Don’t get too caught up in the day to day minutia to not appreciate this fact. 

By always pushing forward with the big picture in mind, your organization’s culture will speak volumes. 

8. Give People an Opportunity to Grow and Advance

Finally, the last thing you ever want in your organization is for people to feel stagnant. 

While company culture improves retention, people will always leave if they feel like they aren’t being challenged. Because of this, you need to reward employees not just with more salary, but more responsibility and bigger challenges. 

This keeps the job fresh and allows people to truly achieve. 

Get creative by staying fluid with job titles and responsibilities. This way, you are able to make everyone feel engaged and part of the team. 

Understanding the Importance of Organizational Culture

Knowing the importance of organizational culture is the first step in building a successful business. This is a multifaceted concept that is learned through action over the years. 

When you are putting your company culture into motion, you will also need organizational tools to get the job done. Our professional training is some of the best that you will find anywhere, and will be foundational to building your company’s culture. 

We have some of the best products available and would be happy to help your organization. 

Get in touch to book a demo or ask questions. 

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