THE WORLD’S #1 EXECUTIVE COACHING AND BUSINESS COACHING BLOG SINCE 2017.
Why Corporate Culture Is Becoming More Important
It is important to understand corporate culture and its role in business, but it has only recently become a popular topic for discussion.
Some find that it has lost some meaning due to an overabundance of content and discussions around it.
Corporate culture, however, has never been overblown and is actually becoming more and more important as modern workplaces evolve.
The Advantages of a Strong Culture in the Workplace
Unified company culture is the key to the success of your business.
Character, Identity, & Values
Firstly, culture plays a significant role in developing your company’s character, identity, and values. A company culture fosters personal and professional success will encourage your employees to set their own goals and achieve them. By setting and maintaining company values, and keeping them coherent among employees, it is easier to keep your company moving in the right direction.
Employee Retention & Satisfaction
It is important to have a strong company culture to attract and keep qualified employees. The chances of people sticking around for a long time increase when they feel like they belong to an organization. Thus, you’ll have fewer turnovers, less new hires to manage, and better teamwork.
Brand identity is also influenced by corporate culture. Treat your employees well and create a fun, generous company atmosphere, and your customers will see you as a fun, generous company. That could increase sales and customer loyalty depending on your target demographics.
Brand culture is likely something you’re already familiar with. Culture as a whole will become increasingly important, which means these dimensions will rise in tandem with that expansion.
But, why is that importance beginning to rise?
New Industry Trends and Increased Competition
There is a growing interest and focus on corporate culture as a development factor. Increasingly, companies are focusing on creating detailed brand cultures, preserving them, and developing them.
Why is this the case?
Part of the reason is that culture gets discussed more often now. Many believe that companies without a culture or one that is weak experience increased turnover, and in conversation between entrepreneurs, culture arises more frequently.
Expectations Among Millennials
In the near future, millennials will drive workplace changes whether we like it or not. Without millennial talent, you could experience stagnation in your growth, leading to a talent shortage.
Accordingly, millennials are more likely to be attracted to companies with a strong culture (in some aspect or another). Your company’s culture will make or break your ability to recruit, and it will happen very quickly.
The Economy of Startups
Moreover, it is worth mentioning that the startup economy has added some novel variables to the entrepreneurial ecosystem. The digital age provides entrepreneurs with virtually unlimited means to build companies – and those companies (particularly in the tech sector) can either take off or fail relatively rapidly.
Therefore, entrepreneurs have to find a way to differentiate themselves in the market, especially for industries where productivity is low, and to find a way to keep employees who would otherwise bounce after short-term assignments.
Should You Invest Time in a Culture Audit Now?
You may want to consider performing a “culture audit” after you realize that company culture is truly vital to your business’s success (and is about to become even more vital).
This approach evaluates the state of your culture, determines what (if anything) needs to be changed, and establishes strategies to make those changes.
Look at aspects such as:
Is your company culture well defined? Where can it be found? Do all new hires have access to these plans, and how specifically are they defined?
What is the current understanding of your company culture among your employees? Conduct a survey. Are they familiar with the brand values that you promote?
Although your workers may be familiar with your culture, they may not live, breathe, and enforce it consistently. Do you ever find your team leaders failing to adhere to the culture you desire? Are your employees doing the same?
Each business has its own culture – there is no one way to create a “correct” company culture — however, if you want to remain competitive in the future, you will need a stable and consistent set of values. From here on, it will only become more important.