Why Is Company Culture So Important?

So, before we get into the nitty gritty of why a positive company culture is important, let’s look at what it actually is. It is not a tangible element or fixed asset; a company’s culture is the atmosphere; environment; values; expectations; missions; goals and attitudes of employees. Think of it as the business’ personality – the life and soul of the office!

In Peter Ashworth’s Pulse about ‘Why Company Culture is so Import to Business Success’ he suggests that typically, companies who operate with a strong culture tend to be higher performers. So what are the known benefits of a strong and positive company culture?

• Employee Retention and Productivity – If a company values its employees, allowing them to work in an environment that they feel comfortable in, motivated and considered as an individual, it will boost employee morale, which in turn, will increase employee retention as well as increased productivity for the company.
• Improved Communication and Teamwork – A strong company culture, where employees strive towards common goals suggests an open atmosphere in which employees can communicate freely towards each other and thrive in team work activities.
• Reputation and Brand Image – Companies with a healthy culture is definitely something to be showcased. A positive reputation and brand image can be a catalyst in attracting new talent into your organisation and differentiating yourself from the competition. A solid reputation and brand image can also allow companies to add value to their products and services as they become known as a reputable organisation.

The above are aspiring benefits, to say the least, not to mention the financial value a strong business culture can provide; low staff turnover, less internal politics, and increased employee efficiency. This means key decision makers have more time to invest in other elements of the company, such as strategical planning and growing the business.

According to Sujan Patel’s  article from Entrepreneur.com; Zappos, Warby Parker, South West Airlines, Twitter, Chevron, SquareSpace, Google, REI, Facebook and Adobe are all viable candidates for companies that have a great culture, concluding that treating employees with trust and ownership is a key part of their company culture.

Company culture is something that takes time to build, it is not an over night success, but with 78 percent of a survey’s respondents suggesting that ‘culture is among the top 5 things that make their company valuable’, it is certainly an element of a business strategy that should not be forgotten.

A lack of time to relax both at home and in work, limited humour in the office, slow and restricted internet connectivity, unstimulating surroundings and inadequate trust in employees, are five slip ups that can have a negative impact on a company’s culture.

Here at Foundation Recruitment, our culture is by far one of our most important assets. Joining the business at the start of the year, I was enticed strongly by the culture – it was one of the roles main USPs. In one of our recent employee engagement surveys, our company culture was voted one of the top reasons for why people joined the company.

We fully understand the importance company culture can play in an organisation’s success which is why we interview everyone based on culture fit first, and competencies later on.