Company culture is the backbone of success. Leaders and employees recognize this. In Deloitte’s Chairman’s survey, 94% of executives and 88% of employees believe that a distinct workplace culture is important to business success.
Unfortunately, that same survey reported that only 19% of executives and 15% of employees believe strongly that their culture is widely upheld within their organizations.
While this can seem alarming, it does provide opportunity. Those leaders who want to create a dynamic, growth-oriented organization with engaged employees can excel by doing one thing: prioritizing company culture.
An investment in company culture changes everything
From the bottom line to brand perception, company culture has an impact on nearly every aspect of your company. A strong company culture can create positive impacts including:
- Improved employee satisfaction & engagement. A positive culture enhances job satisfaction, motivates employees, and promotes engagement, leading to higher productivity and better retention. A 2019 Glassdoor study places culture, values, and senior leadership as critical elements for employee satisfaction.
- Easier recruitment and retention. A strong, positive company culture attracts talent and plays a critical role in retaining top performers by fostering an environment where they feel valued and part of a community.
- Better brand reputation. Company culture affects how the organization is perceived externally. A good culture can enhance the company’s reputation, making it more appealing to customers, partners, and potential employees.
- Increased performance & productivity. A culture that encourages innovation, accountability, and teamwork can improve performance and productivity by enabling employees to work more effectively.
- Inspired innovation & creativity. A culture that supports risk-taking, learning from failures, and creativity encourages employees to innovate, which can lead to developing new products, services, and processes.
- Improved customer satisfaction. Satisfied and engaged employees are more likely to provide outstanding customer service, leading to higher customer satisfaction and loyalty.
- Better decision-making. Company culture influences decision-making, whether through a hierarchical approach or a more collaborative decision-making process.
- Heightened adaptability & resilience. A flexible culture that encourages adaptability can help an organization navigate changes and challenges more effectively, making it more resilient in the face of adversity.
- More diversity and inclusion. A culture that values diversity and inclusivity enhances your people’s psychological safety, which is tied to innovation and employee satisfaction. According to McKinsey, diversity is tied to improved profitability.
- Enhanced team cohesion & collaboration. A supportive culture fosters strong relationships among employees, enhancing teamwork and collaboration.
- Better profitability. A positive and strong company culture leads to better financial performance by impacting various factors such as employee productivity, customer satisfaction, and innovation. Companies with strong cultures have seen a 4x increase in revenue growth.
What is company culture?
Company culture is a shared set of workplace beliefs, values, attitudes, standards, purposes, and behaviors. It reflects both the written and unwritten rules that people in an organization follow.
Your organization’s culture is the sum of all you and your colleagues think, say, and do as you work together.
If that sounds important, it is. In the 2019 culture survey conducted by BambooHR, an overwhelming 94 percent of respondents agreed that culture is related to their organization’s success. Sixty-three percent said it’s very important or essential.
Tony Hsieh, the CEO of Zappos, agrees. He says, “Our belief is that if you get the culture right, most of the other stuff, like great customer service or building a great long-term brand, or empowering passionate employees and customers will happen on its own.”
And Sir Richard Branson stated, “Create the kind of workplace and company culture that will attract great talent. If you hire brilliant people, they will make work feel more like play.”
How to create extraordinary company culture
Creating company culture that attracts and retains talent, prioritizes customers, and improves profitability isn’t impossible. Doing so must start at the top.
When leadership prioritizes company culture with a long-term view of employee growth and success, company culture improves. Here are some steps toward improving company culture:
Communicate your organization’s purpose and vision. Your team wants to know that the work they do matters to the organization, to their team, and to the world. Clearly communicate purpose and vision. When your team knows where the organization is heading, intentional culture is supported.
Define core values. Clearly articulate your company’s core values. Integrity and ethics are a pivotal part of company culture. Your team wants to know that their personal values align with overall company values. Communicate those values clearly so everyone knows where the organization and leadership stand.
Promote inclusivity. Create an environment where everyone feels they belong. Encourage inclusivity in decision-making and team activities. Make sure everyone knows they have a seat at the table both through your words and actions. Encourage a culture where everyone knows they belong and are valued.
Foster transparency. Build trust through sharing challenges and obstacles, as well as optimistic attitudes towards overcoming difficulty. Transparency builds trust and makes employees feel valued and part of the bigger picture.
Encourage feedback. Demonstrate your willingness to receive both positive and negative feedback to avoid conflict, confusion, or rumors. When employees feel comfortable sharing their ideas and concerns, leadership has a better perspective on critical events, perceptions, and opportunities in the organization. Act on feedback to show that it’s valued. Doing so encourages psychological safety.
Resolve conflict quickly. Show your team that conflict isn’t something to avoid. Demonstrate that conflict is addressed quickly and that differing opinions and viewpoints are welcome. Use conflict to strengthen team bonds and exhibit transparency.
Flexible working hours. Offer flexible working arrangements, such as remote work options or flexible hours, to help employees manage their personal and professional lives more effectively.
Encourage time off. Promote a culture where taking time off for rest and rejuvenation is encouraged and respected. Your high performers know they need time to rejuvenate to perform at their best. Encourage everyone to take time for rest and recreation.
Provide growth opportunities. Offer training programs, workshops, and courses to help employees expand their skills and careers. Also, offer opportunities for self-discovery, like Motivation Code. When your people know more about what motivates them and fulfills them, they’re more likely to proactively seek expression of those traits.
Create career paths. Show employees a clear path for advancement within the company. If your people feel that they’ve done all that they can do in your organization, they’ll look for more interesting opportunities elsewhere.
Encourage Motivation Code assessments. Not only does Motivation Code help you understand the people you’re leading and help you design more effective teams, but it also helps your people learn more about what motivates them. Self-knowledge and personal development are critical factors in employee growth and development.
Acknowledge achievements. Regularly recognize and celebrate employee achievements, whether through formal awards, public acknowledgments, or simple thank-you notes. Tailor this to your team member’s Motivational Dimension, and acknowledge the achievements most in alignment with what makes them fulfilled.
For example, you might not want to thank a Visionary for “falling in line” with how things have always been done. Visionaries are interested in finding new and innovative ways to achieve. Recognize when activities that innovate lead to achievement and your Visionary employees will feel celebrated.
Celebrate your people. Tailor rewards and incentives to match what your employees value most, whether it’s career advancement opportunities, bonuses, or additional time off.
Knowing what motivates your team members can help. For example, if you know you have a Relator on your team, celebrate their achievements as they relate to their demonstrated care and genuine concern for employees and customers. In this way, you support a Relator in alignment with their values.
Promote mental and physical well-being. Physical activity often supports mental health the most. A mid-day walk can inspire creativity, and connecting to nature can help team members gain a greater perspective on challenges. You can’t outthink overthinking. And often, clarity comes when we take a break from problem-solving.
Company culture starts with people first
Knowing your people is a cornerstone of creating a culture that works. If you’re not sure what motivates your team, it’s difficult to create a culture that resonates with their values, vision, and motivations. Bringing Motivation Code into your organization can uncover key areas where your leadership can improve company culture.
Reach out to our team to discover how other organizations have improved their organizations by focusing on what motivates their people.
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