Company culture is the backbone of any successful organization. Every organization, from small businesses to large corporates, has a culture. Company culture includes values and behaviors that adds to the social and psychological environment of a business. A healthy company culture helps in boosting the performance of a business.
Let’s take a look at 5 reasons why company culture is important:
1. Identity of your company
To begin with, culture contributes to the identity of your company. For instance, if your company prioritizes achieving both organizational goals as well as individual goals, then workers will be more likely to join your company as they see growth both personally and professionally.
2. Absence of company culture creates chaos
If the company does not have a good work culture, it can be an unhealthy work environment.
If it does not make the employees happy, then their productivity level will come down. This will directly affect the growth of the individual and hence the growth of the company.
3. Retention of employees
A solid company culture attracts employees who are proficient and, more importantly, retains the existing employees. When people feel like they belong to a culture, they are more likely to make a long-term commitment with the company. This means fewer people to hire and better bonding among your employees.
4. Image of the company
Culture increases your brand image. If you have a high spirited and a cheerful atmosphere, your customers will see you as a gracious brand. Depending on your target customers, that could be a huge advantage for sales and company reputation.
5. Business growth and longevity
Good company culture positively impacts business growth and longevity.
Studies show that most of the profitable companies do not primarily focus only on profit making. They give equal importance to the company culture. They believe that a happy employee is a productive employee.
So, when there is a solid company culture, there is retention of employees, business longevity, leading to the growth of the business.
There is no single formula for a “perfect” company culture. It is different for every business. It is important to remember, “company culture is what motivates and retains talented employees”. And this is what will keep the business alive and competitive in the near future.