Why organizational culture matters?

5 reasons why a well-formed culture in a company is important and how it is expressed

At first, it may seem self-evident. It seems that organizational culture can be freely formed in the company, but it is important that you actually create it and that it forms over time.

   1. Employees are more motivated and satisfied if their needs match the needs and values of the organization.

Set core values in the company and follow them every day. A successful example of a company that places great emphasis on core values and views them as a way of life is Zappos. Known for its strong organizational culture, it has been ranked on the Fortune Top Employers list for seven years. In the workplace, they advocate for the well-being of employees and a fun work environment. They defined 10 values, whose emphasis is on building a positive team and family spirit, creating fun, creativity, pursuing growth and learning.

Tip : Talk to the employees about the values, write them down and formulate some fundamental ones that you consistently follow and work on every day.

   2. Company culture can be the reason why employees like or are reluctant to come to work.

Create such a culture that employees will be happy to come to work. Both Zappos and Google offer employees the feeling of a small business with connecting, equal and friendly relationships. An informal work culture prevails in both companies. Work presents a challenge that they associate with entertainment. This has an impact on the well-being of employees, greater motivation, along with better work results. Therefore, employees feel less stress and are more happy to come to work.

Tip : Do not be afraid that some fun in the workplace will ruin employee productivity. Encourage a certain amount of fun. In case you have some extra space in the office, you can think of table tennis or football.

   3. The company culture influences employee engagement.

With more formality and hierarchy, you might want to show seriousness and commitment at work. However, this can also communicate to employees that they should not participate in the exchange of ideas and opinions with the company’s management. Therefore, they feel a lower sense of belonging to the company. Consequently, employees do not share their ideas, thoughts and opinions with the management, which could otherwise have an impact on better company growth and higher motivation.

In case you want higher employee engagement, create a relaxed and stimulating environment. This will encourage employees to express their ideas, thoughts and opinions without much hesitation. Open, informal and honest communication is also a fundamental feature of Google’s culture. They allow employees to interact directly with management on a daily basis to encourage the exchange and implementation of new ideas and proposals. They are also aware of the importance of the individual’s opinion, role and contribution to the overall development and success of the company. Therefore, they offer each of the employees one day a week to develop their ideas and projects.

Tip: Establish relaxed relationships in the company and communicate to employees that their ideas and suggestions are definitely welcome. This will increase employee engagement and create a greater sense of belonging to the company among them.

   4. Company culture influences increased productivity.

Companies with a strong culture praise employees and invest in their knowledge. Praise encourages employees to repeat successful actions in the future. In addition to providing training and mentoring, this also leads to higher productivity.

Tip : Celebrate employee achievements and praise them in front of others. Moreover, provide them with education and mentoring. This way, you will retain your employees and increase their productivity.

   5. A strong culture is an advantage that attracts and retains talent.

A survey by Glassdoor has found out that 77 % of people consider a company culture before applying for a job. In addition, almost half of the employees would leave their current job for a lower paid opportunity in an organization with a better culture. The culture of the organization has also proven to be one of the main indicators of satisfaction and one of the main reasons why almost two-thirds (65 %) of employees remain in their current company.

Tip: Try to follow all the above tips and design your organizational culture. Now you know why it matters.

Mission and Culture Survey 2019 (2019). Glassdoor. Retrieved from https://www.glassdoor.com/about-us/app/uploads/sites/2/2019/07/Mission-Culture-Survey-Supplement.pdf