Company Culture: The Important Role That It Plays in Employee Satisfaction

Company culture is defined as the interaction between the people within an organization and how well they gel with each other. Like a microcosm of the society at large, company culture is an expression of the people’s values, behaviors, attitudes and work that they perform for the organization. Elaborating on the concept, Lancaster University Professor of Strategic Management Gerry Johnson explains company culture as comprising of seven different tenets:

  • Company values, mission and goals
  • Systems that regulate and monitor what goes on inside and outside the organization
  • Power infrastructure
  • Leadership
  • Symbolism or corporate branding
  • Routines and rituals unique to the organization
  • Company mythos or story

If a company manages to build positive workplace culture, it can become a driving force for attracting talent, productivity, and job satisfaction, among many other aspects of work. On the other hand, negative company culture may not only affect work—its ill effects can creep into one’s personal life as well. Toxicity in the workplace can harm you mentally, emotionally, and even physically.

Key statistics about company culture from Resumeble

When company culture isn’t valued across the organization, it reflects in the dismal numbers relating to employee retention, performance and productivity. Below are statistics that prove why company culture should be treated as a priority.

  • 81% of employees are willing to work more if they felt their employer was empathetic.
  • Approximately 33.3% of American workers say they are regularly recognized for their excellent work. Employees who don’t feel recognized say that they are twice as likely to quit their job within a few months.
  • 86% of job applicants will not apply for a company that is known to mistreat employees. Read more about how to build a career without a degree.
  • 65% said they would quit their job if they felt the company is starting to be perceived negatively by the public.
  • 58% have left their jobs or are considering leaving because of negative office politics.
  • Positive company culture can yield up to a 33% increase in profits, while a good manager can result in a 27% higher revenue per employee.
  • Engaged employees result in 17% boost in productivity while lowering absenteeism by 41% and turnover by 24%.

We, at professional cv and cover letter writing service Resumeble, know that a business has a more likely chance of doing well when it focuses on establishing a positive company culture. If you think your company, department, or team is failing, it’s time to look at how you can improve the existing culture in your workplace. Of course, there’s no one-size-fits-all solution to make each employee as happy and productive as they can be but focusing on realistic goals can pay off handsomely for you, your colleagues, and ultimately, the company itself.

The reasons why company culture is important

Suffice to say, company culture is especially relevant to the success and overall health of the company. That’s why understanding it of critical importance, and here are six reasons why.

1. It upholds the company’s core values

Culture is a way of realizing what the company believes in as a whole. It shows in the way the organization conducts its business, the interactions between teams and individuals, and how it treats its customers. If culture within the workplace is healthy, then the core values will reflect in the organization’s business structure and all aspects of its daily operations.

2. It turns employees into brand ambassadors

People want to feel that what they do matters. A company that makes employees feel this way are effectively turning them into advocates. Not only do advocates internalize the workplace culture, but they also promote and uplift the company in the eyes of others—co-workers, new applicants, customers and beyond—often unintentionally.

3. It helps retain talented employees

Employees who feel a sense of belongingness and believe that they are contributing to something good—something bigger than themselves—are more likely to stay with their company. In fact, according to Monster.com, more than a job, applicants are also looking to work for a company where they can fit in naturally with the existing culture. As such, one of the techniques employed by many of today’s corporations is to hire for cultural fit.

4. It transforms individuals into productive team members

A positive work environment brings employees together and keeps them on the same page. And when people are aligned, their work starts to have a purpose, and they are more willing to get behind the company. The culture defines how people interact and collaborate, and in turn, dictates how well they function as a team.

5. It boosts employee morale and wellbeing

There’s no denying that the workplace environment plays a direct role in a worker’s self-esteem and wellbeing. A healthy culture tackles both of these personal aspects by giving employees a voice and finding the right balance between work and relationships, allowing those from the top down a stake in shaping the work environment.

6. It impacts performance and productivity

Productivity occurs because people are motivated, and motivation thrives in a positive environment. Research shows that company culture is directly linked to productivity, and this can be attributed in large part to the way it affects a person’s mindset to become more engaged at work.

Improving company culture

The way to a better company culture is to keep in mind three things:

  • Culture starts from the top, and it is the job of management to recruit, train, and coach managers while also holding them accountable for becoming ideal role models for the employees.
  • Managers at every level must see the uniqueness in every employee, as well as their strengths and weaknesses.
  • In creating a positive workplace ideal company culture, human nature must be taken into consideration. Guidance should be readily available to those who need it, and work should have a deeper meaning for the employees, all the while giving them the space, they need to feel independent.
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