Having a good corporate culture is no longer an option, but instead a must. It affects almost every aspect of your business.
You’ve wondered, right—how company culture impacts the bottom line? What does company culture have to do with your company’s net income?
Read on to find the answers.
What Is Company Culture?
Company culture is the shared values or attitudes that characterize an organization. It’s reflected in the way people interact with each other and how they feel about the work they’re doing. It represents the spirit and the vision of your company.
The components of a corporate culture include 4 main parts: vision, mission, core values, and business philosophy.
Your company culture can be expressed visibly or invisibly:
- Visible: uniforms, slogans, rituals, regulations, internal journals, activities, etc.
- Invisible: attitudes, working styles, habits, ways of thinking, etc.
Company culture is decisive to the long-term success or failure of your business. That’s why you need to build and maintain it over time.
How Company Culture Influences Your Bottom Line
1. Betters Employees’ Satisfaction
Good company culture helps employees see clearly the goals, orientation, and nature of their work. It also creates good relationships between employees, building a healthy working environment.
You might’ve heard the term “brain drain” in business—meaning good employees leave a company for a better one. Salary and income are only part of the motivation to work. People are willing to trade a lower income level to work in a more comfortable, respectful environment.
Employers who invest in employee satisfaction receive dedication from their employees. And employees affect your company’s bottom line, for sure.
2. Minimizes Costly Turnover
For work that requires special skill sets and specific qualifications, employee turnover can get extremely expensive. Improving your company culture can be a solution to this problem.
Putting a smile on your employees’ face every day they go to work, simple as that, can make them stay, and invest more into your business in the long run.
3. Increases Employee Engagement and Productivity
Employee engagement improves as a result of open communication within and across teams. Engaged employees have a strong sense of worth and know exactly what they’re up to. This fuels their efforts and productivity.
Happy employees are also less likely to take sick days. The reduced employee absenteeism will benefit your company’s bottom line.
4. Reduces Conflicts
Company culture is the glue that holds members of your business together. It helps them work together efficiently and find mutual solutions to their work.
5. Reduces Management Required
Company culture isn’t just about celebrating employee birthdays. It’s also about instilling positive values in team members. Inspired, motivated, and self-sufficient employees need less management from you. You’ll have more time for other matters instead of micro-managing your staff.
6. Attracts Top Talents
A positive work environment attracts top talents. Applicants today find out about your company’s culture before they step through your doors for an interview. What people share on workplace review forums influences your candidates’ job decisions.
To attract the best people, you need a positive and flexible company culture. Having the best employees mean you can enhance your bottom line.
7. Improves Working Environment
Building an effective working environment is building a successful corporate culture. In today’s business world, besides finding ways to work more efficiently, the working environment is also important.
You can shape your company’s environment depending on the nature of your company, the industry you’re in, and the characteristics of your staff.
For example, Pixar expanded the workspace where company members can meet and interact with each other, unlike traditional companies. Or Mayor Michael Bloomberg lets his employees sit in an “open” environment, rather than in separate offices with cubicles.
8. Enhances Your Business Appearance
What your employees wear can reflect the uniqueness and the values of your business. Of course, this depends on your company’s style and the atmosphere you’re trying to establish.
Uniforms unify your employees and create a distinct image for your company. On the other hand, allowing employees to dress freely will give them a comfortable and dynamic working experience.
9. Improves Employees’ Health
Obviously, healthier workers are much happier, more active, and committed than unhealthy employees. Business owners are responsible for keeping their workers healthy, both physically and mentally.
Offer health insurance and paid leaves. Organize a running team on weekends. Provide counseling programs.
Employees are more concentrated and dedicated when they realize they have a safety net for their physical and emotional well-being.
Start Improving Your Company Culture Today
Company culture is an indispensable part and an intangible asset of any business.
So, you’ve read about how company culture impacts the bottom line of your business.
Focus on building and maintaining solid company culture, you’ll be surprised at how you can change your employees and your company’s bottom line.