We often hear the term ‘corporate culture’ in our office or corporate life. Companies around the globe, especially in South East Asia are focusing on building strong workplace and corporate culture. 88% of employees believe organizational culture is an important aspect of their work life. Gone are the days when the conventional workplace ethics and consulting methods work. Now is the time to adopt a more dynamic workplace culture.
For instance, traditional hierarchical company policies are now being replaced by a more open practices, defined by equality and communication. But what does the term mean and why is it important? Let us take a look.
What is Corporate Culture?
Corporate culture is a very generic term. Yet it is rather specific to each organization and is what defines a company. It consists of a set of rules, ethics and beliefs that moulds their behaviour.
Most organisational culture policies revolve around providing equal opportunities to all in order to lead to a more progressive business.
People pay attention to corporate culture. In fact, 48.4% of employees tend to look out for other opportunities outside the company if workplace culture is not up to the mark.
If you give your organization a mission by means of a strong workplace culture, the company is expected to have a 30% higher innovation level.
Importance of Organisational Culture
So, we understand that organizational culture can help develop a strong foundation for the company. But how does it directly impact the business? And why do we assign so much importance to this? Let us take a look.
Good workplace culture invites the best talent in the industry and increases retention rate
One of the most important aspects of a company is to keep the employees happy and motivated. When the organization is backed by a strong workplace culture, the employees are encouraged to give their best.
In fact, positivity in the workers increases the retention rate of the company. Since it takes about 30-150% of the current employee’s salary to get a suitable replacement, a high retention rate is a big advantage for the company. Besides, owing to the positive reputation, other suitable talents tend to join your company.
Organisational culture develops the company’s reputation
In today’s world, there is a lot of competition in the market. For each industry sector, one would find a list of companies doing well. In order to stand out in the crowd, it is important to have a positive reputation for the organization. And employees are most effective in building a company’s brand image.
Most organizations bank on their workplace culture to promote their brand. This also forms a good image with the customers.
Corporate culture impacts business productivity
Employees who stay motivated at work tend to be more productive. In addition, they bring new ideas to the company and help it grow in the corporate world. A workplace environment where the workers learn and grow will lead to a more productive business.
Elements of a Brilliant Corporate Culture
Here is a list of six important elements of a good workplace culture.
- Vision: The vision dictates the values possessed by the organization
- Values: The set of rules forms the basic backbone of the company’s culture
- Practices: Values are rendered useless unless they are practiced in every sphere of the business
- People: A successful company needs to have a set of employees who share the same values and ethics as the organization
- Narrative: The power of narrative can be used by the company to celebrate its heritage or share success stories across its offices
- Place: The seating arrangement in an office or how people interact with each other in the same place goes a long way in determining what the corporate culture looks like
How to Build a Strong Corporate Culture?
Building and maintaining a strong corporate culture is not an easy task. There are various dimensions to organisational culture to follow. Here are some steps you could take up to achieve this feat.
- Purpose: Starting with a purpose is the foundation for having a strong workplace culture. While it is easy to maintain this when the company is small, it becomes difficult when the company grows.
- Values and standards: In order to have a successful business, it is essential to get employees united by a common framework of values and standards. These principles characterize the organization.
- Lead by example: Performance heavily depends on how leaders act. If leaders can represent the values of the company and lead by example, your employees will follow suit.
- Identify representatives: Every company has outliers. True examples of the values and ethics of the organization. It is important to appreciate them.
- Communicate: Communication is the key to a successful businesses. More companies are now moving to a more open and interactive business platform to keep all the employees engaged.
This pretty much sums up how having the right corporate culture is important. It invites the best talent and boosts your reputation.
How do you take care of the culture in your organization? Do let us know in the comments below!