5 Reasons Why Company Culture Matters
Company culture has always mattered, but in recent years it has been getting more of the attention it deserves.
It is understandable that, in the middle of the pandemic, people ended up questioning their priorities, and too many had the chance to see how little their employer really cared about their well-being. Much has changed since, but people haven’t forgotten the need to look after their well-being, both mentally and physically. The ways these can be taken into account are not always aligned with staff and management, and therefore the latter should keep some basics in mind:
We don’t need stats to tell us a switched-off person is less productive than someone who feels motivated and passionate about what they do. Paying someone to sit in front of their laptop drinking coffee and counting minutes is not money well spent.
A happy employee is 31% more productive, and happy salespeople are 37% more successful at selling than their unhappy colleagues. Happy doctors are 19% faster and more accurate.* Feeling of belonging is linked to an increase of job performance by 56%, loyalty to 50% of reduction in turnover risk and 75% fewer sick days.** All these are worth money, so should be taken into account seriously.
Looking for a replacement for someone takes away time and money from things that can be more beneficial for the company. Would you rather have your HR team dealing with complaints, disciplinary actions and grievances or writing birthday cards and planning seasonal gatherings? One builds culture; the other breaks it and will make more people leave, leaving HR to hunt for replacements, in addition to dealing with those complaints and grievances.
The cost for the company’s reputation can be very high if the employees are not treated well. This can, for example, lead to losing customers in the form of the employees, their friends and family. Negative press can cause long-term losses for the company, and bad online employee reviews can mean potential clients will go elsewhere because they don’t want to be associated with the company for either reputational interest or a clash of values. All of these can result in significant amounts and could easily be avoided.
It is easier to attract new staff and get better applicants with a good reputation. What kind of people do you want to find in the CV pile and what kind of values and motivations do you want them to have? If your values are not aligned, they are less likely to even consider applying, and you will be left with people who you might not want and who might not bring much to the company.
A culture will be built by the people in the company one way or another, whether you like it or not, so it is best to make sure it grows in the direction you want. It is also not enough to give it direction and expect it to go there by itself; it needs guidance to make sure it won’t get lost on the way. It only takes one person to destroy a good culture if no one has an eye on the ball.
A fun slogan or a poster on a wall is no use if people are doing the opposite. The main thing anyone needs to do when building a healthy company culture is to make sure people live by the values they are meant to live by whilst at work. Culture is built from collective and consistent behaviour, so nurturing that is the best thing anyone looking for a healthy company culture can do.
*TED talk by Shawn Achor
**2024 study featured in the Harvard Business Review
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