The idea of corporate culture was first raised in the 1950s, by Dr. Elliot Jacques in his book The Changing Culture of a Factory. It was in 2001 that the term really gained popularity, now many experts consider corporate culture to be an important part of success.
Why is company culture important? What steps can you take to define and encourage a healthy culture in your organization?
5 Ways Corporate Culture Helps Your Business
The importance of company culture is being talked about by leadership and management consultants around the world. Here’s why:
By next year, almost half the working population will be made up of Millenials. While it’s a generalization, of course, most millennials are looking to work for companies that reflect, or at least don’t contradict their own belief systems.
The average millennial is willing to sacrifice a higher salary to work for a company that has the right cultural fit. This includes diversity, work/life balance, environmental issues, and Corporate Social Responsibility.
It costs around $4000 on average to hire a new employee. It makes good business sense to try and hold on to the good people you have, rather than try to replace them.
Part of the importance of culture in business is that it increases employee buy-in. With a staff who feel more loyal, you are less likely to see them moving on for other opportunities.
The need to belong is one of the most basic human needs. Once air, food, water, and safe shelter are taken care of, people want to find their family or tribe. The importance of organizational culture is that it gives your team an identity to belong to.
Discovering Your Culture
If you’ve never given corporate culture much thought before, it may feel like a lot of work to create a culture. But most organizations have one, even if they haven’t really thought about or defined it.
Management Consultants can help you to find the core beliefs and behaviors that make your culture unique. Google Local will help you find consultants nearby. Try searching for, ‘management consultants near me’.
Organizations with a defined corporate culture are more profitable than those who don’t. According to a Gallup poll, companies with higher levels of employee engagement are 22% more profitable than those who don’t.
While it might seem that focusing on company culture will cost money and take energy away from the things you do to earn money, the opposite is true. Investing in your culture, and your people has definite financial benefits.
Knowing Yourself Has Many Benefits
Understanding and defining your Corporate Culture has numerous benefits for your business. It makes hiring easier, you’ll hold onto your staff for longer and their increased commitment will be reflected in your bottom line.
If you’d like our help to define your corporate culture, develop your leadership skills or train your sales staff then please get in touch today. We don’t just know the theory of corporate culture, we live it and we’d love to help you do the same.