Company culture: Why it’s important and how to shape it

By: Tim Schieffer

What you need to know

  • Strong company culture increases employee satisfaction, supports employee well-being and ties back to core values.
  • Work culture boosts business performance, increasing productivity and customer engagement.
  • Managers strengthen company culture by empowering their teams and gathering employee feedback.

 

happy employee satisfied with company culture

Modern workplaces know that company culture is the pulse behind their success. Positive employee engagement increases retention and employee satisfaction. Engaged employees are motivated employees, leading to a more positive client or customer experience.

A Gallup study of the connection between work culture and business success found that engaged teams had increased productivity, quality and profitability.

While company culture supports individuals and their needs, it’s also part of a business's strategy for growth and success. Read on to see how to nurture company culture with your team.

What are the benefits of a strong company culture?

Strong company culture supports employee well-being through leadership development and updated earning programs. It also shows gratitude through incentive trips and employee recognition.

Related: Are your learning and development programs connected to your culture?

How does company culture support employees?

When workers feel supported, they bring their best selves to work. Strong company culture has many benefits for workers.

  • Improved employee satisfaction: Feeling heard and supported improves overall happiness.
  • Decreased burnout: Employees who have the right tools and resources feel less overwhelmed.
  • Heightened transparency: Building trust opens doors for more communication.
  • Increased team morale: More engaged teams feel more connected and supportive.
  • Better employee well-being: Engaged employees trust that they can speak up about their needs and have their needs met.

Why is company culture great for business?

Investing in your team's culture is a win-win for everyone. Here's how employers benefit.

  • Increased employee retention: Happier employees are more likely to stay, reducing the expense of hiring new team members.
  • More employee referrals: Satisfied employees are more apt to invite their contacts to join the company.
  • Attraction of top talent: Top companies with strong culture attract better talent.
  • Increased employee engagement: Engaged teams care more about their company's success.
  • Enhanced productivity: Employees aligned with their organization's culture are more invested in delivering strong results.
  • Better brand image: Engaged teams improve customer experiences that build brand recognition and loyalty.
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How to create a positive corporate culture

Great places to work have welcoming cultures that employees connect with. Here are four ways to create a culture that resonates with your employees.

1. Align company culture with core values

Your company culture should tie back to your mission and core values. These key brand components guide how your business operates. For instance, if one of your core values is "innovation," you may host regular hackathons. Or you may ask potential employees how they’d solve a challenge to see how they’ll fit in or add new skills to your workforce.

Be clear about your values with your managers and employees. Refer to your values in all employee engagement programs to help team members align with your brand.

Related: Read how core values and team feedback built a unified culture.

2. Empower your managers

Trust is a cornerstone of strong work culture. Engage your managers early in culture improvement conversations so they can offer feedback (even if it’s critical), help with program rollout and gain employee buy-in. Then, empower your managers to create processes or resources for employees during culture changes. When employees see managers set the example, they'll follow suit.

Related: Skilled leaders nurture company culture. Do you need to invest in new leadership development strategies?

3. Measure and gather data

Review HR metrics and use employee survey tools to get a pulse on your company’s culture. Use follow-up surveys or meetings to ask employees how they feel and what they want to see happen next.

Listening to employee feedback and reviewing employee engagement metrics are essential for growth.

Related: How to act on employee survey results to get the results you’re after.

4. Iterate on findings

Quantitative data like reduced employee turnover, increased employee retention or boosted customer engagement indicates positive change. Surveying employees and tracking their responses also shows opportunities.

For some organizations, people may not connect to your core values, or the current recognition program may be stale. That doesn't mean you can't try again. Nurturing company culture means constantly iterating to keep your employees connected to your organization’s brand, mission and purpose.

Be sure to track and share survey and iteration findings with your teams. Be open about what you're testing, what you're hoping to change and how you'll change it.

Get ready. Get set. Go build that team culture.

For any business, an organization's employees are their biggest asset and differentiator. Do your employees feel connected to your culture? Take our assessment to find out how well your organization’s engagement programs align with employee needs.

take our connected culture assessment
Tim Schieffer
Tim Schieffer

Tim is the Employee Experience Insights and Strategy Leader for ITA Group. With 20+ years of experience serving clients in multiple industries, including e-commerce, communications and finance, he offers a unique perspective on how to attract and retain top talent. His passion for delivering personalized employee engagement strategies helps create cultures centered on empowering people. Outside of work, you'll find him cheering on the Green Bay Packers as a proud part-owner. Go Pack Go!