What is company culture and why is it important?

Company culture is important for many reasons. Here's why...

‘Company culture’ and ‘business culture’ are defined by the values, goals, and structure of your business.

In short, your company culture is important because it affects whether your people enjoy working for you. And that has a big impact on staff retention and productivity.

But this often raises the question, what is a good company culture? And more importantly, how do I set the culture in my business?

Read on to find out.

What is company culture?

Company culture can be a confusing term.

Some interpret business culture literally. They assume that the culture relates to the diversity of those working for the company.

But while diversity can be important, what is culture in business itself?

Well, that depends on how you want to run your company and what you expect from your staff.

For example, some bosses choose a culture where employees and managers have informal relationships.

Others prefer rigid, role-based cultures with strict pecking orders.

There’s no right and wrong answer. As long as you always treat your staff with respect, a positive company culture is the one that works best for your business.

However, it’s still important to get your business culture right. That’s because employees value the importance of culture.

In fact, many will even take a pay cut to stay in a role with the right company culture and values. For example,

  1. 58% of workers would stay in a lower-paying position if they were in a positive culture.
  2. 32% of job seekers would settle for a lower-paying job to be a part of a great company culture.
  3. 88% of job seekers state that company culture is important.
  4. 35% of American candidates would turn down the ‘perfect job’ if the culture wasn’t right for them. 15% of have actually turned down a job offer due to a negative corporate culture.
  5. [24% of surveyed employees](https://www.tinypulse.com/hubfs/2018 Employee Retention Report.pdf) would quit or seek another job if their company’s culture is negative.
  6. 91% of managers in the USA seek candidates who suit the company's values as much as experience or qualifications.

So, company culture is about more than keeping staff happy. It has a major impact on your bottom line.

But once your business culture definition is set, how do you put it into practice?

Building your business culture

By now, you should have a clearer understanding of culture. A strict company culture definition may be elusive, but you should have a way to define your own company’s culture.

Engage in open communication between company leaders and employees. This way, your whole company can understand how beliefs and habits can improve everyday life for everyone.

Your employees will feel much more in the loop about what the company stands for and strives for.

With goals and values clear to see, it’s easier for everyone to get on the same page about what the company is aiming for.

Long story short, this will help your employees work more productively towards your goals. In turn, the company will enjoy the benefits of a more happy and productive workforce

BrightHR can help your HR team learn about the importance of organisational culture so that you can define your culture.

But where do you begin when building your culture?

  1. Understanding HR policies: Make it clear to all employees what your policies state about your culture. This can be incredibly important during challenging times, such as the coronavirus pandemic.
  2. Working hours & flexible working: Keep on track with employees work hours. This opens the possibility of flexible hours that cater to your employee’s needs.
  3. Dress code: Establish whether you expect a smart casual dress code or if you accept casual dress every day. A dress code is one of the clearest indicators of your general company culture.
  4. Working environment: Does your office focus on style or efficiency? The design of a working environment is a great way of expressing your culture.
  5. Staff performance: Knowing how to best support your employees can directly improve your company.

No one understands the importance of culture better than the human resources team.

Managing company culture ensures that employee engagement is positive. It also makes performance management easier to handle.

Frankly, your HR team works hard to make everyone feel included and supported within the company.

However, even the best talent needs help from time to time.

HR support, whether it’s to improve an existing team or your company’s not big enough for an internal team yet, is available with BrightAdvice.


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