Before we consider the importance of company values we need to understand what company values are in the first place.
What are company values?
Company values are similar to personal values in that they are essentially the foundations of your business and are what make the business what it is. The website Culture Amp defines company values as being, “the guiding principles or underlying rules that shape how organisations do business, make decisions, determine priorities, and work together”. They go on to add, “company values celebrate the aspects of your company that make it a unique place to work”.
Why are company values important?
As the above definition outlines company values should be at the heart of an organisation and therefore their importance should not be overlooked. On a day to day basis a company’s values are significant in a number of key areas, let’s take a look.
Decision-Making
Company values provide a framework for making decisions. Values guide decision makers when they are faced with complex and challenging situations so that they make the best decision for the organisation as a whole. When values are clearly established and understood there is then a consistent approach to decision making ensuring that all actions align with the company’s mission and vision. For example, if a company holds a core value of integrity then it will prioritise honesty and transparency in its business dealings and how it treats its employees.
Company Culture
As we looked at in our previous blog the culture of a company is crucial to its success and values play a key part in shaping the culture of a business. Values will influence how employees behave and how they interact with each other and also with clients and customers. By creating and embedding a set of core values a business will establish a working environment in which everyone feels connected to a shared purpose, essentially they will understand how they fit in and how the contribution they make will have a positive overall effect. This not only boosts morale but also enhances productivity and innovation, as employees feel more motivated and aligned with the company’s goals.
Talent Attraction & Retention
The current job market is difficult and employers can struggle to recruit the talent they need to bring success to their business. Company values play a crucial role in attracting and retaining employees especially if employers can demonstrate a clear set of values with which people are aligned. This can help a company to become an employer of choice within its local area or industry sector and therefore have the pick of available talent. It’s crucial though that employers don’t just talk about values but that on a daily basis those values are lived out within the company. If that happens then employees will buy into what the company is doing as they have a shared set of values and sense of purpose. Employee retention will consequently improve, this will reduce costs and improve productivity.
Brand Identity
Companies sell themselves by establishing their brand, and values are a key component of a company’s brand identity. Brand identity sets a company apart from its competitors. By clearly and consistently demonstrating its values, a company can build strong, lasting relationships with customers, and this in turn breeds brand loyalty and enhances a company’s reputation.
Customer Experience
Company values are essential to build a positive customer experience. Employees who adopt and live out the company’s values in their interactions with customers are more likely to deliver consistent and exceptional service. Customers who receive a service that is based on values such as trust, integrity and honesty will become loyal, they will become advocates and ambassadors even for your business as the will shout about their satisfaction and this will generate repeat business and also new business which creates success and sustainability.
Long-Term Success
Ultimately, company values are a foundation for long-term success. Values allow an organisation to remain focused and when times get tough, values are there to enable a company to be resilient and to face tough decisions in the right way. Businesses which uphold their values in the long term are more likely to see sustained growth and prosperity.
If you don’t yet have established values within your business then it’s never too late to start. The process of creating values can be fun, interesting and ultimately hugely rewarding. Remember to involve everyone, talk, listen and if you need help then let us know.
Do you have any questions about todays blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
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Why not also check out our blog on a similar topic Is Workplace Culture A Benefit?
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