The concept of company culture, what it means and the benefits it can bring to an organisation have become more widely understood in recent years as companies strive to be competitive and been seen as an employer of choice in their sector and local area.
Defining Company Culture
So what is company culture? At its core, company culture refers to the shared values, beliefs, behaviours, and practices that shape a business. Some people have described company culture as the personality of a company, some have said it is something intangible like an invisible glue that holds everything in a company together and in a recent article published by Forbes they used the following definition, “company culture is the collection of unwritten norms, beliefs and collective attitudes that shape how things get done within your organisation and this means it can contain any combination of elements”.
The Elements of Company Culture
As the above definition from Forbes suggests, to get under the skin of what company culture is you need to look at the main elements which help to create its backbone.
MVV – The mission, vision and values are the guiding principles that set out what is important in your company. They establish the company’s purpose and a road map for what it wants to achieve, how it plans to get there and the values that will underpin the actions taken along the way. Employees need to be aware of and understand these elements so that the foundations of a company’s culture are firmly laid.
Norms – These are the daily routines and rituals that take place in the company. Sometimes these norms are guided by policies and procedures but often they are intangible and unspoken and can be summarised in the way that business guru Marvin Bower described culture as being, “the way we do things around here”.
Communication – Employees need to understand the company culture and being able to articulate and communicate the culture is vital. Some companies have slogans which reinforce their culture painted on the walls in their offices. Others share stories in newsletters or other methods of communication about how employees have successfully lived out the company values. These messages provide a sense of identity and consistency so that everyone ends up on the same page.
Environment – The working environment, whatever sector your business is in, also impacts on the culture of a company. If team working and collaboration are vital to your company then don’t have staff who are segregated and work in silos. Likewise, if your business thrives on innovation then make sure that you invest in technology and that your workplace reflects that.
People – Employee behaviour and attitudes have a huge impact on culture. It is crucial that senior staff live and breathe your company culture. Leaders set the tone, and their actions, interactions with colleagues and decisions must reflect and reinforce the cultural norms. If they don’t then your culture is going to fall at the first hurdle.
The Importance of Company Culture
A strong, positive and progressive company culture is important if a business and its employees are going to thrive and be successful. Company culture can have a genuine impact on different areas within a business and can help the company to get ahead, and more importantly stay ahead, of its competitors.
According to the CIPD the employee turnover rate for UK workers is currently around 35%. If over a third of your employees are leaving each year then that is not only going to be expensive but will also be hugely disruptive for your business. By employing, and if needed recruiting, employees who buy into and are motivated by your company culture you will improve employee retention and engagement as these staff will be loyal and will share the same values as the company. This is a powerful combination for success as engaged and motivated employees are typically high performers. They go the extra mile and that helps to drive overall performance and productivity within a company. If your company culture is communicated externally, then not only do you become an employer of choice who candidates are falling over themselves to work for, but you also attract clients and customers who share the same values and ethos and want to be associated with such a company. The world around us doesn’t stand still and companies with a strong culture are also better equipped to handle the changes and challenges which will undoubtedly present themselves over time. A unified culture provides a solid base during times of change and helps a business to deal with the uncertainty that change brings. Having a strongly rooted culture helps a company to adapt, grow and come out of the other side of the change in a healthy position.
Company culture is the driving force behind employee satisfaction, organisational success, and long-term business sustainability. If a business can nurture its culture so that it is lived out on a day-to-day basis then this will pave the way for innovation, growth and continuing success.
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Why not also check out our blog on a similar topic The Importance of Workplace Culture
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