Corporate culture — this popular buzz phrase has been floating around the business world for years. But other than top management, does anyone else in your organization have a clear understanding of what it is and how it affects the company? If your CEO plays his or her cards right, employees on all levels will exemplify what a successful company culture looks like.
To be clear, a healthy workplace culture involves more than ping pong tables in the office, “Bring Your Dog to Work Day,” and other cool perks. According to the Great Place to Work Institute, it means investing in people and creating an environment where employees genuinely trust those they work for, have pride in what they do, and enjoy the people they work with.
Contrary to popular opinion, people are not the company’s greatest asset — the workplace culture is. And when CEOs get serious about creating an environment where employees can thrive, everyone wins. Here’s why:
It drives innovation
“Corporate culture is, above all, the most important factor in driving innovation,” says London Business School professor Rajesh Chandy, who has co-authored numerous studies on innovation. And managers on every level can help build a culture of innovation by inviting employees into processes where their ideas are welcomed, supported and eventually implemented.
There’s less turnover
When employees feel valued at work, they are more likely to stay put. Companies on Fortune’s list of Best Workplaces have about 50 percent less turnover than their peers. And as one Chick-fil-A employee affirmed in a company profile for The Muse, “The culture is the thing that makes people want to spend their entire careers here.”
Customer service/satisfaction improves
Happy, engaged employees typically deliver stellar customer service, and that often leads to satisfied customers who become loyal “brand ambassadors.”
It’s good for the bottom line
A healthy company culture is great for business because it can increase employee commitment and productivity, says Inc magazine. On the flip side, an unhealthy culture can do just the opposite, drag down profits and lead to business failure as well as low employee morale.
It helps your recruiting efforts
According to the Great Place to Work Institute, 93 percent of employees at the 100 Best Companies to Work For say they’re proud to tell others where they work. And that makes it easy to recruit new employees. Many job seekers want more than a paycheck — they’re looking for companies that align with their values, that invest in their employees and whose actions speak louder than the words in their mission statement.
Jeff Chaponick is CEO of MAC Diversity Recruiters, an international search firm that partners with companies of all sizes, including companies such as Deloitte, Nike, and Marsh & McLennan, to help them reach their diversity talent goals. Jeff is on the Board of Directors for the Texas Diversity Council and the National Diversity Council. He is also a member of various professional organizations that help address the disparities in hiring among traditionally underrepresented groups. Make sure to check out my last post.
