Why Corporate Culture Is So Important for Every Organization

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Corporate culture” is an umbrella term for the shared practices and values of a company’s employees. The corporate culture guides how the employees of the company act, feel, and think. The corporate culture is also the social and psychological environment of an organization. It symbolizes the unique personality of a company and expresses the core values, ethics, behaviors, and beliefs of an organization.

Why Corporate Culture Matters More Than Ever

Today, social media has become so popular that if your company’s employer brand is not strong, people will find out quickly. People tend to use social media to express positive thoughts about your products, services, and overall brand – and to share negative experiences they’ve had with your company.

In this environment, a strong corporate culture is critical to the success of every organization. A great corporate culture can not only attract more candidates to you company, but also drive the performance of your existing employees. If an employee works in a positive and supportive environment, they will be motivated to perform their job well and strive to reach both their individual goals and the company’s goals overall.

In your efforts to build a great corporate culture, your company should place a special emphasis on the following areas:

1. Employer Brand

The employer brand embodies an organization’s mission, values, and culture. It is essentially the personality of your company, the image it presents to the world. The employer brand affects not only the retention and engagement of current employees, but also the recruitment of new employees.

Fundamentally, the employer brand is an integral part of your company’s employee value proposition, or EVP. Basically, it demonstrates why people like to work for your company.

It is important to have an employee brand strategy. Your employer brand is a critical way to differentiate your company from competitors and fulfill long-term recruiting needs.

To build an effective employer branding strategy, your company will need to evaluate its current brand awareness in the marketplace, determine its strengths, and use social media to highlight the positive aspects of working for the brand.

2. Employee Engagement

An employee’s engagement level reflects their emotional commitment to the organization. An engaged employee cares about their job and the company. There is a direct correlation between productivity and employee happiness.

ShoesAccording to a study by economists from the University of Warwick, happy employees are 12 percent more productive at work, while unhappy employees are 10 percent less productive.

The key for every organization is to invest in employee engagement initiatives to drive productivity, increase profits, and stay competitive. Undoubtedly, more engaged employees will yield higher standards of service, higher customer satisfaction rates, and higher profits for the company.

3. Professional Development

It is important for your organization to help its employees grow in their specific fields and build paths for future promotions and career advancement opportunities. Professional development can consist of specialized training, formal education, and informal learning opportunities. An organization that invests time and money into training and career development can expect better-trained employees with clear job performance goals and achievements.

4. Corporate Social Responsibility

In today’s climate, companies must be aware of the impacts of their actions on society. A company should focus on the welfare and benefit of the world – not on simple profit maximization. Put the well-being and interest of society first, and your company will be widely respected for its integrity and empathy. A widely respected company tends to attract more – and better – candidates.

5. Volunteerism

When an organization values volunteerism, it fosters an environment of goodwill. Volunteering one’s time and talent to charitable organizations, providing educational opportunities, and other community service activities can be very rewarding experiences for employees.

Employers can organize group volunteering events during the workweek or give employees time off to volunteer. A group volunteer activity will build camaraderie and encourage teamwork among your employees.

Corporate culture is one of the most important factors that prospective employees consider when deciding whether or not they want to work for your company. Having an exceptional corporate culture will set your organization apart from the competition and catapult your organization to new levels of recruiting and business success.


About the author:

Rhonda Howell is an account manager at NewHire. She is a graduate of Michigan State University and has a diverse background in sales, marketing, and teaching business courses to undergraduate students.


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By NewHire

NewHire (www.new-hire.com) is a recruiting software and services company that believes every job deserves the right person. We provide the candidates, hiring tools, and coaching to help small and mid-sized businesses hire better.