Why corporate culture is becoming even more important

Corporate culture has arguably always been important, but it has only become a popular topic of discussion in the past 20 years or so. For some people, it’s become a buzzword, losing some of its meaning due to the overabundance of content and the discussions surrounding it. However, I would say that corporate culture has never really been overstated and in fact becomes even more important as the modern workplace continues to evolve.

Why am I saying that ?

The benefits of a strong culture

First, there are obvious benefits to having a strong, unified corporate culture underlying your business operations:

  • Identity. To begin with, culture contributes to the identity and values ​​of your company. For example, if your corporate culture prioritizes setting and achieving goals, your employees will be more likely to set and achieve their own goals. It’s a good way to set and maintain the direction of your employees, and without it it’s hard to keep your company values ​​consistent.
  • Retention. A a strong corporate culture attracts better talent and, more importantly, retain that talent. When people feel like they belong in an organization, they are more likely to stay for the long term. This means lower turnover, fewer new hires to deal with, and better chemistry on your team.
  • Picture. Corporate culture too adds to your brand identity. If you treat your employees well and have a fun corporate atmosphere, your customers will see you as a generous and fun brand. Depending on your target demographics, this could be a major boon to sales and customer retention.

These are principles of branding that you are probably already familiar with. Culture as a whole is going to become more important, which means that all of these dimensions will increase with this expansion. So why is this importance starting to increase?

Trends and competition

One of the biggest motivators is that corporate culture is becoming more popular consideration and development. More and more companies are focusing their attention on creating deeper brand cultures and preserving them through continuous development. Why? This is at least in part due to the fact that we talk more frequently about culture. Studies have indicated measurable increases in turnover for companies with a poor or no culture, and conversely, culture is mentioned more frequently between entrepreneurs.

You might think this is a working scenario – that I encourage you to focus on culture more just because other companies are doing it. But remember, these are the companies that you compete with, both to hire new people and to attract customers. If you don’t at least keep up with a strong culture and find a way to differentiate yourself, you’re going to fall behind.

Millennium expectations

Like it or not, Millennials are the generation driving change in the workplace for the foreseeable future. If you fail to attract Gen Y talent, your growth may stagnate and you could eventually end up with a talent shortage.

That said, millennials want a strong corporate culture (in one dimension or another) more than anything else in deciding who to work for. If you don’t have a strong or attractive company culture, you will start to lose the recruiting war and quickly.

The startup economy

It’s also worth noting that the modern startup economy has added some interesting variables to the entrepreneurial community. Entrepreneurs today have virtually unlimited digital resources to build businesses, and these businesses (especially in the tech industry) have the potential to take off or fail relatively quickly. This increases the need for differentiation in the market, especially in competitive industries, and forces entrepreneurs to find a sticking point for workers who might otherwise bounce back from a short-term assignment.

Is it time for a cultural audit?

Once you understand that corporate culture is really important to the future of your business (and is about to become even more so), you might want to do a ‘culture audit’. . Essentially, it’s a way to assess where your culture is today, see what is missing (if any) and make a plan to make corrections.

  • Theory. How defined is your corporate culture? Where is it defined? How is it defined precisely and are these plans available to your new hires?
  • Agreement. How would you rate your employees’ current understanding of your company culture? Survey your workers. Do they have a reasonable knowledge of your brand values?
  • Consistency. Even though your employees understand your culture, they may not apply it or “live and breathe” it consistently. How often do you see your team leaders not embracing your ideal culture? What about your workers?

There is no single heading for a ‘right’ company culture – every business is different – but you will need a cohesive and strong set of values ​​if you want to stay competitive in the near future. It will only get more important from here on out.

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