Company culture is arguably one of the most significant components to your business. Businesses that lack a strong company culture are those that focus solely on what upper management wants or expects. A great company culture occurs when management and employees share the values and practices of an organization and they align with your long-term goals. Creating this type of culture within your business makes team members excited to be part of your mission.
Both small businesses and large corporations benefit from a better company culture. Here are seven benefits that will make a difference in your business success.
1. Increased Employee Retention
When employees are excited about their job and daily responsibilities, they are less likely to resign or quit for another job. The cost of losing an employee varies depending on their position and pay from 16 percent to 213 percent of their salary. That means you can save $3,000 to $8,000 per employee making $50,000 or less.
2. Recruit Better Talent
Intentionally creating a strong culture that cares about employee opinion makes outsides want to be part of your organization. When the time comes that you do need to hire, it is easier to attract quality talent instead of the same lackluster leads. Hiring the right talent is essential to maintaining a positive culture as well as achieving goals.
3. Improves Brand Reputation
The way your community, whether online or local, views your business has the power to catapult you to more sales. A strong culture creates a buzz about your business in the community. When this buzz is positive, it makes a business look exceptional and makes customers want to do business with you.
4. More Productive
A strong company culture increases productivity within your organization in myriad ways. First, when employees are happier, they show up consistently and take fewer sick days. Happy employees want to be at work and give 100 percent effort while they are there.
5. Better Decision-Making
A strong company culture includes a well-defined mission, vision and corporate values which makes decision-making easier. When there is a question, any employee, manager, or leader can find the answer within these items. As a result, decisions will be better aligned with company goals and increase your chances of achieving success.
6. Generate More Revenue
Not only does a strong company culture make employees want to be part of your organization, it also makes customers want to work with you. Over time, you will see customer retention increase as they establish loyalty to your brand and build relationships with employees. These loyal customers will refer others to you and are willing to spend more on products or services.
7. Bigger Bottom Line
Since most businesses are established to make a profit, it is important to look at the bottom line results, too. Combining all of these benefits increases sales and decreases expenses on several levels which results in more profits for your business.
Focusing on culture may be a new task for your business. Building a strong culture creates an enjoyable, encouraging, and inspiring work environment that everybody wants to be part of. Your business will quickly see the above benefits when it’s done right.