Corporate culture is becoming increasingly more important than ever. In fact, 92% of executives say that they believe improving their firm’s corporate culture would improve the value of their company. A strong organizational culture can help create the competitive advantages your business needs. Those advantages involve better productivity, creativity, profitability, firm value, and growth rates, and 50% of executives agree. Below we will discuss why company culture is important and why your business should prioritize it.

Defines a Company’s Identity

A business is more likely to succeed when its standards, goals, mission, and expectations are defined. When your company has an effective culture, employees can understand the expected outcomes of your business. Employees will have an easier time applying their behavior to fit what the firm expects. For example, if a company emphasizes setting goals as a priority, its employees will follow and focus on setting goals. 

Increases Employee Productivity

A more engaged workforce is likely to be more productive. When employees’ needs, values, and expectations are consistent with their employers, they will be more enthusiastic about working. For example, employees who value creativity will feel more empowered to unleash their imagination when they know their company culture also values creativity. Not only will employees individually become more productive, but employees will begin to work more effectively as a team. A strong corporate culture will help encourage employees to work towards a common purpose together.

Decreases Employee Turnover

Employees are less likely to leave an organization where they feel like they belong. A strong corporate culture helps increase retention rates and filter out employees who could not have been a good fit for a brand by fostering a sense of belonging in employees connected with the culture. This means that your business will have more enthusiastic and engaged employees staying longer, and your business won’t have to spend as much on training and hiring new employees.

Influences a Brand’s Outer Image

Customers often judge a brand based on its image. Though many factors can influence a brand’s image, one significant factor is company culture. That’s why it is essential to have and emphasize a solid and appealing corporate culture. If customers like how a business operates, they will be more inclined to think positively of the brand and support it.

However, as important as it is, corporate culture is only beneficial if done right. That’s why it’s important to note that there is no “one-size-fits-all” type of corporate culture that works for each company. Each firm has its own personalized company culture that fits its goals and mission. At ActionCOACH Houston Inner Loop, we specialize in helping and coaching business owners to better enhance and understand their business, and developing a strong organizational culture is part of that. If you want to understand or strengthen your current personalized culture, contact us today to help you take advantage of these benefits.