Understanding Company Culture

 

Why Company Culture Matters

Company culture is important to employees because workers are more likely to enjoy their time in the workplace when they fit in with the company culture.

Employees tend to enjoy work when their needs and values are consistent with those in the workplace. They tend to develop better relationships with coworkers and are even more productive.

1. Engagement

Employees want a positive workplace culture; they are looking for advancement opportunities and collaboration, among other aspects of organizational culture. By addressing some of these elements, you’re investing in the commitment and success of your workforce. Engaged employees are a powerful asset, and as you’ll see, they are the keystone of the following points.

2. Financial Success

Company culture affects the bottom line. In fact, according to a Gallup meta-analysis of 1.4 million employees, companies in the top-quartile of employee engagement are 22% more profitable than those in the bottom-quartile. If that’s not convincing enough, the same study confirms that engagement can lead to improved customer interactions, meaning that your customers are also experiencing the benefits of your culture.

3. Recruiting

With reports out such as Fortune’s “100 Best Companies to Work For” and Glassdoor’s Employee Choice Awards, applicants are adding culture to their list of considerations. In fact, highly educated job-seekers are prioritizing cultural components, such as company values and growth opportunities. You’ll notice that these considerations are not perks, but instead they are aspects of organizational culture. This can be an important differentiator and a powerful tool in attracting top talent. How do you do it? Check out Netflix’s culture code for inspiration. This slide deck-gone-viral was originally published as a recruiting asset.

4. Retention

Investing in your company’s culture shows employees that you care. When your employees know you care, they feel higher value in their work and are more committed to their performance. This sounds familiar, because we’re talking about employee engagement again (our favorite word around here). According to a study by the Corporate Leadership Council, engaged employees are 87% less likely to leave the organization. Turnover is expensive and rough on morale, and working on your culture is one of the best things you can do to address it.
Moral of the story? Don’t take your employees for granted. Invest in your company’s culture, and you might be surprised at how powerful it really is.
Oh, and don’t worry, we won’t just leave you hanging with this big task and no tips. Keep reading this blog for ideas on how to get serious about your culture.

How to Learn About Company’s Culture

When job searching, it is important to look for jobs where you would fit in with the company culture. However, it is not always easy to understand a company’s culture. Below are some tips for assessing a company’s culture during your job search:

• Check out the company website. In particular, look at the company’s “About Us” page. This will often have a description of the company’s mission and values. Some company websites also have testimonials from employees, which can be a useful way to hear about the culture firsthand.
• Do some research. Beyond looking at the company website, you can also check out a number of online resources that provide details on company culture.

• Ask around. If you know someone who works for a company you’re interested in, ask to set up an informational interview where you can learn more about the company. Check LinkedIn to see if you have connections at the company you can talk to. College alumni, check with your career services or alumni office. You may be able to talk to alumni who are employed by your prospective employer to get a sense of what it's like to work there.
• Ask the right interview questions. The employer will likely ask you questions to assess whether you’d fit into the company culture. However, you can ask questions too. Simply asking, “How would you describe your company’s culture?” is a straightforward way to learn about the work environment. You might also ask about particular elements of the company that are important to you, such as the amount of independent work vs. teamwork, or the day-to-day schedule of an employee.

• Shadow someone. If you are offered the job and are still unsure of the company’s culture, ask if you can shadow someone in the department for a day or a few hours. This will be a useful way to see the office dynamics in play and to ask any remaining questions.

Make Sure There's a Good Fit

Jobs aren't just a paycheck, and, given the amount of time spent working, it's important for both the employee and the employer to make sure there's a good fit. If you're not going to be happy working at a job or for a company, it may be better to pass on the opportunity and move on. Before you accept a job you're not sure about, take some to ensure it's a good fit for your skill set, experience, personality, and goals for the future.