Corporate culture has always been an important factor in business. However, the idea has become an increasingly popular talking point over the past decade.
Many consider it a buzzword because of how often it is used among human resource managers, but it is a defining factor that shapes attitudes and behaviors throughout the organization. According to a Deloitte Study:
believe that a distinct corporate culture is vital to a company's success. Building a culture may sound like a difficult process, but the time, effort, and resources involved in its creation will undoubtedly pay for itself in due time.
What are the benefits of building a corporate culture?
Increased Employee Retention
Strong and shared corporate culture allows recruiting partners to find potential employees that will best integrate with the existing vision and values expressed by the business. Companies should actively market their culture to candidates to attract those that are excited to work for a brand with such ideologies.
This will naturally breed more engaged workers who are statistically 59 percent less likely to search for a new job in the next 12 months.
Improve Employee Productivity
Employees who are a cultural fit are almost always engaged and happy to perform great work for the organization. Happy workers are 12 percent more productive than the average worker, while unhappy workers are 10 percent less productive, according to a study by the University of Warwick.
Increased productivity directly correlates to greater revenue and profits for the company!
Build Brand Reputation
Many modern brands can be identified solely by their culture. Companies such as Google, Netflix, and Tesla are strong proponents of company culture and have built their organizations around these ideas. Whether you believe it or not, reputation and public perception matter.
89 percent of potential employees would not apply or continue to work for a company that has a bad reputation with former employees or the public.
What are the benefits of building corporate culture?
Culture is shared.
A strong culture is defined by values that are shared amongst everyone within the organization. It is not something that simply exist amongst upper-level executives and supervisors. The attitudes, beliefs, assumptions, and overall ideology of a company's culture needs to be adopted by every single individual within an organization.
Culture is pervasive.
Contrary to popular belief, culture should not merely apply to the way employees complete their daily work tasks. It should also guide how employees engage with customers, how they present themselves, and how they interact with co-workers to solve complex problems within the organization. Overall, culture is a mindset and should present itself in nearly everything that occurs at the company. We've shared our own Insource Keys in previous blogs as an example of guidelines to reinforce company culture.
Culture is enduring.
While dynamic, the core foundation of corporate culture should be enduring and last throughout the long term. Recruiting departments should recognize the culture and make hiring decisions based on who may be a cultural fit, as well as those that may make useful additions to existing ideologies. Over time, corporate culture should reinforce itself and become increasingly resistant to external influences.
How is Your Company's Culture?
Corporate culture is often an afterthought for most manufacturing and warehousing companies. However, it must remain front and center within your orgaization to guide employees and facilitate a highly productive workplace for all. At Insource, our team has decades of experience managing operations and identifying innovative ways to optimize labor strategy to promote productivity and efficiency in a way that is cost-effective.
To learn more, download our infographic to discover the six labor moves to improve operational efficiency, or connect with us.
