1. Clarity of purpose.
Company’s care about culture because culture reflects their purpose, or “corporate strategy.”
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It’s not enough for a company to merely prescribe a purpose for its employees; they also have to buy into it. They have to feel that what they do matters, and has a measurable impact on the success of the company. Sometimes, the initial purpose may become cloudy when companies focus on short-term goals like profitability or cost-cutting. It is vital for the leadership team to continually revisit its overall purpose and remind themselves, and their employees, what they are working towards. Business is constantly in a state of change. There is unpredictability which demands adaptation, and change is key to keep its purpose in check and at the heart of every big decision. It allows the company to navigate through difficult times.
2. Employee engagement.
Company’s also care about culture because it’s crucial to keeping employee engagement high. From a company’s point of view, employee engagement refers to how well you’ve prepared your employees to fulfill their purpose. Are there distractions or inefficiencies throughout the company? If your employees don’t feel empowered to fulfill their roles to the best of their ability, you have an engagement problem. In a 2013 survey by the Harvard Business Review, 71% of respondents ranked employee engagement as very important to achieving overall organizational success. A highly engaged workforce can increase innovation, productivity and performance. It also reduced costs related to hiring and retention. If a company wants to attract the best talent, they also have to show they have a low turnover rate and make employees feel they are being recognized for their efforts.
3. Employee referrals.
From an employer’s point of view, building a great culture starts with the people you decide to have on your respective teams. Investing time and effort to ensure the proper person is selected is fundamental to the success of the team and will pay off huge in the long run. If you’re a hiring manager, this means hiring very carefully. If you’re a job candidate, this means you must understand company culture extremely well so you can demonstrate your fit with the company’s culture. If you’re a current employee, it means only referring people who you know will fit with your company’s culture. An ideal candidate can become a disaster if this is not the case. Relying on employees to recruit people is not only cost-effective, but is reassuring to the rest of the team that the new hires will easily assimilate. It also empowers the employees, giving them a sense of ownership and making them feel more engaged, which feeds back into the building of the culture itself. All of this together makes company culture very important
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