The Invisible Advantage
Why Company Culture Matters More Than You Think
It’s been a little while since I’ve written about culture, but it remains so important to my business. If you’re not creating the culture you want, the culture you don’t want is going to develop organically. We don’t drift toward the best versions of ourselves without discipline, and neither does the culture of our workplaces. We cultivate our culture, we celebrate it, we even hire and fire by it because it defines who we are as a business and it lets us know who is going to be a good fit. If you want to attract top talent, salary and benefits are important factors, but increasingly, job seekers prioritize a strong company culture. But what exactly is company culture, how do you build it, and why does it matter so much?
Culture: The Soul of Your Business
Simply put, company culture is the shared beliefs, values, and behaviors that define how employees interact, make decisions, and approach their work. It's the invisible force that shapes the overall atmosphere and experience of working at your company.
A strong culture fosters a sense of belonging and purpose for employees, leading to numerous benefits:
Increased Engagement and Productivity: Employees who feel valued and motivated tend to be more engaged and productive. They're invested in the company's success and take ownership of their work.
Enhanced Creativity and Innovation: A culture that encourages open communication and collaboration breeds a fertile ground for innovative ideas.
Reduced Turnover: Happy and motivated employees are less likely to leave for other opportunities. Building a strong culture helps retain top talent, saving your business time and money associated with recruitment.
Improved Employer Brand: A positive culture attracts talented individuals seeking a work environment that aligns with their values.
More Fun: When people are thriving and you know you have the right team around you, everybody has more fun. You want your people to wake up on Monday morning and not dread having to go into work.
Building Your Culture
Some folks have come to believe that a strong, healthy culture requires ping pong tables, free snacks, and maybe beer on tap (although those can be perks!) just because it has worked for some others. It takes a conscious and ongoing effort from leadership. Here are some key steps to consider:
Define Your Core Values: Start by identifying the core values that guide your business. What are the fundamental principles your company stands for? These values should permeate all aspects of the organization, from hiring practices to decision-making processes.
Lead by Example: Leaders set the tone for the culture. Ensure your leadership team embodies the company's values and behaviors.
Foster Open Communication: Encourage open communication from the top down. Employees should feel comfortable sharing ideas, concerns, and feedback.
Recognize and Reward Desired Behaviors: Recognize and reward employees who exemplify your core values. This reinforces positive behaviors and motivates others to follow suit.
Invest in Employee Development: Show your commitment to employees' growth by offering training and development opportunities. This helps them feel valued and contributes to a more skilled workforce.
The Hiring (and Firing) Compass
Company culture plays a crucial role in attracting and retaining the right talent. Here's how:
Hiring for Cultural Fit: When recruiting, go beyond skills and experience. Look for individuals who resonate with your company values and demonstrate behaviors that align with your culture. This might make your hiring process take longer, but I promise you won’t regret taking the time to get the right people.
Performance Management based on Values: Integrate your company's core values into your performance management system. This ensures employees understand how their actions and behaviors contribute to the overall culture.
Beyond the Perks: Avoiding Misconceptions
While some companies might showcase extravagant perks or a "work hard, play hard" mentality as hallmarks of culture, it's important to avoid misconceptions.
Culture Isn't a Facade: A strong culture isn't about creating a superficial image for recruiting purposes. It's about genuine values and behaviors that are deeply ingrained in the organization. Many organizations will tell you what their culture is, but high turnover and disgruntled employees tell a different story.
Fun Doesn't Mean Frivolous: A positive work environment is important, but it shouldn't come at the expense of productivity or professionalism.
Culture Requires Work: Building and maintaining a strong culture requires consistent effort and adaptation. It's an ongoing process, not a one-time fix.
The Dark Side of Culture: When Things Go Wrong
The word “toxic” gets thrown around a lot, and just because your manager wants you to do your job, that doesn’t mean he or she is “toxic.” However, toxic cultures exist and most of us have probably experienced one of them. A toxic company culture can have significant negative consequences:
Low Morale and Productivity: Employees in a toxic environment experience low morale, leading to decreased productivity and higher rates of absenteeism.
Employee Turnover: A negative culture drives employees away, creating a revolving door of talent and hindering overall business success.
Harassment and Discrimination: In extreme cases, a toxic culture can foster environments where harassment and discrimination run rampant.
These types of cultures show up where values are communicated but never/rarely modeled. Your employees aren’t stupid and they know when you aren’t practicing what you preach. Likewise, these might be cultures that develop when we aren’t intentional about healthy culture.
Creating a Culture That Endures
We all know companies that are recognized for their enduring cultural qualities. Think of Chick-fil-a. Every time you hear “my pleasure” as your meal is handed over, you’re experiencing the culture of Chick-fil-a. Company culture is a dynamic entity that needs to evolve with your business, but you should be able to grow and maintain the soul of your company. Here are some tips to ensure your culture remains strong:
Gather Feedback: Regularly solicit feedback from employees to understand their perceptions of the company culture. And be genuine about it. Many employees give weak feedback when they believe they’ll be punished for honest answers.
Be Adaptable: As your business grows and changes, be willing to adapt your culture to ensure it continues to reflect your values and resonate with your workforce. Your Friday tradition of going to lunch with the whole team might not be realistic once you’ve grown from 5 people to 25 people. Find ways to replicate the fun you had in the beginning as you scale upward.
Lead with Integrity: Upholding ethical practices and building trust are essential for a sustainable and positive company culture. I can’t say it enough– you have to model the values that you expect from your team. They won’t follow an idea if they’re not seeing you live it out.
In conclusion, company culture is not a buzzword and it’s not something you stumble into – it's a driving force behind business success. You have to identify it and put values to it. You have to cultivate it by living it out and encouraging those who do the same. There’s more to success than making more money. One of the most fulfilling things you can do is build a place where people love to work. Go make it happen!