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Why Company Culture Matters
More Than Ever

company culture

Making a profit is the goal of most businesses. It is, however, a goal that requires many things to line up correctly. While anyone with a good product or service can turn a profit over the short-term, businesses that want to stand the test of time need to make sure that they're well-regarded in the public eye. Doing so means creating a positive company culture, something that has become more important over recent years. To understand why a positive culture is so important, one must look at the company's culture through the lens of its employees, the public, and through those more concerned with the bottom line.

How Companies See the Business

Employees want to work for a company with a strong - and positive - company culture. It's not just about the workplace being fun or happy - it's about providing opportunities for advancement, growth, and personal development. Employees are aware of their place within the overall organization and want a culture that either makes those positions secure or that gives them the opportunity to move within the company. The way that employees see a business is significantly impacted by the way that the company's culture is organized.

As you might image, this perception can be directly linked to employee retention. Many employees will abandon a position even if it has a great compensation package if they don't feel comfortable at their place of work. The era of working for a single company for decades is over, especially if that company does not foster a culture that is perceived to place value on its employees.

A Business' Public Perception

More than ever, a business' culture is under a microscope. One only needs to take a look at the latest news headlines to see one scandal or another, largely related to the way that a business conducts its internal business. It's not just about corporate malfeasance anymore - it's about the way that a company interacts with its stakeholders and employees during its operations. Closed doors no longer really exist, especially with the existence of websites that are more than happy to help disgruntled former employees to air their grievances.

Companies today need to be aware of everything they do. For example, it's vital to know what interview questions to ask - not just to remain compliant with the law, but to make potential candidates feel comfortable with the corporate culture. It's important that hiring and promotion metrics are open and fair and that the ways that employees and clients are treated seem equitable. A company that has a positive culture may not seem particularly newsworthy, but it keeps the company out of the negative headlines and allows it to function without undue negative attention.

The Bottom Line

To some degree, culture even impacts the company's bottom line. Employers and employees alike say that the corporate culture of a company influences factors like productivity, with companies that have positive cultures performing better than those without. There are certainly cut-throat companies with unpleasant cultures that can perform very well, of course, but these companies are the outliers. In general, people tend to work harder for those companies with which they feel a connection. Happy employees are even great sources of referrals for both clients and future workers. In short, a good culture leads to a better-functioning business.

It's more important than ever for a company to pay attention to its company culture. It impacts how its employees see the business, how the public perceives the business, and ultimately how well the company can achieve its own goals. It's not always easy to create a strong company culture, but doing so is more than worth the effort. If your company is able to create a strong foundation from which it can grow, it will be able to meet the challenges of the future without having to deal with a significant amount of scrutiny.

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