Company Culture Matters More Than Ever
Is your company facing high turnovers lately? Does morale seem low in the workplace?
These days, having the best products, clever marketing strategies, the most talented workforce, or even attractive salary offers aren’t enough to secure long-term talent retention and growth. The one thing that will give your company a competitive edge is actually culture.
Reasons Why Company Culture Matters
1. It helps retain talents; saves the company, saves time, saves money.
A good corporate culture where employees’ action and work are often seen, recognized, and rewarded is a company’s calling card. When employees feel valued and belonged, they become powerful advocates of your company, vouching for your company’s workplace. This strengthens your employer brand and attracts as well as retains talents.
If you’re part of the management team, you may understand that talented individuals are precious assets. Losing them means restarting the hiring process from the ground up, which is time-consuming, uses up resources, and laborious. This makes establishing a healthy corporate culture all the more important to avoid the Great Resignation phenomenon.
2. Gen Z, the future of the workforce, prioritises great culture.
By 2025, Generation Z will make up 27 percent of the workforce. So, what corporate values or cultures does this up-and-coming generation look for in their desired workplaces?
Gen Zs value diversity, equal opportunities, inclusion, and sustainability in business practices. They also crave opportunities to broaden their skills and experiences, rather than being confined to a single skill set. In other words, they reject stagnation and a narrow job scope.
3. A healthy culture increases revenue.
Don’t take our word for it, it’s research-proven!
If every employee in your company carries a unified vision, it fosters a sense of purpose and clear direction in everything they do, leading to higher productivity and thereby, increased revenue. Besides, employees perform better in supportive environments because it helps them cope more effectively with stress.
4. Unhealthy cultures can lead to a company’s downfall.
A toxic culture breeds burnout, turnover, and dissatisfaction. All of which carry the disastrous potential of causing a company’s downfall. Take Uber for example. Years ago, a scandal involving Uber's toxic culture broke out, became widespread, and eventually contributed to its colossal IPO failure in 2019. The widely publicised missteps of the ride-hailing company included volatile leadership, discrimination, lack of transparency, and challenges in recruiting and retaining talent.
Furthermore, an unhealthy corporate culture also impedes organisations from adapting swiftly and flexibly to the constant changes in today’s fast-moving world. A research done by McKinsey & Co reveals that a whopping 70% of transformation failures can be traced back to issues related to company culture.
Conclusion
In essence, a positive company culture is now a top priority for job seekers, and building a good culture starts with establishing an aligned, healthy vision among all employees.
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