why a positive company culture matters.

Once upon a time, your corporate culture was a side note rather than a crucial part of your talent attraction and retention strategy. That approach doesn’t work today. If your culture isn’t engaging your existing workforce and attracting new talent, you’re missing out on a big opportunity. Here are several ways a positive company culture can transform your organization and your employees’ happiness.

impact of a positive company culture on your employees

employee engagement

Engaged employees are happy employees. They’re more productive, hand in better work, and develop more robust ideas. A bonus: when your employees connect with their colleagues and work, they become brand ambassadors for your organization. That word-of-mouth praise is invaluable in keeping your talent pipeline flowing.

employee retention

Employee turnover is closely correlated to employee satisfaction and, therefore, culture. If employees experience a positive work culture and a great work environment, it fosters a sense of community and drives employee loyalty. When a workplace is a mismatch for an employee’s values, they’re more likely to look externally for new opportunities. On the other hand, when your culture aligns well with an employee’s, they’re more likely to seek internal opportunities to grow.

productivity and efficiency gains

When employees feel like a part of a work community and receive support, encouragement and open communication from their team and leaders, they’re more likely to contribute to the business and strive to make the organization proud. They’re more innovative and engaged with the work they do. That leads to better job performance and, ultimately, results. Increasing employee efficiency, even marginally, adds up and can make a big difference to your bottom line, if your entire workforce is feeling it.

impact of a positive company culture on your customers

customer retention

There’s a quote by Richard Branson, founder of Virgin that goes, “If you take care of your employees, they will take care of the clients.” All organizations should live by these words. If you respect your employees, they pass that respect on to customers. Great employees are the key to keeping great customers happy.

customer acquisition

Employees who are happy and engaged at work take more initiative than disengaged employees. If you have a strong company culture, you’ll be able to attract go-getter employees who reach for the stars and have the skill and experience to pull in big clients. Ensure your culture supports and encourages ambitious employees.

your reputation

Your culture is an integral part of your company’s overall reputation. Positioning your organization as a great employer that prioritizes employee well-being can differentiate you from competitors. If you’re known as an innovative or forward-thinking employer, that will also translate to your consumer-facing brand. Your stance on social issues can also be critical. People feel good about supporting (and working for) companies that make a difference in areas such as diversity, environmentalism and giving back to the local community.

Today, employers must step up and show they care about important issues to workers. Your company culture is the best way to communicate that message and ensure you have an endless stream of top talent who want to work for you.