Why is company culture important?

People are the heart of any business, and prioritizing their needs in the workplace is a huge competitive advantage. Company culture isn’t just one of those nice things to have – it’s essential. It’s the secret ingredient to a thriving, positive and profitable environment. 

Organizations all over the world are realizing that building a great company culture has so many benefits. From attracting top talent to quadrupling their growth revenue,  read on to find out why company culture is so important.

Attracts the right people

The average adult will spend around 90,000 hours of their life at work. So it’s important that they feel happy, healthy, and valued. 86% of job seekers say culture is an important factor when it comes to applying for jobs. A positive workplace culture is rated even more highly than an easy commute or cushy salary, particularly by Millennials. Current employees make the best ambassadors, which explains why review platforms like Glassdoor are so popular. They let potential candidates get under the skin of a workplace’s culture. 

Retains top talent 

Employers in the US spend more time and money retaining employees than hiring new ones. With the average cost of replacing an employee being 33% of their salary, reducing turnover makes financial sense. Employees want opportunities for growth and development to help them achieve their personal career goals. A company culture that supports this will make sure they stay for as long as possible.

Creates happier, more satisfied employees

Employee happiness relates to how closely a job and an organization align with their own career goals and personal values. Satisfied employees are happier and more motivated on a day-to-day basis. This leads to better communication and collaboration – which are essential for an environment where creativity and innovation can thrive. 

Employee burnout is at an all-time high. Brands supporting and investing in employees’ mental health, wellbeing and overall work/life balance is more meaningful than free pizza (although pizza always helps too). Workplace socials, entertainment, networking events, and a recognition culture all add to a dynamic workplace environment where people feel connected and appreciated.

Positivity = Productivity = Profitability 

Neglecting your company culture is risky (and costly). Disengaged employees can cost companies up to 18% of their annual salary. When employees are truly engaged, they’re not just showing up for a paycheck – they’re passionate about their work and committed to the company’s goals. This translates into a more productive workforce who are loyal, committed, and willing to go the extra mile when needed. And customers can sense when employees are happy too, with positive interactions leading to a better customer experience. 

Resilience to overcome challenges

Unsurprisingly, businesses with a well-established company culture were the ones who adapted to the pandemic best. That’s because employees trusted their leaders and had the positive mindset that was needed to help them through the tough times. There’ll always be challenges around the corner – whether it’s a global recession, a negative client experience, or the ‘quiet quitting’ trend amongst younger employees. But a company’s ability to handle change and navigate uncertainty is something worth investing in.

MOO can help you create a thriving company culture.

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