Picture this. A job seeker sees an open role at the business of their dreams. But when they look at the company’s reviews they see six words that convince them not to apply: the company culture here is toxic. Yikes.
Company culture is a powerful thing, even in today’s virtual world. In fact, Indeed and Glassdoor’s recent Hiring and Workplace Trends report predicts it will be essential in 2023. And with quiet quitting on one hand and a predicted difficult hiring year on the other, investing in your business’ culture is crucial if you want to stay competitive.
And yet, what feeds the culture of a company has changed—over the years, and through the generations. For example, 66% of Gen Z say more investment in mental health will improve it.
In this article, we’re going to define what company culture is, why it matters and a few tips you can use to improve it.
What is company culture?
Sprout’s Director of Employee Experience, Molly Jones, said it best: “Company culture is an amalgamation of organizational values, the environment created by leadership, communication style and general atmosphere of a company.”
The way company and business culture is viewed today has shifted. So much so that the concept as we knew it has reached meme territory.
And the answer to “What is company culture?” has become more complicated. Two years of hybrid or remote work and a renewed take on work-life balance has thrown the ball in the employees’ court. In fact, over half of employees would consider leaving their job post-COVID if they weren’t offered flexibility.
In short? Stocked fridges and foosball tables alone won’t cut it anymore.
Why is company culture important?
Has the company culture definition become more complicated? Yes.
Does it still matter? Also yes. In fact, it remains vital—even if the water cooler talk has gone virtual.
Here are a few key reasons why the culture of a company matters, and why it should be prioritized.
Company culture can impact reputation
If you have a great company culture, people will hear about it.
And if you have a toxic one, people will definitely talk about it.
From getting obliterated in BuzzFeed articles to driving talent away, bad work environments can hurt your business. According to LinkedIn, 40% of employees said colleagues and culture was their top priority when picking a new job.
But a stellar business culture is something employees want to post about (employee advocacy, anyone?). And that goes a long way—employees are 3x more likely to be trusted than a CEO when it comes to finding out what it’s actually like to work at a company.
Stellar companies retain stellar employees
With great companies comes great employees…not the best riff on a famous line, but you get the gist.
A strong company culture will be more attractive to strong talent. A toxic one will not only lose their competitive edge—they’ll also lose valuable people. Toxic work culture was part of the fuel driving the “great resignation,” according to MIT.
In a recent Sprout Social survey of 300 marketers, 67% agreed that company culture impacts their connectedness to a company. And more connected employees are more engaged employees.
People want to stay at great companies. Period.
A great organizational culture boosts employee engagement
Working somewhere you love and doing meaningful work inspires the opposite of quiet quitting. It translates into higher employee engagement.
Engaged employees are the best advocates for your brand and for reinforcing company culture. And, it has to be said—they’re also great for business.
According to our recent data, a whopping 81% of marketers agree that engaged employees directly impact their customers’ experience with their brand.
How to identify the culture of a company
You can’t improve any of this until you understand where your business currently stands.
After all, company culture is much more than the text on a mission statement. As Molly put it, “It's tangible in the company policies, rituals and benefits, and intangible in the sentiment toward the organization and the depth of individual and team connection.”
That being said, here are a few ways you can evaluate yours.
1. Talk to your employees
How do they feel about their employee experience? How do they think you need to improve company culture? What changes would they like to see?
Prioritize getting feedback from the people your business culture will impact most, and show that their opinion is valued and impactful. H&R Block did this when determining their return-to-office policy, turning to employees and designing their system around them.
Use surveys to keep feedback anonymous and detailed. Or tap focus groups for real-time feedback.
Whatever option you choose, Molly provided a valuable piece of advice: “Companies need to be specific about their asks and intentional with their questions.”
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— H&R Block News (@HRBlockNews) October 25, 2022
