Most managers and leaders believe hiring the most talented or skilled people are the most crucial aspects of building a successful business. While this may be true to a certain degree, it is certainly not considered crucial. What is crucial in shaping the culture of your business. Why? Because it is the character and personality of your business. It is what will stand out about your business and how employees will operate (or change) being a part of the company or organization. Think about it, if you were asked what you think will make a business a good place to work, would you immediately consider the compensation or the benefits? Or will you consider the work-life balance and flexibility offered to its employees? These are some of the reasons workplace culture is so important in business. After all, the main goal is to get the best out of employees. Here are four reasons why it is so important to develop a good workplace culture in business:
#1: Loyalty Increases
Having a business with a good workplace culture means your employees are more willing to get up in the morning every and not only work but provide exemplary customer service. This is because they feel that they belong to the business and they are willing to work towards its goals as if it was its own. Ultimately, a good workplace culture ends up building a huge sense of cohesion and confidence among the workers. One of the things that successful business owners believe is to increase employees' loyalty through incentives, flexibility, and appraisals. I am not saying this will always be enough when you want your employees to be always motivated, but it is certainly a way to maintain motivation 95% of the time. How so? Because you can appeal to their sense of need and money cannot always do that. A good workplace culture can.
#2: Employee Retention Improves
Unfortunately, in business, it is not unusual to see employees wanting to leave businesses for more money, better opportunities, or other reasons. To be fair, I want to note, not all employees leave because they are unhappy or not paid enough. As a matter of fact, because of workplace culture, many employees have a difficult time leaving and often remain in businesses for more than 10-15 years before leaving. Despite wages, employees prefer to work in a place where they are valued or where they are seen as a person and not as an employee with a sill or talent hired to generate revenue. While money matters, providing a good environment within your business is the key to retention. The workplace culture has a direct impact on the relationships that exist within your business. There is actually genuine care and concern for each other and this leads to a higher degree of employee engagement. So, not only your employees will benefit from a good workplace culture, your overall business will too.
#3: Employees Operate As Family
When you have a good workplace culture in place, the behaviors of all employees are often shaped to ensure continuity in business relationships. Yes, everyone knows not everyone will always get along, nor will share the same values or morals. But isn’t that what being in a family is…having differences? Occasionally, when a new worker arrives at the organization, he/she will immediately recognize there is a culture of cohesion among workers and that everyone is always ready to help someone in need. So, the new worker naturally begins to conform to this workplace culture over time. Ultimately, you will see the other employees begin to treat the news person as they do one another, essentially welcoming them to the family. In order to achieve this, the example needs to come from above. So, the leadership needs to set the example so that it can be replicated by all employees.
Many startups today value their colleagues as family. At Bookipi a tech startup in Sydney onboard every new employee with a presentation emphasizing that they’re a family. This is important, even for a company that just makes invoice template tools for small businesses.
#4: Attract High-Quality Talent
As we already mentioned above, a good workplace culture allows you to retain talented workers. However, it can also help attract new high-quality talent. When your employees are happy to go to work, they spread the word or brag about their workplace. Some employees even go as far as sharing job openings to friends or family members. Recruitment is not always only offering employees a good salary, it is also about offering them what other companies may not. Think about it, if you apply for a job are you looking at just the money or what incentives come with it (i.e. work from home opportunities, no weekend work, etc.). A lot matters when attracting high-quality talent. The goal is to competitively hire skilled and talented workers to ensure retention benefits.
While intangible, workplace culture creates a clear distinction between businesses that are great to work and one that is toxic. After all, it defines and affects not only the way leadership and employees communicate with each other, but how they work together. It is just common knowledge that when you have a good environment at work, you will have better performers. While you may be extremely smart and creative, you can be sure that you will only get the best from your skills and capabilities when you are surrounded by an encouraging environment that values people.