Why Company Culture Is So Important

We’ve all heard the phrase “company culture” and the impact that it can have on employee satisfaction and company growth. But what does that really mean and more importantly, how does it affect an organization from a macro viewpoint? Wikipedia defines company culture as “the behavior of humans within an organization and the meaning that people attach to those behaviors. Culture includes the organization’s vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits.”

In layman’s terms, company culture is the personality and DNA of a company. Each and every company is ultimately defined by their company culture. Think about Google for example. It’s pretty well documented that Google has a unique culture. You may even argue that much of its success is attributed to this culture. So, we pose the question, why is it important and how much does it actually effect a company’s success?

1. Happy Employees Make Your Company More Money

The Department of Economics at the University of Warwick found that happy workers are 12 percent more productive than the average worker, and unhappy workers are 10 percent less productive. In fact, unhappy employees cost American business over $300 Billion each year. So it literally pays to make sure your employees are happy.

2. A Healthy Company Culture Promotes Higher Productivity and Job Satisfaction

Employees who view a positive company culture are more invested in the company and demonstrate loyalty, which in turn, increases productivity. A Columbia University study shows that the likelihood of employee turnover at an organization with rich company culture is a 13.9 percent, whereas the probability of employee turnover in poor company cultures is 48.4 percent. Good company culture promotes higher employee productivity, longevity, creativity and happiness.

3. You Can Use Your Culture to Build Strong Relationships

Having a great culture based on a set of core values also allows you to build better relationships with your customers, suppliers, and partners. Unhappy employees who are disengaged at work, leads to negative attitudes and low productivity, which can have a very negative trickling effect on your customer and client relationships. A great company culture can in turn create a great asset: your employees. Satisfied employee’s equals satisfied customers, who then spend more on your products and services and provide free marketing through word of mouth.

 The conclusion: great company culture can make a huge difference in your organizations success. Your culture can be used to set you apart from the competitors. It allows you to create a differentiated brand, attract and retain loyal employees, and build strong relationships with your customers, suppliers, and partners. Beyond keeping employees happy and productive, it will help you pave the way to financial success and growth.

 Want to learn more about Link’s company culture? Check out this article on our recent accolade with the Houston Chronicle who named us to their 2015 Top Workplaces List!