Table of Contents
Table of Contents
Company culture encompasses a company’s mission, vision, and values, as well as its day-to-day practices and policies. Important contributing elements are working environment, managerial styles, professional development, employee recognition, and team and employee characteristics and behavior.
A poor company culture can result in low productivity and high staff turnover, whereas a positive and strong company culture with high levels of employee engagement can increase productivity and profits. A healthy company culture can also attract and retain talented employees.
Read on to discover the evidence that supports developing a strong company culture.
Having a healthy culture sets you up for business success
A better culture leads to more engaged workers
Not investing in culture will cost you talent
Leaders play an important role in building culture
The organization’s mission, vision, and values help shape its culture
Employees want to give and receive feedback
People value flexibility, work-life balance, and remote work opportunities
It’s important to recognize your employees
Companies with the best culture offer career development opportunities
Having a healthy culture sets you up for business success
In a company culture where employees are interested and engaged, they are also motivated and productive. In that setting, an entire organization can be striving towards the same goals. The result is a more successful business and increased revenue and profits.
A great company culture attracts the best talent. It’s what brings in the capable employees, creators and managers who drive the organization’s success.
70% of employees and leaders say culture is more important to business success than strategy and operations
69% of leaders credit success during the Covid-19 pandemic to company culture
Companies with happy employees outperform competition by 20%
Companies with satisfied employees deliver long-run stock returns 2.1% or more above industry averages
Companies with high engagement report a 19% increase in operating income
Companies with high engagement report 28% growth of earnings per share
Companies with low levels of employee engagement see operating income decline by 33%
Disengaged employees produce 28% less revenue
21% of employees say their organization is not committed to improving culture
A culture that attracts high talent can lead to 33% higher revenue
A better culture leads to more engaged workers
Organizational culture can be improved through solid leadership, clear purpose and values, and good communication. A culture that is empowering—where employees have a voice, a valued role, and development and growth opportunities—will result in engaged workers.
Well-motivated workers that believe in a company’s purpose and values will strive harder to do well in their own role and for the company goals.
50% of executives say corporate culture influences productivity, creativity, company value and growth
Happy employees work harder – they are 12% more productive
63% of employees are not engaged at work
29% of workers will call in sick if they don’t feel like going to work in a toxic workplace
Unhappy workers are 10% less productive
There’s a 48.4% chance of job turnover where company culture is low
A highly engaged organization can see 18% higher revenue per employee
Not investing in culture will cost you talent
The best way to retain employees and attract the best new talent? Create a great working environment where there are clear individual and corporate goals and defined paths for recognition, feedback, and development.
In fact, statistics suggest that company culture can be more important than salary for many employees.
92% of employees say culture impacts their decision to stay working with an employer
77% of job seekers would consider company culture before applying for a job
90% of workers who rate their company culture as poor have considered quitting
86% of potential employees will not apply or continue to work for a company with a bad reputation
58% of employees will leave or consider leaving if a company culture is negatively influenced by office politics
The chance of job turnover at an organization with good company culture is only 13.9%
56% of employees say company culture is more important than salary
Leaders play an important role in building culture
Effective and motivating leaders play an important role in driving successful company culture. They are the creators of (or are closest to) the vision and values of an organization, and the way they pass these characteristics to employees is important.
Research shows that managers can be more connected to company culture and are most influential in changing company culture, for better or for worse.
91% of employees who rate their workplace culture as good say they can “trust,” their immediate supervisor
Managers dictate 70% of any change in employee engagement
Nine in ten workers say their manager contributes to setting their work team environment
77% of senior management feel connected to a company’s purpose, vs. 54% of other employees
Only 1% of companies have four important elements for company culture: talented managers, talented contributors, high engagement and a strengths-based culture
20% of employees say they can’t trust what their supervisor tells them
Only 15% of non-executive workers say they are living their purpose at work
The organization’s mission, vision, and values help shape its culture
A company’s mission defines its core business, and the vision outlines its aspirations for the future. Company values, aligning with mission and vision, define the way managers and employees behave and the way business is done.
Values can be generic but also very specific, with flexible working practices and sustainable policies as examples. Values can include attributes like operating with honesty and encouraging diversity, and they help set the tone for the working environment.
73% of job seekers won’t apply to work at a company unless its values aligns with their own personal values
89% of employees believe an employer must have a clear mission and purpose
Strengths-based company cultures see 8% higher revenue than average
94% of workers say empathy is an essential quality of a healthy workplace
70% of HR leaders know what level of company culture is required for success, but only 30% felt their company was achieving this level
Only 46% of employees have “trust,” in their employers
Only 23% of employees say they can apply their organization’s values to their work every day, and only 27% believe in their organization’s values
Employees want to give and receive feedback
Fostering an open culture with multi-directional lines of communication helps give everyone a voice. It can connect employees and involve them deeply in a company’s goals.
Such an open culture can begin with a simple two-way feedback process, and it’s shown that employees value having a voice and receiving feedback themselves.
82% of workers say they are comfortable voicing their opinions with managers
Only one in three workers receive feedback in a seven-day period
58% of employees say they wish employers would conduct more employee engagement surveys
23% of employees are unsatisfied with the frequency of feedback from their manager
80% of employees say they don’t receive good feedback
Only 41% of employees feel comfortable sharing concerns with their managers
People value flexibility, work-life balance, and remote work opportunities
Company culture can be designed in a way that fosters a working environment attractive to employees. The benefits will entice new talent, build a strong company reputation, and ensure that employees remain.
Elements of company culture can include flexible or remote working practices, four-day work weeks, additional vacation days, and events for employees and teams, which all contribute to a motivating and engaging place to work.
76% of newly remote and hybrid employees say they have a positive perception of their “workplace”
Workers are 2.6 times more likely to report being happy and 2.1 times more likely to recommend a company when they can choose their location and work schedule
64% of hybrid and 66% of remote employees say that their organization’s culture has a positive impact on their job
75% of employees want to spend more time on their personal lives
Only 32% of workers who rate their company culture as good have considered quitting
Six in ten workers looking for a new job say company culture makes it difficult to balance work and home commitments
It’s important to recognize your employees
Recognition is a critical part of company culture and professional development and can be just as important as salary and benefits.
Employees who know they are doing a good job and contributing to the success of a company will stay. Workers who don’t feel valued or don’t feel that they are performing well are much more likely to leave.
Companies that score in the top 20% for a “recognition-rich culture,” have 31% lower voluntary turnover
When an employee feels cared about at work they are 3.2 times more likely to be happy and 3.7 times more likely to recommend their employer
69% of employees say they would work harder if their efforts were recognized
57% of employees say recognition would reduce the chance of them taking a call from a head-hunter
Only 13% of employees feel recognized
Only 41% of employees have received training on recognition best practices
46% of employers lack a benefits, recognition and rewards strategy
Companies with the best culture offer career development opportunities
No matter the size of an organization, there are ways to offer career development. For some companies, career development could simply be in the form of opportunities to develop skills or to learn new ones. A company culture that prioritizes career progression, or even personal development, will engage its employees and attract new ones.
Employees can stagnate within a business if their aspirations aren’t encouraged or they lose interest in their role.
76% of millennials say professional development opportunities are one of the most important elements of company culture
Only four in ten employees say they have opportunities to learn and grow at work
58% of employees may leave without professional development or education and learning opportunities
Only 25% of employees are confident about their career at their current employer
Just 50% of employees say their manager tailors their feedback based on the job they want to progress to
Crafting a Winning Company Culture
You’ve seen the numbers. Now, let’s take a look at the things you can do to implement the findings from this article.
- Build a solid foundation for your company culture. The stats are clear: mission, vision, and values set the groundwork for your culture. If you haven’t yet defined them, get started now. If you already have, decide how you’ll utilize the mission, vision, and values to shape your culture purposefully.
- Invest in your people. People don’t passively soak up the culture you create—they play a big part in determining what the culture will be. This article shows just how critical it is that you hire and train great leadership, provide development opportunities to every employee, and create an environment where engagement thrives.
- Let work-life balance lead the way. The way that employees view culture has changed and will continue to change rapidly. It’s not only about what happens at work anymore; it’s about what happens outside of work. To hire and retain the best talent, foster a culture where work-life balance matters, flexibility is a given, and employees’ mental health comes first.
Take care of your people and protect your business with Eddy
Track essential employee data, digitize your manual HR processes, and improve your employee experience with Eddy.
Eddy is the all-in-one HR tool built with you in mind. The robust features and ease of use will benefit your company both inside and outside your HR team.
