The ROI of good Company Culture: Driving 21% Higher Profits


The makeup of company culture isn’t just a bunch of shared values, beliefs, and practices; it is an all-encompassing outlook that is shaped by critical social and psychological elements. It includes everything from how the employees interact with each other to how decisions are made in the company. 

Organizational culture is influenced by numerous factors, such as its history, leadership style, industry norms, employee demographics, and much more. Maintaining a healthy corporate culture requires taking proactive steps to shape strategies that align with company values, prioritize employees, and enhance collaboration.

Why is company culture important?

Defines your organizational identity 

Your company culture is a direct reflection of the way you do business. It is the baseline of your operations and outlines how you want your employees to participate in your organization. The way you engage with your employees determines how they will communicate with others outside of your company, such as customers, partners, or other individuals involved in your business.

Outlines your company’s values 

All organizations have values they strive to uphold, but only a select few are successful in establishing a robust company culture that aligns with these values. For instance, if your company values innovation but operates within a strict hierarchical structure, it will be challenging to put those values into practice. To foster innovation, you’ll need to adopt a more flexible organizational structure that encourages employees to think creatively and take calculated risks.  

Transforms employees into advocates or critics

Having a strong company culture is crucial for gaining employee support. When employees feel comfortable with the way the company operates, they become its best advocates. On the other hand, if they are confused or overwhelmed, they can become the company’s worst critics.

The experience that employees have while working with a company will directly impact their own work. Positive experiences can inspire them to go above and beyond to help the company grow. However, negative experiences can cause them to lose morale and motivation, hindering their ability to contribute to organizational success.

Allows you to retain more employees 

It’s a common saying that “employees are the backbone of every organization”, but despite this, some organizations struggle to keep their highest-performing employees. The reason for this is that they fail to provide a positive employee experience. To offer the best possible employee experience, it’s crucial for organizations to concentrate on the four facets of employee retention.

  • Well-being 
  • Company culture 
  • Learning and development 
  • Recognition 

Directly impacts employee performance and well-being

Forbes reports that numerous studies have shown a direct correlation between company culture and employee performance and well-being. This is not surprising – when employees are given opportunities to grow, innovate, and express their ideas freely, they are motivated and perform better. Conversely, if employees are bogged down in bureaucratic tasks all day, they become stressed and unproductive.

Now that we understand the importance of a healthy and well-defined company culture, let’s explore the various types of cultures that exist in today’s corporate world. Understanding the general characteristics of these cultures can help you assess your own company’s culture and determine whether it aligns with your vision for the company.

Types of company culture 

  • Clan culture is all about collaboration and working together as a team. The business leaders in this type of company culture are highly enthusiastic and readily offers guidance to their employees; they are more of a mentor than managers. This results in happy employees, while also reducing employee churn. 
  • Adhocracy culture is everything innovative and agile. In such a company culture, employees are pushed to go beyond and pursue their ideas, given complete control of their job roles, and made more accountable for their actions. This type of culture is suitable for fast-paced organizations that support innovation and risk-takers. 
  • Market culture is strictly specific to bottom lines and achieving targets. This type of culture is hyper-competitive and works mainly on a “do or die” motto. In this type of company culture, employees are rewarded based on their performance; however, this culture also contributes to increased stress. 
  • Hierarchy culture is the most traditional approach wherein the organizational structure binds the operations. In this type of company culture, the chain of command flows from top to bottom, and the overall structure is more rigid than others. The employees are mainly required only to perform their duties outlined by their managers, and growth is somewhat restricted. 

Tips to improve your company culture 

Build strong employee relationships

The foundation of building meaningful relationships with your employees starts with acknowledging them. Employees look up to the leaders of an organization; they want to follow in their footsteps and feel motivated when leaders appreciate their work. You can conduct employee experience surveys to ensure you have engaged employees and that their motivation levels are high. 

Connect people to a purpose or your vision

Encouraging your employees to set goals and strategies that align with your organizational vision can help them understand the impact their work has on the business. By doing so, you can empower them and foster a sense of connection to the organization’s vision. Additionally, supporting their personal development like offering training and development opportunities can further enhance their motivation and lead to high engagement. Therefore, it is essential to prioritize these aspects to promote a positive and productive work environment.

Build an employee-first management culture

Employees strive for recognition but are also concerned about their managers or organizations caring about their experience and development. Building an employee-first culture will give them that sense of security and establish that the organization values its employees. 

Encourage employee recognition programs 

Setting up an employee recognition program can significantly improve employee engagement and boost the participation of employees in organizational activities. We recommend building an annual recognition program, so your employees have a little extra incentive to work towards their goals. 

Create a positive employee experience 

Employee experience is a significant aspect of your company culture. It includes every aspect of your operations and how your employees respond to them. Facilitating positive employee experience can be a game changer for your organization. 

Enable free-flowing channels of communication

Communication has always been a tricky-to-master part of company culture. If you bombard employees with too much information, they get overwhelmed and demotivated. On the other hand, if they don’t have proper access to information, they will be unable to operate efficiently. This is why you need defined communication channels that offer access to an on-demand repository of information to your employees. Communicating effectively is the key to a successful employee experience strategy. 

Set up a feedback structure 

The importance of actionable feedback cannot be overstated. However, it is important to note that it is a two-way street. An employee must be given feedback on his performance. At the same time, managers must also take feedback from their teams to ensure they are comfortable and have everything they need to perform their duties effectively. 

Are you interested in improving your company culture, streamlining operations, and providing the best employee experience? Well, we have great news! Auzmor Office is a comprehensive solution that can do just that, and we’re currently offering a free trial. Our expert employee experience platform comes with a variety of unique features including social intranet, people hub, channels, analytics, and more. With Auzmor Office, you can improve employee engagement, productivity, and collaboration all in one place. Contact our team today to start your free trial!

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