Do you wonder why your job isn’t rewarding?
Is going to work a source of frustration rather than accomplishment?
The problem may not be your job, but your company culture.
Company culture is one of the leading factors behind employee engagement and success.
If you have a conducive work environment, your performance improves and your work becomes more meaningful.
Top Company Culture Stats – Editor’s Pick
- 88% of job seekers state that a healthy company culture is crucial for success. [12]
- Forbes survey indicates that companies with positive cultures had 4 times higher revenue growth. [3]
- 60% of employees search for other jobs if their company culture fails to value their work-life balance. [11]
- Gallup poll suggests that organizations can increase their revenue by 33% if they create a culture that attracts star talent. [5]
- 94% of entrepreneurs agree that workplace culture is their key to success. [6]
How does Company Culture affect profits?
Company culture has a direct impact on employee productivity and labor costs.
Employees with conducive work cultures tend to have higher revenues per employee and lower absenteeism and turnover.
Higher management and executives now invest more in their company culture in order to reap these benefits.
- Organizations with better employee engagement have 18% higher revenues per employee. [8]
- Employee engagement leads to almost 59% less turnover and 10% higher customer ratings. [8]
- Positive company culture results in 21% greater profitability and 17% higher productivity. [8]
- Absenteeism is reduced by 41% if employees report being satisfied with their company culture. [8]
- 70% fewer safety incidents are recorded in companies with a healthy workplace culture. [8]
| KPI | Companies without Performance-Enhancing Cultures | Companies with Performance-Enhancing Cultures |
|---|---|---|
| Revenue Growth | 166% | 682% |
| Employment Growth | 36% | 282% |
| Stock Price Growth | 74% | 901% |
| Net Income Growth | 1% | 756% |
Do employees value Company Culture?
Employees report that they value intangible elements like recognition and growth opportunities for their careers.
Studies have shown that employees are more likely to stay at companies that value their effort and provide mentorship for their career paths.
- 84% of employees believe that motivation and engagement is the top factor behind a company’s success. [1]
- Toxic company cultures were reported to cause 20% of employees to quit their jobs in the US. [2]
- 40% of American workers claimed to dedicate more energy to their work if they received better recognition from their managers. [4]
- 82% of these workers report that their supervisors fail to recognize their contributions sufficiently. [4]
- 86% of job seekers will avoid your company if it has a bad reputation. [12]
- 15% of job seekers refuse a job offer if their employer has a poor company culture. [12]
- 94% of employees would stay longer if they felt that their company invests in their careers. [6]
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How to ensure a healthy Company Culture?
Leading experts have weighed in on this question and the ultimate answer is that a healthy company culture assigns value, respect and recognition to its employees.
Employees tend to prefer companies with supportive cultures instead of companies with only monetary benefits.
A supportive management provides flexibility to its workers, charts a clear career path for their growth and ensures open communication.
- Company cultures that value employee recognition are 49% more likely to keep employees motivated. [11]
- 50% of employees ranked regular and candid communications as their top priority in a healthy company culture. [11]
- Employees who do not feel supported in their goals are 3 times more likely to quit. [7]
- Having better managers can increase job satisfaction by up to 70%, according to a Gallup report. [5]
- A supportive management tends to improve revenue per employee by 27%. [8]
- Providing opportunities for promotion and growth is proven to increase employee engagement and motivation. [7]
- 56% of employees agree that they would upskill if their manager suggested a course to improve skills. [6]
- 90% of higher executives admit that Learning & Development directly benefits the company. [6]
FAQs
What are 3 benefits of a healthy company culture?
A healthy company culture improves employee satisfaction and reduces turnover. It also contributes to increased revenues and attracts the best talent in the industry. Overall, it is crucial to the long term growth of a company and its employees.
How can managers ensure a positive company culture?
Managers need to ensure that their workplace culture values employees’ efforts and invests in their professional and personal wellbeing. Most employees report that better recognition, improved work-life balance, and opportunities for growth and promotions are key to a positive culture.
How to identify toxic workplace cultures?
Toxic company cultures tend to dismiss employee needs and fail to recognize their potential. Cultures that create barriers to professional growth of employees and disregard their work-life balance are rated poorly. Employees that do not receive proper recognition and support look for other jobs and leave as soon as a better opportunity arrives.
Conclusion
Company culture is proven to be the deciding factor behind employee productivity, higher revenue and employee retention.
Investing in a healthy company culture is increasingly becoming the top priority of executives and board members.
Job seekers and employees prefer companies that are willing to support their career growth, learning and work-life balance.
Sources
- Deloitte. Core beliefs and culture. Chairman’s survey findings
- Altassain. How to build a company culture that sets you apart
- Forbes. Does corporate culture drive financial performance?
- Harvard Business Revenue. Recognizing Employees Is the Simplest Way to Improve Morale
- Gallup. The No. 1 Employee Benefit That No One’s Talking About
- LinkedIn. 2018 Workplace Learning Report. The Rise and Responsibility of Talent Development in the New Labor Market
- TinyPulse. Employee Retention Report
- Gallup. Culture Wins By Getting the Most Out of People
- Pwc. Organizational culture: It’s time to take action 2021 Global Culture Survey of 3,200 leaders and employees worldwide
- SHRM. Strengthening Workplace Culture: A Tool for Retaining and Empowering Employees Globally
- Forbes. Culture Is A Company’s Single Most Powerful Advantage. Here’s Why
- People Plus. Is Your Company Culture Attracting the Right Talent?
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Martin is the CEO and Co-founder of Jobera.com, a global remote career advice platform. As a Career and Job Search Expert, he is dedicated to helping job seekers worldwide develop skills, find career opportunities, and land jobs efficiently. Martin shares his expertise by guiding individuals toward professional success and fulfillment.