Building a strong culture is no small task. It takes time and resources to create a winning culture with a compelling vision, thriving environment and flourishing employees.
So, is the investment worth it?
We think so.
A strong company culture is not just about giving your team the warm fuzzies about showing up for work every day.
The positive effects of a winning culture can ripple throughout your entire organization – dramatically impacting your employees, customers and even your bottom line.
In a survey conducted by Deloitte, 91% of respondents say companies with a strong sense of purpose and culture also have strong financial performance.
The Effects of Strong Company Culture
A strong culture positively impacts your business in more ways than one. In addition to impacting your revenue, here are five key ways a winning company culture can affect your business.
1. Attract and keep top talent.
High staff turnover is not only expensive, but it lowers staff morale and can make the job harder for those who remain. Some studies show that it costs six to nine months salary on average every time a business replaces a salaried employee. While other studies have shown that it may be even more expensive than that.
No matter how passionate people are about their careers, if they are not immersed in a healthy, supportive culture they are more likely to burnout and leave their job.
Take teachers, for example. Many people go into education because they deeply care about teaching and the students, yet, between 40-50% of teachers quit within their first five years. People can care about their role, but if they are not in a healthy environment, the chance of them staying long-term is low.
Investing in culture can be the difference maker. For example, Hyatt Hotels boast high employee retention among an industry known for its high turnover rates. They attribute their success to employee development, empowering their employees to solve problems and promoting from within as their keys to high retention.
Companies that invest in creating healthy culture demonstrate they value their employees. In turn, those employees will be more likely to stay with the company for a longer period of time. Not to mention, a strong culture can make you a more attractive employer for top talent.
After all, don’t the best people want to work in a healthy, thriving environment?
2. Improved Productivity.
A strong, healthy culture cultivates a workplace where employees have higher job satisfaction, deeper employee engagement and ultimately, increased productivity.
Satisfied, engaged employees go above and beyond what is required of them because they are invested in the work they are doing. This benefits your business. In fact, companies with engaged employees outperform those without by 202%.
In other words, the secret to getting more work out of your team is NOT by giving them more tasks to complete. Instead, it’s about creating an environment that allows your employees to do their best work.
3. Employees become advocates.
Employees who love where they work will not hesitate to let others know.
That’s why companies with a strong and thriving culture don’t just have employees, they have amazing advocates for their brand.
But, employee advocacy isn’t just a great thing for recruitment. It can also have an impact on revenue generation. According to the National Business Research Institute, a 12% increase in brand advocacy generates a 2x increase in revenue growth.
Most employees are willing to be advocates for their company – if they have a good experience to talk about!
One of the best ways to determine if you have a strong company culture is to ask, “Are my employees telling others about where they work?”
4. You differentiate yourself in the marketplace.
Creating a strong, winning culture leads to better branding. After all, your culture should be the foundation for your messaging and marketing.
A positive, thriving company culture can become a key point of differentiation for your business, which can help you stand out amongst a crowded field of competitors. After all, customers and vendors notice happy and engaged employees.
Essentially, a strong culture can give you a competitive edge that will help you attract clients, partners and employees.
5. Healthy Team
We spend a third of our day at work, which is a significant amount of time. If all of those hours are filled with stress from work, it wreaks havoc on your team’s personal health. And that, can have a huge impact on your business.
High stress levels can lead to unhealthy and unhappy employees, which can cause increased healthcare costs and lost productivity for your business. In fact, a study shows workplace stress was responsible for up to $190 billion dollars in U.S. healthcare costs.
Alternatively, when you take the time to emphasize employee wellness as part of your overall culture, you prove that you care about the people who work for you and that they are more than just a cog in the machine.
Not to mention, a healthy culture reduces stress, chaos and burnout in your organization.
Remember, happy and healthy employees make for a happy and healthy business.
Why You Should Invest in Culture
A strong company culture is the foundation for a strong business.
After all, a business that creates a winning culture can attract better employees who stay longer, improve the health and happiness of your team and increase the number of happy and loyal customers.
We say that’s a win-win for everyone.