The Importance of Culture to Business Success

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A smiling businessperson.

Successful businesses have learned the importance of culture in a company and how it can increase employee morale, encourage equitable workplaces, and boost profits. The COVID-19pandemic changed the way many companies throughout the world conducted business. Companies realized that they needed to invest in their employees and fully embrace the importance of culture in the workplace.

As more professionals continue to work remotely, businesses are working to create more equitable work environments that not only emphasize the importance of culture but take the necessary steps to implement strategies to define a sustainable culture and business. To develop positive work culture, businesses look for professionals with the right expertise and education.

What Is Work Culture?

Work culture is what makes each company unique. It reflects an organization’s “personality,” and can drive engagement, attract top talent, and affect organizational performance. Factors such as leadership style, workplace policies and practices, compensation and benefits, transparency and accountability, and work/life balance contribute to work culture.

Culture reflects not only those in positions of power but also drives employee engagement and satisfaction. Businesses retain and attract professionals when the company culture values their employees. A businesses’ culture also defines who it hires. For example, if a business needs a new creative director, it most likely will hire someone who can match its brand.

A clearly defined mission statement and emphasis on company values can develop equitable work culture. Business professionals who understand the importance of culture can help their organization develop and define its company culture.

Why Culture Is Important in Business

The companies with the strongest cultures tend to have much lower turnover rates. Less turnover equates to time and money saved. Gallup estimates that voluntary employee turnover costs U.S. businesses $1 trillion every year.

Company culture also contributes to employee happiness, and happy employees are more productive. A study of the Fortune 100 Best Companies to Work For found that businesses, where employees enjoy working experience, reduced turnover, higher customer satisfaction, and better financial performance.

Values and Innovation

Some business managers may wrongly assume that the key to creating a strong company culture is merely to offer more perks to employees. While such elements as free food and extra paid time off can certainly let employees know they are appreciated, more is necessary.

A company in Nebraska that repeatedly earned honors for being a good place to work makes sure its values permeate every aspect of its operations. The company, which provides rehabilitation services, keeps its primary mission — to improve lives — at the forefront of everything it does. This values-based method of operation serves to build a company culture that is attractive, positive, and productive.

Innovation is also key to creating a good corporate culture. For example, Google, which is famous for its unique culture, encourages employees to spend up to 20% of their time working on their own projects that may benefit the company. While this policy is often a topic for debate in the corporate world, it illustrates that appreciating employees’ innovative nature is another key to cultivating successful company culture.

Attitude Builds Culture

How can business leaders create company cultures that drive businesses toward success?

Culture is often more about attitudes than tangible perks and benefits. For example, most companies offer paid vacation days to their full-time employees. Vacations can lower employee stress and contribute to employee happiness.

However, during the COVID-19 pandemic, employees have both worked long hours and taken less time off. CNN reports that according to NordVPN Teams, which provides VPNs to businesses, remote work has led to a 2.5-hour average increase in the workday in the U.S. IPX20131, part of Fidelity National Financial, found that 37% of those surveyed had put their vacation plans on hold due to the pandemic.

Businesses should encourage employees to take time off to rest from the stressors of work. Some businesses have instituted policies of unlimited paid time off. Organizations of all types benefit from having employees who are refreshed and know they are valued.

A thriving, innovative corporate culture can contribute greatly to a business’s success. By promoting company values and designing policies around those values, business leaders can help their team members perform to their best abilities.

Explore the Importance of Culture in Business with an Advanced Degree

For busy professionals who are interested in expanding their business knowledge, an online advanced degree can provide the flexibility they desire.

Ohio University’s Online Master of Business Administration (MBA) degree program focuses on building customer relationships, quantitative skills necessary for sales professionals, and sales leadership. The program offers concentrations in accounting, business analytics, executive management, finance, health care, operations and supply chain management, strategic selling and sales leadership, and business venturing and entrepreneurship.

Learn more about how Ohio University’s Online MBA degree is designed to provide professionals with the education and experience to excel in the business field.

Recommended Readings

Having Trouble Writing Your Personal Statement? Follow These Simple Tips to Get Started.

How to Lead Effective Virtual Meetings: Resources for Managers and Business Leaders

Reasons to Get a Master of Business Administration

Sources:

CNN, Employees Working From Home Are Putting in Longer Hours than Before the Pandemic

Fortune, The Best Companies to Work For Are Beating the Market

Gallop, “The Fixable Problem Costs U.S. Businesses $1Trillion”

Indeed, “8 Reasons Why Organizational Culture is Important”

Forbes, “How Happy Employees Lead To Happy Customers, Companies And Shareholders”

Inc., “Google Says It Still Uses the ’20-Percent Rule,’ and You Should Totally Copy It”

IPX1031, How Americans Plan to Vacation During Covid-19