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5 Reasons Why Company Culture Can Make or Break Your Business
August 08, 2018
Company-Culture

5 Reasons Why Company Culture Can Make or Break Your Business

With the rise of millennials entering the workforce, company culture is more important than ever before. In fact, Forbes called 2018 the “Year of Employee Experience,” citing that there’s a skills shortage, and employees are choosing where to work based on how they’ll be treated. Plus, the popularity of crowdsourced reviews on sites like Glassdoor allows candidates to have access to the opinions of past and present employees.

Since it’s evident that company culture is crucial to job candidates, you should make it a priority as you run your company. In this post, we’ll list five reasons why company culture can make or break your business.

How Company Culture Affects Your Small Business:

1. Great Culture Attracts Millennials

According to Pew Research, millennials are the largest generation in the workforce, as 56 million people ages 21 to 36 are working or looking for employment opportunities. Millennials are driving the future of workplace behavior, and when looking for a job, desire an exceptional company culture above anything else. If your company offers benefits like Summer Fridays, student loan assistance, management training programs, and a good work-life balance you could have a leg up on the competition.

More and more companies are making workplace culture a priority. In fact, Airbnb even created a position for a Chief Employee Experience Officer who creates a “workplace as experience.” Even if your company isn’t large enough to recruit for that type of position, you can still empower your HR team to create an engaging workplace for your employees.

2. Leads to Improved Customer Service

Employees will likely provide better customer service when they’re in an enjoyable work environment. In fact, the key to customer satisfaction could be focusing on your employee’s happiness first.

Gallup’s State of the American Workplace says the if employees are more engaged, they treat customers better, leading to a 20 percent increase in sales. Therefore, if you’re trying to increase sales and ensure customer loyalty, you should consider how you can motivate your employees.

3. Contributes to Employee Morale

Let’s face it— no one wants to work in an environment where the employees are miserable. When people enjoy coming to work every day, they’re more likely to succeed in their roles. While you can’t control an employee’s attitude, you can foster an atmosphere that’s enjoyable to work in. The best way to do this is a top-down approach. Start by training your executive team and managers on creating positive interactions, and let it trickle down. Then, have your HR team to conduct an employee survey asking for feedback. This will help you determine what you’re doing well, and how you can improve your company culture moving forward.

4. Reflects Your Brand Identity

Shoe company Zappos is known for having a great company culture; they allow pets at the workplace, have a relaxed dress code, and provide team-building activities. In comparison, because of Glassdoor ratings, consumers know the worst companies to work for and that likely affects how they feel about the brand. Your employees should be your biggest advocates and cheerleaders. If they don’t love your brand, how will they convince potential customers to love it?

5. Increases Employee Loyalty

According to Monster.com, employee loyalty results in positive financial outcomes for companies, and determines the business’s long-term success. Loyal employees stay at a company longer, which saves you money because it can be very expensive to replace an employee. The Society of Human Resource Management even predicts it costs six to nine month’s salary to train and replace an employee. To improve employee retention, create an environment where employees love to come to work and are engaged. Engaged employees will feel an emotional connection to your company and genuinely care about its success. They’ll want to contribute, so show them they’re valued by listening to their ideas and providing opportunities for advancement.

Conclusion

By not focusing on company culture, you could be missing out on great candidates who aren’t applying to your jobs because they think it’s a toxic work environment. Although your sales strategies, financial management skills, and other relevant tasks matter when running a business, don’t forget to put emphasis on company culture. You might be surprised at how much more successful and enjoyable your day-to-day will become!

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].
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