Why is company culture important?Ĭompany culture is important because it directly affects company performance on key metrics including finances, employee retention, innovation and customer service.Īccording to research by Great Place to Work and FTSE Russell, annual returns for the 100 Best Companies have had a cumulative return of 1,709% since 1998, as compared to a 526% return for the Russell 3000 Index during the same period. Employees celebrate their work and each otherĮvery company does each of these things, but as in most things, it ’s not what you do, it ’s how you do it.Of all the ingredients that make up your organizational culture, the most important variables are how: Where does organizational culture come from? You ’ll hear some people describe a company culture with statements like “ people are willing to talk to each other, share what they know and take the proactive step to get you in touch with the right person,” or “ people always come first”.Ĭool perks like unlimited vacation time and innovative policies may help shape company culture, but they do not make a great workplace. This could be through an employee experience survey platform like Emprising™. The best way to understand a company ’s culture is to ask employees.
My first experiences as a guest gave me a taste of how they “ do things around here.” How to identify your company culture There was a distinct, positive energy in the building. The employee behind the desk greeted me warmly, offering me a cup of coffee and a comfortable seat. As I approached the door, employees who were walking in and passing by made eye contact and said “ hello.” I can recall the first time I walked into the lobby of a company on our Fortune 100 Best Companies to Work For ® list. Your systems and behaviors give employees the “ rules of the road” for interacting with the business, and each other.Ĭompany culture is often something you can feel, even as an outsider.
“How” includes both the formal systems, and the informal behaviors.įor example, your company may use instant messaging software to communicate throughout the day (system), and it may also be okay to yell at a coworker to get your point across (behavior). It’s the sum of your formal and informal systems and behaviors and values, all of which create an experience for your employees and customers.Īt its core, company culture is how things get done around the workplace. What is company culture? Company culture is how you do what you do in the workplace. But after studying great workplaces for over 30 years and listening to how employees describe their workplace experience, Great Place to Work® has decoded the psychology behind company culture. Ask 10 people to define “ company culture” and you ’ll get 15 different answers.