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Company culture has become a buzzword in HR circles, but is it really that important?

As it turns out, there’s merit to focusing on the culture that develops within organizations. Organizations that develop positive cultures tend to perform better than their competition with more negative cultures. Why? There are a few good reasons.

Company Culture Attracts and Retains Employees

You work hard to find the right people for your team. You carefully read resumes, interview applicants, and finally hire someone.

They have all the skills and talent, yet their performance isn’t landing. In a few months, they decide to leave the organization. What happened?

This person was probably a poor fit for your company culture. Talented employees won’t remain in an environment they’re not happy in. If they dread coming to work, you may not be getting their best, and it’s likely they’ll choose to leave.

By contrast, a workplace culture that helps people stay motivated and feel appreciated is a key factor in employee retention, productivity, and job satisfaction. When someone feels supported and valued, they want to give you 110 percent. They show up to the office excited to get to work. In turn, they’re less likely to look elsewhere for a job that’s fulfilling their needs—they have one right here.

Culture Determines Employee Wellness

Wellness is a key factor in employee productivity. Someone who is sick will be more likely to take time off. Someone worrying about their finances may not be productive with their to-do list.

Company culture plays a big role in helping your employees stay healthy. You can encourage them to take breaks, or you can encourage them to pull long hours, “chaining them to their desks.”

If you encourage a positive company culture, then your team members should also feel more supported mentally and emotionally. If, by contrast, they’re poor fits for your culture, they may feel constantly stressed or unhappy. That can take a toll on their mental health, which can ultimately lead to more illnesses or the decision to leave.

How Does Company Culture Affect Growth?

You can see how important a positive company culture is for supporting your employees. Why does that matter for driving growth in your organization?

Employees are a key differentiator for most organizations today. It’s hard to differentiate products or even marketing. Employees can make all the difference to your customers, in terms of the service they deliver.

The right organizational culture could also mean keeping the right people on board, as well as hiring the most talented. Positive workplace culture can keep employees motivated and satisfied. They’re more willing to roll up their sleeves, and they bring their best ideas with them. With their minds free from worry, they can focus on creative solutions or develop new products. They feel appreciated and supported, and they bring that energy to their desks.

What Does Positive Company Culture Look Like?

A “positive” workplace culture doesn’t mean everyone is all smiles all the time. Instead, it focuses on the human side of your team. Positive culture understands that people need both support and challenge to grow. To get the best out of your team, you have to invest in them.

Some positive company cultures are highly competitive, because that challenges employees and keeps them motivated. Of course, that kind of culture speaks to a certain kind of person. Some people will thrive in this environment, while others won’t.

So, a positive culture doesn’t mean there are no challenges or competition. It means that employees can feel confident they have the supports they need to thrive in the environment, both as professionals and as people.

How Can You Build Company Culture?

Positive organizational culture is built from the ground up and the top down. Your executives need to believe in the culture, and they need to embody it.

Wondering what your company culture looks like? The right technology could help you get the insights you’re looking for and so much more. Discover what your data says about your company and where you could grow in the future.


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Kaneez Jaffer

Kaneez is a Certified Human Resources Leader (CHRL) with an advanced knowledge of human resources and organizational structure and design. She has extensive experience with HRIS systems and understands the need to move HR from a transactional model to a transformational one. She has worked in the investment banking, insurance, and legal industries, as well as with large not-for-profit centres helping to simplify and streamline their internal systems. Kaneez is an expert in building relationships and affecting change in a positive and productive way. She acts as the key HR business partner at Apri Insurance Services Inc, managing the implementation of JungoHR, while providing expert advice and counsel on a range of HR matters. Kaneez holds a Graduate Certificate in Human Resources Management as well as a Certificate in HR Law for HR Professionals from Osgoode Hall Law School in Toronto, Canada.

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