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You’ve probably heard the term “corporate culture” at some point. You’ve probably even used the term at some point yourself.

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Workplace culture is something that’s often discussed. And savvy human resources managers know corporate culture matters to your organization. Here’s why.

What Is Corporate Culture?

Corporate culture derives from your mission statement, your brand values, and your company ethics. It’s reflected in every action you and your employees take. 

The nature of corporate culture can massively impact an organization’s reputation. And because of this, many businesses are taking steps to renew their values and shift their focus to create better, more positive workplace cultures.

It Affects Your Workplace

HR departments focus a lot on culture because its effects are primarily felt in the workplace. Employees are more motivated and engaged when their values align with those of the company they work for. 

Corporate culture also affects the feel of the workplace. Most employers and employees want the workplace to be a positive place. It should be somewhere employees enjoy being. In fact, a survey by Randstad found that 58% of employees have left jobs, or contemplated leaving them, because of negative office politics.

On top of this, a whopping 86% of employees stated they wouldn’t even consider applying for or continuing to work at a company with a bad reputation.

A positive culture in the workplace fosters better interpersonal relationships among employees, recognizes talent, and makes the office a better place to be.

It Reduces Turnover

An unhealthy corporate culture is often the reason why good employees seek other employment opportunities. Employees who feel underappreciated, disengaged, and dissatisfied simply won’t stick around.

Most hiring managers look for cultural fit since it reduces the chance newly hired employees will leave shortly after. Someone whose values aligns with those of the company will likely stay on longer. They might be more engaged and even more productive.

Even your long-term employees may eventually fall out of step with the corporate culture. Working toward a dynamic and positive culture can help you retain employees over the short term and the longer term, reducing turnover.

It Influences Customer Satisfaction

Whether you’re selling direct to a consumer or to another business, you and your employees no doubt have some interactions with your customers.

How does corporate culture influence customer satisfaction? Keep in mind your values and your ethics are embedded in your culture. Those values and ethics guide how you interact with everyone around you, including vendors and clients.

Corporate culture also influences your employees’ attitudes. A positive culture motivates employees and engages them in their work.

The more motivated and engaged your employees are, the more likely it is they’ll have positive interactions with your customers. They’ll be willing to go the extra mile and deliver fantastic customer service or to look for innovative new solutions for a loyal customer.

It Affects Your Reputation

If you’re consistently delivering great customer service, and your employees are always pleasant to interact with, your customers will recommend you. If you uphold your values and ethics in the public arena, even those who don’t do business with you will have a more positive opinion of your company and what you do.

If your corporate culture emphasizes being environmentally friendly, for example, think about actions that can demonstrate this value. Maybe your company contributes to a wildlife preservation fund or you encourage your employees to go on tree-planting excursions. Your visible actions show the world what’s important to you and what your organization stands for. 

As you can see, corporate culture is important. It has far-reaching implications for any organization. Now’s the time to consider your own organizational culture and begin working toward an even brighter future.

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Lisa Curic

Lisa brings almost 30 years of experience to her role as the executive vice president at GroupQuest Benefits Resources Inc. She has worked for several different insurance businesses and co-founded a group benefits MGA in 2006. Lisa’s dedication and hard work has played a significant role in growing GroupQuest from two to over 40 employees in less than 10 years, and in making it one of the largest group benefit MGAs in Canada. Outside of her busy work schedule, Lisa enjoys reading, travelling, working out, cooking, and spending time with her husband and two children.

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