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Why is Company Work Culture So Important? Top 30 Reasons


Culture means the basic value in a person. What is man without a culture?

Similarly, company work culture is referred to the values, behaviour, attitudes followed and imbibed by everyone in the firm, from the CEO to the lower level employees  in business and in their day-to-day work routine.

The company work culture dictates the way the company meets issues and challenges and defines the manner by which it functions.  It is mainly the personality of the company.

why company culture importantWhy is Company Culture So Important?

The company work culture is important because it helps in business, in employee matters and overall, the work culture makes the working place and people happy.

1. Company work culture helps in forming company’s identity:

It is not sales’ figures or profits that define a company but its work culture.

The work culture is the DNA of the company and helps in creating a unique identity for the company, something that belongs only to the company.

2. Absence of work culture creates havoc:

If the company does not have a good work culture, it means there is an unhealthy practice going around.

It makes the employees selfish, does not encourage team work, thereby there is complete absence of team spirit, resulting in low productivity and lot of negativity, which will eventually affect the business and the future of the company.

3. A good work culture helps in employee retention:

A positive culture in the company means it values its employees and respects their contribution. This helps in creating a positive workplace for the employees where they feel acknowledged and valued and hence work happily.

It thus helps in employee retention and it not only earns the company loyal employees but also cuts down costs spent in recruiting new employees.

4. It helps build company’s reputation:

company reputation check A healthy work culture attracts talented employees to the organization. It spreads positive vibes about the company thereby raising its reputation.

It also helps in adding to the customer base of the company and thereby raising the finances, because customers like to buy products from reputed companies because of the faith that they follow fair practices in working and manufacturing.

5. Good work culture ensures high productivity:

A positive work culture enhances the morale of the employees, which makes them put their best at work.

This means they bring in high productivity which is helpful to better the financial health of the company, bringing in more profits.

6. It also helps in bettering the quality of products:

Healthy corporate culture motivates employees to ensure quality in their service and work. Workers feel ‘at home’ at work and that means they strive to ensure that the products meet high quality standards.

A good company cultures paves the way for high standards at work, which is met happily by the employees.

7. The company culture sets limits, rules, decisions and tone of the company:

The company culture gives a frame to company’s policies, decisions and rules, basically, it can be said that the culture gives a foundation to the company on which it builds its future.

8. Bad culture of the company leads to loss:

This is a fact corroborated by studies and statistics. A report published in US News some time ago attributes poor culture of the company as a reason for low profits of companies because workers are not happy with the company’s functioning and such employees add to the financial burden of the company.

9. A good company work culture rakes in financial benefits:

characteristics good company culture As stated above, a positive work culture means happy employees and more productivity, which helps in the finances.

Also happy employees are more sincere and they contribute to cost cutting in various spheres, which helps bring down even administrative costs.

10. It makes recruitment easier:

As a good work culture builds a great reputation for the company, the recruitment process becomes easier and more result oriented because now it is not difficult to get good employees as more people are willing to work with the company.

11. A positive work culture ensures efficient supply chain:

The supply chain becomes more efficient and responsive because there is better communication at all levels, and thus better internal cooperation, thanks to the work culture.

12. There is better customer service:

When there is a healthy work culture inside the office, it also percolates down to the customer level.

It means the employees and managers strive to give the best customer service and often employ positive methods to satisfy customers, because they know more satisfied customers mean more business to the company.

13. A good work culture helps in tackling employee progress:

employee career progression plan When there is an effective work culture, there are methods and regular programs to gauge the progress and feedback of the employees.

It helps in giving a hand to employees to develop their capabilities. This acts as a motivation tool.

14. It also helps employees react positively to change:

A well-developed and well-received work culture makes employees less stubborn to changes.

In fact, as there is more trust and openness, employees themselves initiate change, ushering in new ideas and improvements.

15. It encourages involvement:

A good work culture means everyone in the team is applauded and valued. That makes each employee wanting to be involved and contribute more.

16. A good work culture makes a leader out of everyone:

An encouraging and motivating work culture inspire people to take initiatives and makes them view their responsibilities and duties more clearly and instills in them leadership skills.

17. An encompassing work culture promotes better participation during meetings:

When there is openness and mutual trust, meetings become more productive as people come forward with frank opinions, suggestions and inputs which make meetings constructive.

18. It makes workers more cooperative:

Cooperation is the binding force of a team. A positive work culture increases mutual cooperation and helps in teamwork. That is also the contributing factor to make a workplace happy.

19. Each employee is motivated to take responsibility:

passion and motivation at work A good work culture takes each player into account. And when every member is visible, people do not shy from taking responsibilities and comes forward to solve problems. They are inspired to become a part of solution and not just issues.

20. A good work culture is equal to a safe workplace:

A work culture that encourages feedback, also allows people to air their opinions frankly on unsafe factors at work.

While they will not only share opinions on workplace safety, they will also take positive initiatives to make the workplace safer.

21. A safer workplace means less injuries and low insurance rates:

A safer workplace ensures that injuries and claims are lesser, which in turn means low insurance rates.

Injuries mean losing out on precious work time and endangering the lives of valuable workforce. A safer workplace prevents these factors.

22. There is less absenteeism:

It is estimated that most people take leave from work due to stress or unhappy work situations.

A good work culture ensures that the employees are happy and that the workplace reflects positivity, which means employees want to work and not stay away from it.

23. There is less stress not just for employees but also the employers:

A positive work place means positive employees and more productivity which in turn works in favour of employers too. As a result, work related stress can be an obscure term.

24. A healthy work culture ushers in friendly union-management relationship:

employee friendly work environment A work culture is good when it paves way for less adversity and more cooperation among all players. That reduces employee grievances which mean lesser work for unions, a trait that encourages a friendly relation between the management and unions.

25. A great work culture ensures smooth operations:

Better operating system is no longer related to modern technology but to an efficient workforce.

It is all about people who can work as a team, be efficient and act with speed and precision and that are what a good work culture facilitates.

26. Healthy work culture works as a unifying force:

There are all kinds of people in an office, with different attitudes, different temperaments and outlook and also from different cultural backgrounds.

A healthy work culture brings all of them on a common platform and they stick together as one because they know that their interests are protected.

27. Employees feel connected and one with the vision and objectives of the company:

When they work with a clearer sense and more responsibly, the employees know what is best for their company and hence they develop a closer bond with the company.

The result is that they work hard to achieve its objectives as  they understand the vision of the company better.

28. A good work culture helps the company develop an insight:

A good work culture enables the company to check how they are developing their business and helps them to ensure that their vision and means are in sync with the values that they believe in.

29. The statistics enforce the fact that work culture is important:

company culture statistics Some of the studies and researches have proved that a good work culture helps the company in multiple ways.

A recent study undertaken by the Columbia University found that the job turnover of a company with good culture is only 13.9% as opposed to the 48.4% that a bad work culture finds.

The University of Warwick undertook a study that showed that happy employees are more productive and that unsatisfied employees cost the USA around $300 billion a year.

30. A look at companies known for best work culture:

Look at some of the names such as Google, Hub Spot, Brand & Mortar, DreamWorks Animation, Apple and Zappos and what do you find?

Of course, they are one of the most prolific businesses of today but the other factor that is in common is their great work culture.

For these companies, a good work culture is not a one-time phenomenon but something that they are constantly working on.

They list happiness barometer of their workforce as one of their priorities which also ensures that their turnover too tops the list every year.

To Wrap Up:

These 30 reasons just say that better the work culture of a company, better is their profit margin. It is thus important to lay down constructive culture for the company to abide by and follow and it should take employee interest as one of the paramount features.

The time, effort and money that you invest in developing and maintaining a good company culture ensures that the returns are much more than what you have invested.