• Team Management

Organisational Culture: Why it Pays to Get it Right

Over recent years, companies have realised the importance of having a positive and thriving organisational culture. Organisations often have a separation between their existing culture and a desired culture. Bridging the gap between these can result in huge positives for the company. 

A healthy organisational culture should be a priority for leaders looking to foster a supportive and engaging work environment. However, despite the initial steps needed to be taken by leaders, organisational structure is the responsibility of everyone in the organisation to uphold.

Here we’ll examine how important organisational culture is in business alongside the benefits of a positive organisational culture.

What is meant by ‘Organisational Culture?’

Organisational culture is the personality of the organisation, encompassing how things are done, how decisions are made within the governance structures, and how people interact within the organisation. It is a set of beliefs, values and structures that all employees follow. 

Organisational culture is not necessarily mentioned within the workplace every day. Nevertheless, it’s always in the background, influencing every decision that’s made, and seen within the organisation’s output. Organisational culture can also influence the perception of a brand from the outside. 

Learn more about organisational governance here – Project Governance: The Complete Guide

The Importance of a Positive Organisational Culture

Here are some of the benefits of having a strong company culture ingrained within your business.

Reduces Employee Turnover

Employees are an organisation’s most essential assets, and retaining top talent should be a priority for every organisation. A positive and inclusive culture enhances loyalty and satisfaction among employees, helping to reduce turnover rates. 

Employees are more likely to stay with a company where they feel valued and connected to their colleagues and the organisation’s mission. Happy and appreciated employees are less likely to look for other jobs, and won’t want to risk leaving a positive workplace.

Attracts Talented Potential Employees

According to a survey by GlassDoor, most workers examine a company’s culture and consider this as a major factor when deciding where to work. The reputation of a strong company culture is likely to spread through the industry, which can encourage top professionals to want to join your organisation. 

Millennials and Generation Z are now prioritising a strong company culture over their salary, showing that the importance of organisational culture is only going to increase in the future.

Improves Teamwork and Collaboration

A strong culture encourages teamwork and collaboration. When individuals share common values and goals, they are more likely to work together effectively, communicate more frequently and openly, and support each other in reaching their shared objectives.

Learn more about creating a collaborative culture here – Fostering a Culture of Collaboration Among Employees

Higher Customer Satisfaction

Employees who are satisfied with their workplace are more likely to provide exemplary customer service. A positive company culture that values customer satisfaction can result in increased customer loyalty and positive word-of-mouth recommendations. This then translates into success for the business, and better opportunities opening up for all employees. 

How to Support a Strong Organisational Culture

Creating a positive organisational culture can take a long time, but here are some steps you can take to help you put your company on the right track.

Define and Communicate Core Values

It’s difficult for employees to promote a positive culture if they don’t know the core values of the organisation. Clearly define the organisation’s core values and ensure they are communicated frequently. 

For example, core values should be communicated as part of a new starter’s onboarding process. This helps employees understand what the organisation stands for and how everyone involved should reflect them.

Core values are to be followed by everyone within the organisation, with leaders setting the right example. If employees further down the hierarchy see people above them not practising the core values, they will not feel a need to follow them either.

Reward Your Employees

As previously mentioned, employees need to feel appreciated, giving them the motivation to work hard and reach the company’s objectives. When your workers reach these targets, it’s a good idea to recognise this through giving out rewards. Examples of rewards could be a gift voucher, an additional half day/full day of annual leave, or taking the team out for a meal covered by the company.

A great way to reward your team which can lead to extra benefits is by organising an activity/team bonding experience. By doing this, your team get to have fun, whilst also learning more about each other, and how they can work more effectively as a team.

Understand motivation through empowerment with this Guide to Employee Empowerment.

Employee Feedback

Asking employees for their feedback on all aspects of the workplace is a great way to learn and understand how they’re currently feeling about their job. Encouraging employees to give feedback makes them feel like their opinion is valued.

Where possible, employee feedback should be anonymous, as this will make members feel like they can be as honest as they want. Ask direct questions to get the answers that will help spur the positive change you are aiming for.

A way to make feedback become the norm within the company is by sending out surveys asking employees their opinions on the current company culture, or the company’s core values. 

You then must value your employees’ feedback, and by making relevant changes from their recommendations, your employees will feel like their opinions matter.

Invest in Employee Well-being

In recent years, it has become fundamental for companies to prioritise their employees’ well-being. Employees who feel they are supported by their company, are far more likely to be more productive in the workplace.

Organisations can implement a variety of initiatives to show they care about the well-being of their employees. This includes providing access to healthcare benefits, offering mental health resources and support services, and promoting work-life balance through flexible working hours and remote work options. 

Organisations can also give employees opportunities for professional development and career growth, to show that they care about their employee’s development, and not just the company’s. 

Fostering a supportive and inclusive work environment where employees feel comfortable discussing their well-being is essential for creating a culture that values and prioritises employee health and happiness.

Hire the Right People – Not just the Best Talent

As previously specified, having a strong organisational culture can lead to top candidates applying for vacant positions at your company. Bringing new people into the organisation can shake up the culture, having potentially positive or negative effects.

This is why it is essential when interviewing candidates to make sure they are the right fit for your company’s culture. The most skilled candidate might not necessarily align with the core values and culture you have in place, and this might rub off on your current employees.

You must balance both the skill set and personality of the candidates to choose the right person who will be able to perform to a high standard, whilst also slotting into the organisational culture.

Develop your Organisational Culture with Verto

To foster the right kind of culture for your organisation, you need the tools to build the foundations. With Verto, you can lay the base for a positive organisational culture and empower your employees to become ambassadors for the culture. With Verto, you can:

Verto offers a range of tools for managing workloads in a collaborative way. Using Verto, project managers and team members can:

Verto is designed for organisations that want to improve how they work together. Get in touch with our specialist team for more information, or book a demonstration at a time that suits you.