Company culture: from fluffy HR term to a driver of business success

We all remember when company culture was a trendy buzzword pioneered and championed by startups and “cool” companies. It was a far cry from the strategic company culture we see today—a culture built around employee well-being, corporate social responsibility, and values that extend beyond a plaque on the wall.

But what is culture really? And how do you build one that attracts top talent and positively impacts your business? We're breaking it down and sharing a few tips on how you can create a company culture that:

• Increases revenue
• Draws in exceptional talent
• Keeps employees around
• And more

What is company culture?

If "company culture" conjures up thoughts of fully stocked kitchens, ping pong tables, and open offices with bean bag chairs, you're not wrong. But these perks are more cool benefits than an actual company culture.

When we talk about company culture, we're talking about your company persona—the shared values and characteristics that define your business. It includes things like:

• Values
• Mission
• Attitudes
• Identity
• Behaviors

And good company cultures are built—intentionally. They don't just happen. And they require action. While a mission statement and core values may define your organization, if you don't live out that mission and no one embraces company values, they're just words.

Forbes sums it up best:

In a positive company culture, employees feel safe, heard, and appreciated. It’s where they’re engaged and motivated to do their best work because the culture empowers them to grow and find meaning and purpose in their roles.

Why does company culture matter?

From attracting and retaining top talent to increased employee productivity, company culture—done right—can be a game-changer for your organization. Here's how:

• It draws in stellar employees. Nearly half of employees cite company culture as very important in determining whether they apply to your organization. And with everyone competing for top talent, they have their choice of where to work. Company culture can be why they chose your business over another—60% would leave their employer to work for an organization with a better culture.
  
  
• It increases revenue. According to Gallup, a culture that attracts top talent can see a 33% increase in revenue. And workforces with engaged employees (a byproduct of a strong culture) see over 20% higher profitability. But it also fuels innovation, which can lead to increased revenues. Why? Because employees feel supported and safe in sharing new ideas that can lead to innovative solutions.
  
  
• It increases employee engagement. While the 2020 pandemic saw some of the lowest employee engagement rates ever, companies that focus on creating a positive company culture see the opposite. Research revealed that employers with a solid culture have up to 72% higher employee engagement.

Employees are the foundation of any successful company. But if they're unproductive or disengaged, they can't help you drive company growth. So think of company culture as the strategy to keep employees happy, productive, and engaged—and contributing positively to your organization.

“If we want people to fully show up, to bring their whole selves including their unarmored, whole hearts—so that we can innovate, solve problems, and serve people—we have to be vigilant about creating a culture in which people feel safe, seen, heard, and respected.” - Brené Brown, Author of Dare to Lead: Brave Work, Tough Conversations, Whole Hearts

When should you start building company culture?

Company culture happens with or without you building it. But the difference between great workplace cultures that foster employee engagement and business growth and lackluster company cultures that repel talent? Intentionality. Culture happens. Exceptional culture is built.

Organizations that proactively create a company culture and thoroughly think through it are those that reap the most benefits... which is why you should start building it from day one. We'll show you how.

"Be persistent; if you defer this work because it feels hard and distracting now, you’re just setting yourselves up for a much harder (and eventually perhaps impossible) problem to solve later. Culture reinforces itself and becomes more rigid over time, so it’s important to nudge it in the right direction as early as possible.” - Dustin Moskovitz, Co-founder & CEO of Asana 

How do you create a positive company culture?

You know what company culture is, why it matters, and when you should start building it—now it's time to start building an intentional and healthy company culture. Here's how:

• Be your culture. While culture permeates the entire organization, it starts with leadership. Lead by example and become the embodiment of your culture—your employees are always watching. You can show them what your true company culture is by being the culture. Remember, it's more than just words on a wall—you have to walk the walk, too.
  
  
• Define your mission, values, and wants and needs clearly. Culture is built around core values, so be clear about what those are and how your culture aligns with them. Without a clearly defined idea of who you are as an organization and your mission and values, you can't create an intentional culture.
  
  
• Prioritize inclusiveness.  Be that diversity, equity, and inclusion (DEI) or another initiative, inclusion plays a crucial role in a positive workplace culture. Not only does it foster an environment where differences are accepted—and embraced—but it also creates a culture of belonging where employees feel heard, seen, and safe. When this happens, they're more likely to be engaged, share new ideas, and stay with your organization.
  
  
• Make it tangible. Workplace culture doesn't have to be an intangible idea that's hard to visualize. Creating a playbook that employees can see makes it actionable and clearly outlines what your culture is and what it looks like in action. Include things like, what you believe, do, and say about your mission and values and create a culture statement.
  
  
• Start with hiring. You've probably heard, "Hire for cultural fit!" But what does that mean? While hard skills like coding or data analytics can be taught, values are typically part of who we are, making them harder to change. Hiring people who will fit in with and add to your culture ensures you're hiring candidates who align with your goals, values, and overall culture.

These are just a few ways to create an enviable company culture. But if you're looking for more inspiration on what great workplace culture looks like, take a look at the companies with winning cultures.