“Culture is simply a shared way of doing something with a passion.” —Brian Chesky, co-founder and CEO of Airbnb
Psychologist Ed Schein first coined the phrase “company culture,” defining the concept as a set of common beliefs and habits developed by a group to solve problems and fit in. So how can we build such a culture?
Ingredients to a Happy Workplace
We spend a third of our lives at work, so it’s beneficial to ensure the workplace we spend these hours within is a positive one. Since the core of every successful company is in its operations, let’s look at some core elements of a successful and happy workplace.
Defined Core Values
The three Cs of company culture are communication, collaboration, and coordination. At the foundation of any strong company lies the ability to communicate a clear set of core values and a well-defined mission. These values should reflect what the company stands for and guide all business decisions (coordination). Involving employees in the process of defining those values (collaboration) ensures that they resonate with everyone in the organization.
Strong Leadership
Likewise, a positive workplace begins at the top. A survey by 100 Best Companies found that workers valued a manager’s honesty and ethics, as well as their willingness to engage with employees. Additionally, a study by MIT Sloan Management Review found that respect is one of the top deciding factors in a happy workplace. Managers with integrity can positively affect an employee’s overall motivation, workplace satisfaction, and retention. For example, the company Adobe minimizes micromanagement to build trust among workers.
Communication
Open communication fosters transparency and collaboration through regular check-ins, meetings, and feedback sessions. A 2023 workplace survey found that 92% of workers felt valued by management who considered their emotional and psychological well-being.
Investments in Employee Development
According to GoRemotely, 72% of workers leave jobs seeking career advancement, and unrecognized employees are twice as likely to quit. High-stress fields like hospitality and nursing have the highest turnover rates.
Some of the ways management can invest in employee development include:
- recognizing and rewarding employees’ efforts.
- providing opportunities for growth and development.
- allowing employees to own stocks or part of the company to promote loyalty and motivation.
Job Security
When professionals feel safe at work, they become more productive and efficient. This improves mental health and focus, encouraging innovation and risk-taking without the fear of getting fired.
As a result, employee turnover decreases, enhancing the company’s reputation among clients and partners. Additionally, it’s cost-effective: It takes about two years for a new employee to efficiently take over a previously held position.
Work-Life Balance
A healthy work-life balance is essential for employee well-being and productivity, and this professional value has seen renewed emphasis since the Great Resignation. Encouraging employees to take breaks, use their vacation days, and maintain boundaries between work and personal life helps prevent burnout.
Benefits
Reasonable benefits and perks help attract and retain top talent, allowing your company to set itself apart. Prospective talent will usually consider at least health insurance and paid time off when considering a new position. In fact, healthcare one of the main factors preventing unhappy employees from resigning.
Foster Team Spirit
Building community through team activities, social events or volunteering fosters innovation and strong relationships.
Why Does Company Culture Matter?
A good company culture:
- shapes a company’s identity.
- drives innovation, growth, and productivity.
- helps attract and retain talent.
- turns employees into powerful advocates.
- improves customer relations and satisfaction.
- strengthens brand reputation.
Professional Outlook
While flexible and remote work have become commonplace since the COVID-19 pandemic, future businesses will see an increase in integrating AI software like Chat GPT, promoting diversity and mental wellness, and encouraging employee autonomy.
As climate change becomes a growing concern, environmental sustainability is becoming a central focus across all industries. Companies are also shifting towards purpose-driven goals and values, ensuring that everyone can find meaning and impact in their work.
These trends reflect a transition towards more human-centric and socially responsible workplaces.
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Sources:
https://www.linkedin.com/pulse/why-company-culture-starts-top-andrew-kelly
https://www.linkedin.com/pulse/5-benefits-positive-company-culture-carowinds