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According to a study by Deloitte conducted in 2018, less than a third (28%) of executives report knowing about their corporate culture. The latter two-thirds of executives understand its importance but are unable to describe it.

Everyone agrees that corporate culture is important. So why are some companies reluctant to invest in it? The hesitation comes from it being often misunderstood and hardly tangible. 

On paper, the concept of company culture is not tangible. Still, it must be reflected in everything from the office design to company policies. Perhaps company culture is more tangible than many assume it to be?

Keep reading for statistics and valid arguments to convince your leaders that it’s finally time to invest in your corporate culture.

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What is Corporate Culture

The idea of company culture is typically associated with hypothetical values. It's a philosophy, a shared mission. These ideas underpin the organization--its people, policies, practices, and more. 

An influential culture allows a company to create a clear identity and differentiate itself from the competition.  For example, values like innovation, inclusion, transparency, and creativity are often articulated as the building blocks of company culture.

Still, it's not enough for a company to pay lip service to these values. In short, having them on paper does not constitute having a strong company culture.

A company with a rich culture manifests these values in everything they do.

Even from the very first moment candidates send in their CVs, the culture should be evident.

As a case in point, it's clear if you step into the office of a company with poor culture. The energy is bleak. Employees do not greet each other, there is little conversation, and the atmosphere is rather cold. But, when the corporate culture is inspiring, candidates rush to your doorstep. Employees stay loyal for longer.

Ultimately, companies will notice real, tangible benefits when investing in company culture. With these examples below, you will quickly understand the measurable ROI of an investment in company culture.

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4 Benefits of Investing in Company Culture

Attract candidates rather than chasing them

The terms Inbound and Outbound used in marketing can also be applied to your recruitment strategies. They refer to efforts used to receive applications (Inbound) and the hunting of candidates (Outbound).

The advantage of Outbound is that you get applications quickly by contacting exactly the profiles you have targeted. However, it can be long, tedious and thankless to solicit people via LinkedIn when the majority leave your messages unanswered.

Inbound is about making efforts to create an attractive employer brand without contacting candidates directly. For example, you can write articles, publish photos of your employees on social media, sponsor academic associations, etc. People will send you their CVs directly because they have heard about you.

Inbound strategies are a slow burn. They require more time to start but are more profitable in the long term. The higher your reputation and credibility, the easier it becomes to convince candidates to work for your company.

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Boost Employee loyalty (and reduce turnover)

Company’s boasting rich company cultures are better, not only at attracting, but retaining employees.

Job seekers consider company culture to be an essential part of the evaluation of a potential offer. Studies show that at least one-third of job seekers would pass up the perfect job if the corporate culture were a bad fit.

The people you choose to spend time with likely have similar interests and values as you. You have a good time with these people precisely because you see eye-to-eye with them. The same idea applies to work relationships. When colleagues hold similar values and aspirations, going into work will feel inspiring and exciting, rather than dull and routine. When employees look forward to going into work because they feel energized by the environment, they will be more likely to stay with your company long-term.

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Increase profits

At first, prioritizing company culture might seem like an expense that takes away from your bottom line. For example, when you organize team activities during working hours.

Let's take that example and break it down further to transform this expense into an investment. Suppose you pay for an activity for ten employees, the price can be around $300.

It may seem trivial, but the bonds that employees will forge together, the "inside jokes" that everyone will talk about in the office for months, the new friendships that can develop...All these results will help you improve your organizational development practices, and therefore, increase employee productivity.

Let's go back to the example of the $300 for the team activity. A recruitment agency will charge between 15% and 20% of a new employee's annual salary. For an employee who earns $100,000 a year, it's the equivalent of $15,000 to $20,000 for EVERY job! We can do a ton of activities that will leave their mark on many employees' minds with such a budget.

Also, a recent Gallup study mentions that companies with an influential corporate culture and committed employees increase their profits by 21%.

 

stand-out

Stand Out From the Competition

An influential corporate culture with distinct values creates a dream.

In several sectors facing labour shortages, competition is fierce. Recruitment deadlines must be tightened, and substantial reasons must be put in place to convince candidates to accept our job offers. By having a corporate culture that differentiates itself from others, your business will be more enticing.

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Final Thoughts

Although there is no mention of corporate culture in labour standards, it is essential to attract or retain the best talent. It saves you time, builds employee loyalty, increases profits and sets you apart from the competition.

Remember that each company has its own corporate culture: It is the workers who make it, define it, and contribute to its evolution.

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