Business owners are starting to pay more attention to the importance of corporate culture and the significant role it plays in the success of an organization. Investopedia defines corporate culture as “the beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions.” It goes on to talk about how corporate culture develops organically based on the traits of the people you hire. A business owner understanding the importance of corporate culture is the key component to establishing a good one.
Here are just a few components in establishing a good corporate culture:
- Leadership – This is where it starts. The employees and management team should have and appreciation for the value system of the leadership team. If your leadership team holds themselves accountable, it’s easier to hold your staff accountable. Transparency between the leadership team and the staff is also very important. It’s easier to manage in the company’s early stages, getting more complex as the company grows.
- Structure – Having the company’s policies and procedures in writing and easily accessible to employees is very helpful. Clarity in the setting of expectations allows both the employees and the leadership team to have a stronger sense of security.
- Communication – Most of us do not like being kept in the dark in regards to information. The steady flow of information gives us a sense of empowerment and the opportunity to positively contribute to a company’s success. Creating an environment where thoughts and actions that are communicated are instantly met with negativity or penalties.
A healthy corporate culture goes a long way in retaining good employees and managers. There are many instances where people are willing to sacrifice greater financial gain for a more pleasurable work environment.