A strong and positive corporate culture is one of the most important components of a successful business.
And why is that? Because a strong corporate culture attracts and retains the best talent. It also enables us to offer the best customer service and build employee loyalty to the organization.
The benefits of taking care of your corporate culture don’t stop there. A strong corporate culture increases employee motivation and satisfaction, helps you achieve your objectives more quickly, and generally improves performance and productivity.
In short, corporate culture is the soul of a company. It is what guides management decisions. Although it can be shaped consciously and voluntarily, it also changes naturally.
In this article, you will learn:
- What is corporate culture
- What is the link between corporate culture and employer brand
- What are the components of corporate culture
- 10 drivers for building an attractive corporate culture
What is corporate culture?
Corporate culture, also known as organizational culture, refers to the set of values, beliefs, behaviors, and norms shared and conveyed within an organization.
For example, one company may have a performance-driven culture where speed of customer service is a priority. Another company might instead emphasize a culture of innovation. Employees would be encouraged to share their innovative ideas and think outside the box.
Corporate culture therefore influences the way employees interact with each other, as well as with customers and suppliers. It also plays a direct part in establishing a company’s reputation.
It is influenced by the company’s values and mission. It is not fixed in time, and may change or evolve over the years, either naturally or as a result of specific decisions.
Corporate culture stems from management decisions, but is also strongly influenced by the human resources department, where one exists, and by the employees in general.
Is there a link between corporate culture and employer brand?
The concepts of corporate culture and employer brand are closely related, but they’re not quite the same thing. Although they feed off each other, their objectives are quite distinct.
Employer brand refers specifically to a company’s image and reputation. It is primarily used to attract and recruit new candidates, and to retain employees.
⚡It is directly influenced by corporate culture, but is first and foremost a marketing effort. Employer branding is therefore a narrative constructed by the company itself, and is generally influenced by corporate culture.
Corporate culture, on the other hand, is a more organic concept, which can be influenced by the members of the organization, but which also builds up quite naturally.
Corporate culture, or organizational culture, represents the values, norms, behaviors and practices of a company’s members. In a way, it defines the company’s identity (or personality). It provides a framework for employees to operate within, and establishes what is and isn’t accepted in an organization.
The components of corporate culture
The concept of corporate culture can be broken down into several aspects, generally referred to as components.
It is these components that define an organization’s culture. Each of them may be more or less important, depending on the company.
There are four main ones.
1. Company history
A company’s history can have a major influence on its culture. This is made up of the organization’s rituals and traditions. These can influence management decisions and shape the employees’ sense of belonging.
For example, a company that was founded many decades ago might place a great deal of importance on tradition, leaving little room for innovation.
On the other hand, a young company might focus its decisions on innovation and creativity, inviting team members to come up with out-of-the-ordinary solutions.
Companies can also organize annual or recurring activities to create their own traditions. Such activities also serve to thank employees for a job well done.
2. The company’s vision
A company’s vision is its purpose, its “why.” It’s what dictates the goals and motivates employees to give their best every day.
Having a clear corporate vision is essential to fostering employee engagement and achieving objectives more quickly. It also makes it easier to identify the organization’s values.
3. Corporate values
A company’s values directly influence the beliefs that guide the team members’ actions and decisions. They are the most important component of corporate culture.
Examples of widespread values include:
- Performance
- Innovation
- Creativity
- Well-being
- Environment
- Ethics
- Safety and security
- Transparency
- Honesty
- Communication
A company’s values give meaning to its employees’ job and guide them in their work and behavior.
4. Rules of operation
An organization’s rules of operation play a major role in shaping its corporate culture. They define the norms and behaviors that are expected and accepted of employees and managers.
Rules of operation include existing policies or company procedures. They can be more or less structured, depending on the organization.
They also include the way the hierarchy operates. For example, some companies will have a very vertical hierarchy, where seniority is highly valued. Others will opt for a horizontal hierarchy where everyone’s ideas are valued and taken into account, regardless of their position in the company.
10 drivers for an attractive corporate culture
Having an attractive corporate culture boosts employee work motivation, promotes retention, and even makes it easier to recruit new candidates.
Here are 10 concrete actions to get you there.
1. Develop inspiring leadership
When company leaders demonstrate leadership, they succeed in inspiring their team members to give their best. Inspiring leadership also contributes to building a positive corporate culture, where employees feel included in all decisions.
To achieve this, don’t hesitate to offer leadership training to key employees. Make sure they have the tools and knowledge they need to inspire and lead their team. The same goes for their emotional intelligence, a fundamental aspect of solid, healthy leadership.
💡Invite the company’s CEO to share the organization’s results, objectives, and challenges with employees on a regular basis. By doing so, employees gain a better understanding of what’s going on in the company and feel closer to management. This can take the form of a quarterly meeting or even a newsletter sent internally on a monthly basis.
2. Communicate transparently
Communicating effectively and transparently enables employees to better understand the company’s objectives. This makes it easier for them to see how their work contributes to the company’s success, and gives meaning to what they do.
Transparent communication enhances corporate culture and creates a bond of trust with employees.
💡 Set up transparent salary scales so that your employees know exactly what they can expect in terms of career development. You can also clearly list your expectations so that your employees have clear objectives to achieve.
3. Value diversity
Valuing diversity within your team contributes directly to creating a corporate culture based on open-mindedness and employee well-being.
Having greater diversity on your team will also encourage new ideas. It will help you avoid surrounding yourself with people who all share the same opinion.
💡Work on your recruitment process to ensure that you offer an inclusive experience to the candidates you interview. You can also pay for diversity training for your recruitment team to make them more sensitive to this issue.
4. Encourage concrete skill development
To retain your employees, make sure they have the opportunity to develop their skills and advance their career. Offer the same opportunities to your employees whether they are part-time or full-time.
Who’s to say your new part-time employee won’t become your next manager?
In addition to being motivating for employees, offering them more training will also ensure that they become more qualified, offer better service and work performance, and are more loyal to your organization.
💡 Establish career objectives with your employees during their performance evaluation so that you can offer training courses in line with their interests. At the same time, determine an annual budget for employee training.
5. Set up flexible working conditions
Your employees have a life outside work, and they should be able to enjoy it. Enabling your employees to have a good work-life balance will contribute directly to their well-being, and at the same time improve your company’s organizational culture.
If your employees feel that you care about their well-being, they’ll be much more inclined to give their best and work for you for a long time.
Offering flexible working conditions will also help you stand out from your competitors and attract more candidates when you have a vacancy to fill.
💡 Allow your employees to swap shifts with their colleagues. Use scheduling software to automate processes and offer your employees greater flexibility.
6. Recognize your employees
Recognizing the good work of your team members helps build a positive working atmosphere, where all members are recognized and celebrated for their true worth.
💡 Use an employee recognition platform to congratulate your employees on their good deeds in a public way. Some employee management software such as Agendrix actually offers a recognition module to encourage practice across the entire company.
7. Develop team cohesion
Team cohesion within your organization has a major influence on corporate culture. If employees get along well and have good relationships (professional or friendly), the working atmosphere will be much more pleasant.
Teamwork will also be easier, and conflicts between employees will be less frequent.
💡 Organize team-building activities so that your employees can get to know each other outside work in a more convivial setting. These kinds of activities also contribute to employee retention.
8. Create a positive work environment
If your employees feel good at work, they’ll tend to perform better and be more motivated. To create a positive working environment, it’s important not only to adopt humane management methods, but also to pay attention to the workplace itself.
So make sure you have fair and transparent policies and processes in place. But don’t neglect the physical working environment either. Make sure you offer a comfortable and attractive employee lounge, for example.
💡 Renovate the workplace to ensure that your employees are comfortable and have the best possible work tools at their disposal.
9. Encourage autonomy and innovation
Trust your employees; you hired them for a reason. If you’ve done your job, they should be able to carry out their tasks without your help.
Avoid micromanaging them, which is a trait of a bad manager. Instead, invite them to ask you questions and ask for your help when they need it. This way, they can develop their skills and grow.
💡 Don’t penalize your employees for the slightest mistake. Innovating means taking risks and facing failure at times.
10. Be authentic
Your actions must reflect your company’s values. If you say one thing and do the complete opposite, you’ll not only lose the trust and loyalty of your employees, but also contribute to a decline in their motivation.
Don’t hesitate to include them in your thought process and take their opinions into account. Take an interest in them, and take the time to ask for their feedback.
💡Conduct anonymous surveys to measure employee satisfaction and improve the way you do things.
What Is Corporate Culture?
Corporate culture, also known as organizational culture, refers to the set of values, beliefs, behaviors, and norms shared and conveyed within a company.
Corporate culture defines the organization’s identity and helps establish the framework of what is accepted or expected of employees.
What Are Some Examples of Interesting Corporate Cultures?
Examples of interesting corporate culture include:
- Patagonia: the employee handbook is called “Let My People Go Surfing.”
- Adobe: employees are encouraged to innovate and think outside the box.
What's the Point of Corporate Culture?
Corporate culture is useful to:
- Improve employee performance
- Attract and retain talent
- Offer better customer service
- Build corporate reputation
- Differentiate from competitors
- Reduce absenteeism
- Increase customer loyalty
- Increase employee motivation and satisfaction
How to Develop a Strong Corporate Culture?
The steps to developing a strong corporate culture include:
- Identify corporate values and mission
- Seek employee input
- Review processes and policies
- Communicate the new vision with employees
- Update and work on corporate culture on an ongoing basis
