When you think of the phrase, “company culture,” it might call to mind things like casual Fridays, office parties and happy hours. However, research suggests that company culture is more than these surface-level perks, as it significantly influences various facets of an organization, including hiring practices, productivity levels and turnover rates. According to author James L. Heskett, corporate culture “can account for 20-30% of the differential in corporate performance when compared with culturally unremarkable competitors.” 

Job seekers increasingly place culture at the top of their list when considering a place of employment and the most successful companies, like Google and Amazon, share the common element of great corporate culture. Take a look at what defines company culture and how you can create one that thrives.

What is company culture?

A company’s culture is an intangible asset reflecting the shared attitudes, values and behaviors. In essence, it is characterized by the mutual beliefs and standards held by the organization and its employees.

A successful culture is one designed with a clearly defined mission and set of goals. Some might think a cohesive culture means similar people with congruent ideas, but top-performing businesses prove this to be counterintuitive. Successful company cultures don’t require coworkers to share political, religious, or ideological beliefs, but they do require a shared mission and core business values. An effective company culture provides employees with a sense of purpose and motivation beyond a means of income and revenue generation for the company.

Why is company culture important?

While an outstanding company culture might seem like a nice perk, it is actually also essential to success, and here is why:

• Culture cannot be copied: An individual culture cannot be duplicated and that’s a distinct advantage. When you are in sync with your coworkers, you’ll be in sync with your clients and that creates brand loyalty.

• Increased job satisfaction: When employees' values align with the company's culture, it fosters a sense of belonging and purpose, leading to a deeper emotional connection to the organization and increased investment in their work.

• Decrease in turnover: A positive work environment also decreases turnover as happy employees aren’t looking to leave.

• Performance improvement: Enhanced productivity occurs in environments where people enjoy what they do.

• Attracting new hires: A strong culture is a competitive advantage not only in beating competitor’s sales but also in attracting new hires, especially in today’s candidate-driven market.

How to create a thriving company culture

Every company has its own unique culture, which can grow naturally or be intentionally built. It's really important to actively shape a company culture by taking steps to guide its direction. Use these tips to compile the right team and strengthen your company’s culture:

1) Define your purpose and values

Start by defining your core mission and values and let those guide your decisions. Everything from the people you hire, to the policies you enforce and the benefits you offer should be governed by your guiding principles. Your purpose defines why you do what you do and your values determine how you do it. 

2) Lead by example

A company culture originates from leadership - how do you interact with your team members? For instance, If your goal is to foster strong collaboration and instill a sense of value in your employees, it's essential to model these behaviors yourself. Arrange for mentorship opportunities and organize "town hall" style gatherings, creating a platform for employees to express their thoughts. Strive to be accessible and approachable, nurturing a community spirit. 

3) Hire people based on your values

Identifying those traits that make an individual more likely to embrace and embody the organizational culture is crucial. Therefore, instead of solely focusing on hard skills and experience, you should also seek out and value those personality traits that foster a strong cultural fit. These identified traits should then be incorporated into the company's mission statement and sought in future hires.

Utilizing cognitive and personality assessments can help identify these traits in potential hires. Bryq facilitates exactly that. Our I-O psychologists study each company’s cultural pillars and suggest a link between them and the traits that the Bryq assessment measures. After review and adjustments, a unique Culture indicator is created in the Bryq platform, enabling HR professionals to assess cultural fit for employees, both new and existing.

4) Provide space to connect

A team with many different types of people can help bring better business results. But sometimes, people's different ways of living, habits and personalities can make them stick to their own departments or workspaces. To create a united team culture, it's important to give people chances to mix and socialize. Big company events and social hours are good, but often, the best human connections happen during everyday work life. Spaces like a common area, break room, outdoor patio, or game room can help different types of people connect and find things they have in common.

5) Foster traditions

Most people spend more waking hours at work than they do at home. In that sense, your coworkers are a type of family and successful company cultures promote that. Traditions are the things that set groups apart and give them a sense of belonging. They also take the mundane nature of the workday and infuse it with anticipation. Strong companies look to individualize their traditions and make them unique to their purpose. Traditions should be specific to your company’s culture, so take the pulse to see what type of tradition would best fit your atmosphere.

In conclusion, creating a successful company culture is not just about casual Fridays or office parties. It's about fostering a shared mission, core business values and a sense of purpose among employees. It's about leadership setting the right example, providing spaces for connection and hiring based on shared values. 

Tools like Bryq can help streamline this process, ensuring that new hires not only resonate with your corporate culture, but also contribute to its reinforcement and growth. If you want to learn more about how we can implement this in your organization, feel free to book a free demo with us!