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What is Company Culture?

Kanarys Staff

11/24/2021

What Is Company Culture?

Company culture, also known as organizational culture, is the collection of personality traits, values, and behavior patterns that characterize a particular business. It isn’t the characteristics that a company thinks it has, claims to have in its public relations or human resources materials, or aspires to have but instead the actual traits, values, and behaviors that are manifested in the day-to-day actions of its leadership and employees. 

 

There are several factors of organizational culture which are important to understand. They include:

 

  • To at least some extent, it will reflect the national, regional, and local cultures in which it operates, although it can also expand on or diverge from those cultures. 

  • Especially in a larger organization, it may not be consistent. Diverse teams, business units, or hierarchical levels may have their own distinct subcultures.

  • Culture can be strategically planned or the unintentional result of decisions, attitudes, and actions taken over time.

  • Culture is dynamic. Some changes may be small, others may be large, some are quick, and some are slow, but it is unusual — and unhealthy — for a company culture to remain stagnant for long periods. 

  • Incentives shape culture. Those incentives can include money, advancement, recognition, generous PTO policy, or the simple approval or disapproval of co-workers. 

  • Culture affects every aspect of a business, from employee benefits and performance reviews to sales techniques and customer service. 

  • A healthy culture leads to improved performance for a company, while an unhealthy culture can sabotage the best business efforts.

 

What Are The Benefits of a Healthy Organizational Culture?

Benefits to Employees

When their needs and values are respected and reflected by their company, workers are more likely to enjoy their work; feel connected, supported, and valued; and be motivated to produce and innovate more. A good cultural “fit” is an essential factor in the jobs employees accept and the length of time they stay. 

 

Benefits to the Company

A healthy culture is a significant draw for top talent, especially in a tight labor market. Satisfied employees remain on the job longer, lowering a company’s turnover costs. They also tend to be more productive, more informed and connected internally, and more likely to help recruit others. A healthy culture is, in fact, a significant contributor to overall business success. Studies show that revenue growth is tied to corporate culture — companies with healthy cultures are one and a half times as likely to experience revenue growth of 15 percent or more over three years than companies with toxic cultures.

 

Signs of a Toxic Workplace

While every healthy and unhealthy company culture is slightly different, some basic signs differentiate the two types. In general, healthy cultures are driven by positive qualities such as appreciation, trust, integrity, teamwork, safety, and respect for all employees. 

On the other hand, some signs of a toxic workplace include:

 

  • Employees or specific groups of employees feel their voices are not being heard.

  • Some employees feel uncomfortable in the workplace because they feel disrespected or do not reflect values important to them. 

  • Positive recognition is reserved for major milestones and work anniversaries. Criticism, however, is rampant.

  • The leadership team is not living the “company values.”

  • There is a lot of strife within teams.

  • Members of different generations are at odds.

  • Most employees are stagnant in their positions, not learning and growing.

  • There is significant and rapid employee turnover.

  • Employees feel unmotivated.

 

The traits of healthy cultures can, and should, vary from organization to organization. Some businesses are more formal and some more casual; some may stress learning while others stress community involvement; some are more about teamwork while others emphasize independent contributions. However, these negative signs are strong indicators that a culture is failing both the employees and the employer, and steps need to be made toward positive change.

 

Building A Culture of Inclusion

Inclusion in the workplace is essential for any company seeking to build a culture where employees feel a strong sense of connection and belonging. Studies have shown conclusively that this type of culture leads to increased personal satisfaction for employees and a competitive edge for companies. 

 

Kanarys is Your DEI Champion

At Kanarys, we are the diversity, equity, and inclusion people with the data-driven approach. Since 2018, Kanarys has aimed to change the world by creating equitable workplaces where everyone belongs. We guide your organization’s DEI path every step of the way with courage and collaboration. It starts with data, analytics and insights, and continues with recommendations and implementation. 

Our mission, as your partner and champion in the ever-evolving DEI journey: Help you understand what it takes to foster lasting, systemic change today and for tomorrow. Because when you succeed with DEI, your employees can thrive—and so can your organization.

 


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