“Being a great place to work is the difference between being a good company and a great company.”
-Brian Kristofek, President and CEO, Upshot
Both employees and employers agree, a great company culture is a key component of a successful business. The following stats confirm this statement:
- 88% of employees believe a strong company culture is key to business success
- and 94% of executives feel the same
The consensus is that culture plays a key role in the difference between a businesses success or failure, so why is it so difficult to achieve? Why have businesses failed at creating a culture that attracts and retains top talent?
In a study of over 1,400 North American CEOs and CFOs, more than 90% said that culture was important at their firms; over 50% said corporate culture influences productivity, creativity, profitability, firm value and growth rates; but only 15% said their firm’s corporate culture was where it needed to be. This is where it gets interesting as the finger gets pointed in many different directions. The blame is spread all over the map with HR, hiring managers, “under performing” reps and even marketing taking the heat. So who’s responsibility is it to spearhead this shift of culture? As a business leader I was taught to take ownership when my team missed the mark. To look at myself first and foremost and reflect on what could/should have been done differently and what I need to do to fix the current situation. We seem to be living in a pass the buck era where business owners are content to accept/settle for sub par management and managers constantly make excuses and pass blame to the most convenient source instead of crafting solutions and building/providing a foundation that cultivates success.
Below are some statistics that show why culture is vital to the success of an organization and how it impacts many areas, departments, the overall brand, and roles within a company.
- 46% of job seekers cite company culture as very important when choosing to apply to a company, 47% of active job seekers cite company culture as their driving reason for looking for work, 15% of job seekers turned down a job offer because of the company’s culture and 35% of employees say they would pass on the perfect job if they felt the company culture wasn’t a good fit.
- Employees who don’t like their organization’s culture are 24% more likely to quit and 76% of employees claim they would be more loyal to their current employer if flexible work options were offered.
- 42% of millennial employees say learning and development opportunities are the most important factor when considering a job opportunity. 43% of workers say they left their company because of career path constraints. Without Professional development opportunities, 67% of millennial’s say they would leave their current position. 94% of employees would stay in their current role longer if they felt the organization invested in their professional development.
- 27% of employees report leaving their jobs due to lack of recognition in the office, and 79% of employees say they would be more loyal to their employers if they received more recognition.
- 76% of employees believe that a well-defined business strategy helps cultivate a positive work culture.
Your culture affects your bottom line as companies with strong cultures saw a 4x increase in revenue growth. Culture links happy employees, productivity, and profit. Companies studied with satisfied employees outperformed competitors by 20%, and this happiness attributed to 12% more productivity. I have personally experienced the good, the bad, and the ugly in regards to culture, and can attest to the importance of culture in regards to success. At One Broken Cog, we’ve crafted a plan to help businesses implement and improve their company culture, so reach out to us now, your future depends on it.
“Customers will never love a company until the employees love it first.”
-Simon Sinek, author, Start with Why