During times of dynamic competition on the labor market, companies operating in different industries must use various techniques to attract desirable candidates. After all, job seekers nowadays pay attention not only to the amount of the proposed salary, but also to the offered benefits, implemented projects, used tools, flexible working conditions and the organizational culture prevailing in the company. What is corporate culture and why is it so important today?
Corporate culture – table of contents:
What is corporate culture?
Brand strategy, company strategy, corporate culture – some people put all the mentioned phenomena on an equal footing, which confirms the importance of the discussed element. In the case of many companies, it is the organizational culture that has influenced their success or spectacular failure. Why? Because corporate culture is created by people, and it is mainly people who lead to a company’s profit or loss.
So what is organizational culture? Although the concept has been around since the 1980s, it is still not possible to give a single, universal definition. It is observed, however, that corporate culture encompasses the norms and behavioral patterns (resulting from the company’s values, vision and mission) that must be followed by all employees. Importantly, it applies equally to both management and any lower-level employee, and manifests itself in external business interactions, influencing how operations are conducted.
Thus, organizational culture is a unique element for a given entity, which helps differentiate one company from another (e.g., its direct competitors) and is visible in every area of a company’s operations: from recruitment interviews with candidates (e.g., in the way the interview is conducted, the content of the job ad or the tasks to be performed), to the employees’ daily functioning (e.g., terms and conditions of employment, the way projects are carried out, dress code, treatment of customers, benefits), and the way the company communicates in social media and other channels.
Why is corporate culture so important?
An organizational culture that is in line with the values, views and beliefs of a specific group of candidates allows the company to build a competitive advantage in their eyes and successfully attract employees who will fit into the prevailing principles. However, this is not the only reason why organizational culture is important for any company betting on attracting the best employees from the market. What arguments can be given?
1. Organizational culture integrates people with each other
By developing behavioral patterns and norms that are common to all employees (regardless of hierarchy in the organizational structure), already during the recruitment process, we can ensure the best cultural fit for new hires. In this way, we facilitate both onboarding from the beginning and later integration between new and old employees. After all, it is easier to maintain harmony between individuals when they share common values and work toward the same goal.
Thus, thanks to organizational culture, it is not only easier to attract the right candidate, but also to retain employees who represent a certain value to the company. Everyone would like to work in a place that suits them in terms of values and where they can feel part of the community.
2. Organizational culture builds a company’s external image
Corporate culture defines the way a given company is perceived by employees and outsiders. The ways in which business is conducted, how workflow is managed, how teams interact and how customers are treated – these are just a few elements that are visible externally and build the image of a suitable partner for cooperation. Thus, culture brings benefits not only internally, helping to attract employees, but also externally, opening up new prospects for growth.
3. Organizational culture affects employee well-being
The right cultural fit can also have a direct impact on employees’ efficiency and their daily well-being (both physical and mental) in the workplace. A healthy culture means, among others, caring for employees, as well as giving them the possibility to speak up and show initiative. Everyone works better in such an environment than in a place devoid of the aforementioned qualities.
These are just some of the reasons why every company should take care of its organizational culture. It is crucial that all employees have the same awareness of important values and accept the need to behave according to them. Only then will it be possible to say that a company has an externally noticeable organizational culture.