To some business leaders, work culture is just a fancy way of describing the atmosphere in the workplace, evoking images of ping-pong tables, bean-bag chairs, and other trendy ways to display what a hip work environment you have. While these are certainly aspects of some work cultures, they don’t really get to the root of what work culture actually is or its effect on your organization. More than just morale-boosting exercises, workplace culture can have a profound impact on your business — both internally and externally.
The Real Effect of Work Culture
One of the fundamental elements of work culture is keeping employees engaged with their jobs. This, in turn, has a measurable impact on employee productivity; numerous studies have shown engaged employees are more likely to buy into their organization’s mission, and are consequently more incentivized to perform at a higher level. As culture improves, so does productivity.
As it affects productivity, work culture can also positively influence employee turnover. Research from Gallup has shown low-engagement teams endure turnover rates that are 18-43% higher than highly engaged teams. While high turnover rates can be an economic drain on your organization, a positive work culture driving high engagement means employees are less likely to look for work elsewhere, keeping talented, passionate workers on your team.
Work culture isn’t just an internal matter, though. Even if you don’t publicize your work culture, people hear about it one way or another. For example, your employees will inevitably clock out, go home, and tell their families and friends about their day at work; what story do you think they’re going to tell? In what light will it paint your brand, your leaders, your managers, and you?
People who hear good things about your organization will be more likely to support or patronize it — or even work for it. So, maintaining a healthy work culture in which employees feel valued and supported can ultimately lead to more positive standing with your community as well as the job market. This cuts both ways, however; if people hear negative stories or even rumors about your work culture, they may be less inclined to do business with you and prospective hires will be more likely to look elsewhere. Improving your work culture affects your brand equity just as much outside the organization as it does inside. Control the narrative by creating the work culture you want and give your employees something positive to share with their peers.
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