The Benefits of Investing in Company Culture

September 28, 2022

Celena Labada

There has always been a debate on the true definition of ‘Company Culture’. However, Great Place to Work has done extensive research for the past 30 years and by listening to the employee experience and analyzing workplace data, Great Place to Work has decoded the psychological meaning as to what truly defines ‘Company Culture’

What is Company Culture?

Essentially, company culture is how you do what you do in the workplace. It is shaped based on the organizational behaviors and organizational values. In return, this creates an experience for the employees and thus creates a certain type of experience for the customers. Conclusively, it is how things get done within the workplace.

What is the best way to measure Company Culture?

Employees are the foundation and strength of any organization. The best way to measure your Company Culture is to listen to the employees and gather feedback on the experience that they are having within the workplace.

You can measure the Company Culture with employee engagement platforms like Emprising. This platform will allow you to see your data by statements, focus areas, departments, demographics and via heatmapping grids. Following on from this, work closely with the Great Place to Work culture coaching team who will support you with best practices on how to keep improving your trust and organizational culture.

Although perks and benefits such as flexible working hours and incentive policies may contribute to a successful company culture, at the end of the day what truly shapes company culture is the experience that your employees are having within the organization.

Want to get recognized for your great culture?

Find out how you can power your people analytics function and show the world you’re a great workplace with our Great Place to Work-Certification™ process.

What organizational variables influence Company Culture?

How employees communicate with one another
How employees are hired, promoted and let go
How available management is to listen to any concerns or ideas employees may have
Employee recognition and empowerment
The process of how decisions are made

Every company uses the above variables in its practices. However, it’s not about conducting the variables it’s about HOW these variables are put into action within the workplace.

Why is having a strong Company Culture important?

1) Financial Gains

Our findings have shown that certified organizations who are willing to invest in culture are more likely to see an increase of 4.1x on Revenue Growth, +827% increase on Stock Price Growth, +756% increase in Net Income, +13% sales per employee and a x15 Return on Investment.

2) Employee Retention

The Great Resignation and the current affairs such as the Covid-19 Pandemic, has created a desire amongst employees to carefully choose a workplace that will value them as human beings and not just an employee.

The more you invest in the employees, the more they will give back in return. Certified organizations have half the turnover rate compared to other companies in the same industry.

3) Customer Service

Consumers want to buy from organizations that care about their employees and portray a meaningful and inspirational company culture. Being certified as a Great Place to Work is the perfect indicator that the organization you are purchasing from is an advocate for the well-being of their employees in the workplace.

Happy employees equals great customer service. Our own studies have shown that consumers are 34% more likely to believe in the service and purchase from a certified company that displays excellent customer service.

4) Innovation

How can you ask your employees to be innovative, when they may not trust your values, leadership effectiveness and they overall do not trust the organization? In an inclusive and comfortable environment, employees are more likely to share their ideas, creativity and be more resilient in situations that require adapting to new changes. In Great Place to Work, we call this Innovation for All

The first step to change is to reflect on the data and the employee experience. If you are looking to measure your company culture and begin this journey in becoming a Great Place to Work, reach out to us