Corporate culture is often dismissed as a soft concept in senior management levels. But this stance is misleading as the ability to inculcate specific values into employees is among the most crucial work executives need to do........

1. Tying Your Corporate Culture To Profits
Typically, corporate culture is often dismissed as a soft concept in
senior management levels. But this stance is misleading as the
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ability to inculcate specific values into employees is among the
most crucial work executives need to do. Culture reflects a
company’s soul and investing in it is the wisest decision any
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corporation can make.
However, what most companies don’t realize is that corporate
culture can grow whether or not one plans it. The longer a
company ignores its culture, the higher the chances of cancerous
office politics, which block growth and the free flow of information.
An unhealthy culture inhibits innovation and can take the shape of
a pervasive, insidious force that drains employee productivity. On
the other hand, an effective corporate culture will actually show
better operating profits.
How does this happen?
Satisfied employees are more likely to stay in a company, leading
to fewer new hires, which in turn results in lower wage costs for
talent. With lower recruiting and training costs, the company
benefits from fewer lost sales and higher sales per employee.
Further, higher employee continuity directly leads to better
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2. customer relationships and thus lower marketing costs.
However, the creation of a creative and open corporate culture is
easier said than done. First off, companies need to pick the right
kind of talent who are suited to both the job and the culture. Open
communication from HR or peers is necessary for employees to
develop realistic expectations and trust that the company will
consider their best interests. Companies need clear-cut policies
and practices as well as financial incentives, referral schemes and
reward strategies to keep employees engaged, satisfied and
productive.
Over time, it may be necessary for companies to review the values
they are espousing to stay in touch with the times or align the
culture with the new economy. Although this may sound like a lot
of work, developing a common corporate culture is the basis for
creating a company with the capabilities to not only set high goals,
but to meet them as well. It will keep employees happy and boost
the company’s bottom-line as well.