NGL Attorneys | Commercial, Business and Property Law

We all know that the term “culture” is defined as the values, practices and beliefs shared by members who form a part of the same group, but what does “company culture” refer to? Company culture has the same definition as culture, however, it refers to the culture within a company or organisation specifically, and this culture is shared by the employees and management of the said company or organisation.

We cannot see or touch company culture, as it is not a physical thing, however, it is reflected in the actions, behaviours and approaches of the members of a company or organisation. In short, the company culture defines the rules of behaviour within the company or organisation.

The importance of company culture:

Company culture forms an integral part of any business, and it is unavoidable if you want to ensure that your employees’ satisfaction does not decrease, and if you want to employ people who will be the right fit for your business. If a business does not have a positive company culture, employees will not see any value in their work or positions at the company. This will result in employees leaving their positions.

The value of having a positive company culture:

Why exactly is positive company culture so important for your business? See below some of the benefits it holds for your company or organisation:

  1. Recruitment:
  2. When recruiting new employees, it’s very important to hire candidates who will fit in effortlessly with the company culture. The benefit of having a positive company culture is that you build a positive reputation for your company among current employees and new employees. When hiring candidates who fit into the company culture, you can rest assured that you have hired an employee that will not leave after a year or two but rather pursue their professional goals within the company.

  3. Loyalty:
  4. A positive company culture ensures that loyalty among employees increase, which means that employees are more likely to stay at their current job because they are treated fairly and truly enjoy their job.

  5. Employee satisfaction:
  6. Companies that have a positive culture, experience higher job satisfaction under their employees. Employers who invest in their employees will experience employees who are both happy and dedicated, leading to increased productivity and higher employee retention.

  7. Morale:
  8. A positive culture within the workplace leads to higher morale among the employees. Employees will be happier and work more efficiently when they work in a positive environment. Working in a negative environment leads to employees feeling unhappy, stressed and unproductive.

  9. Reduced stress:
  10. When employees work for companies that have a positive culture, they tend to feel less stressed, which does wonders for their work performance, as well as their overall health.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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