How Does Company Culture Affect Business Growth?

Of all the factors determining a business’s growth, culture might be the most overlooked. That’s a problem, since workplace culture—generally defined as a company’s mission, values, and vision—plays a crucial role in several key business functions, including:

• Product quality
• Level of customer service
• Employee recruitment and retention
• Social media marketing

Equally important is a company’s ability to grow its workplace culture and leverage the opportunities a healthy culture offers. In terms of spreading the word, a statement regarding mission, values, and vision should always be prominently displayed (on- and off-line) for both customers and employees alike. Make sure that statement appears on the company website, in your employee handbook, in selected marketing materials—even as part of the CEO or business owner’s email signature.

A quick look at how culture influences business growth may yield advantages you haven’t considered before:

Appeal to job candidates

Every successful business has some type of differentiator, that is, how it sets itself apart from competitors. A healthy company culture has the potential to clearly set a business apart, since culture is “a major factor today in attracting new talent, as … youth mostly prefer company culture over other factors,” notes Brigade Insight. “And a great talent pool obviously generates better results.”

Robust brand identity

Customers are typically drawn to those businesses with a strong brand identity. That’s because customers “make assumptions about businesses based on their interactions within and outside of the company,” notes Indeed. By contrast, if a business has, at best, a poorly-defined culture, “customers may hesitate to do business with anyone associated with the brand.”

A place where innovation thrives

A vigorous culture “encourages collaboration, which can result in new and exciting ideas,” says Corporate Job Bank. Fresh thinking and out-of-the-box suggestions are valued, especially as they relate to overall customer satisfaction. And these fresh ideas can stimulate future operational growth.

High levels of employee satisfaction and retention

 A strong business culture values its workforce and demonstrates that appreciation in many ways. And when employees feel appreciated, they are much more likely to stay with their employer, and to recommend their company to others.

If you want to strengthen your company culture with respect to employees, focus on actions that boost career growth and attract potential new hires. Such actions include:

• A comprehensive and welcoming employee on-boarding process
• Flexible work schedules
• Ongoing performance evaluations
• Opportunities for new training and development

Consider sponsoring surveys to find out how your team feels about where the business is now, and what improvements might help grow the business in the future. “Soliciting employee input gives management and owners a chance to view their organization from different perspectives,” notes Business News Daily. And when changes based on employee feedback are put into place, “everyone wins.”

So how well does this approach to business growth relate to your company? If you want to super-charge your culture, with the goal of enhancing future growth, here are two key action steps to consider:

• Re-examine your culture. Is there a clear link between your company’s stated mission and values, and your strategy for continued growth? If bureaucratic roadblocks get in the way of growth, look at ways to modify or eliminate those obstacles, so culture and growth are more closely aligned.

• Talk with veteran team members. Built-In recommends engaging your long-term employees to discuss “how the culture has evolved over the years.” These veteran employees will likely “provide valuable insight on what has changed and what they’d like to see change.”

Every business has its own unique culture. What sets the top players apart is how well they have incorporated that culture into everyday hiring practices, strategies for product or service innovation, and a robust brand identity.

Want to learn more about improving your company’s culture? Download our complimentary TAB Whitepaper, “Easy Ways to Improve Your Company Culture.”