Why Is Organizational Culture Important?

Organizational culture represents the personality and soul of a company. It defines the environment in which people work – the values, beliefs, behaviors, and underlying assumptions that drive every aspect of the organization’s activities. Culture is how people behave “when no one is looking.” Recent studies show that a positive work culture is more important than salary for much of today’s workforce, and it is a pivotal factor in the ability to recruit and retain employees. 

How to Build a Positive Workplace Culture

Recent research by TerconPartners’ identified four factors that contribute to an engaging and motivating workplace culture: 

  1. A Sense of Purpose – The employee can connect what they do with something bigger than themself 
  2. Autonomy – The employee has sufficient control over their work to impact the result produced 
  3. Feedback – The employee receives information about how well they are performing at their job and how they can improve if needed
  4. Social Support – The employee feels a sense of connection and “community” with colleagues and regularly receives support and coaching from company leaders. 

These four factors are associated with the broader concept of employee “well-being.” 

How Well-Being Links to Organizational Culture

Gallup’s 2022 State of the Global Workforce Report describes well-being as the new workplace imperative. Well-being is defined as judging life positively, thriving, focusing on the whole person, and/or belonging to a community. Gallup recommends that companies prioritize well-being as part of their brand’s promise in order to strengthen their recruitment strategies.

Recently, a sense of belonging has been recognized as an increasingly important element of overall well-being at work. Psychologists report that belonging is crucial to our satisfaction with life, happiness, mental and physical health, and even longevity. 

Social belonging is good for business! An article published in Harvard Business Review, titled “The Value of Belonging at Work,” found high levels of belonging were linked to a 56% improvement in job performance, a 50% drop in business risk, and a 70% reduction in sick days. 

The Importance of Leadership in Workplace Culture

Leaders have a powerful impact on organizational culture. They set the agenda, prioritize the work, and provide the vision for the future. Establishing and embedding a positive, motivating culture must begin at the senior leadership level with an aligned executive team that understands their role as “culture carriers.” 

Global leader Deloitte warns that in this highly-competitive business environment, companies must understand the importance of getting workplace culture right. “Most business leaders know the importance of organizational culture, but most don’t grasp what really defines their culture or how it connects to performance.” – Deloitte

TerconPartners’ 20-question Business Culture Audit helps companies identify and reinforce their cultural strengths and prioritize areas for improvement. Let us know if we can help define your company’s culture.