Rose Velazquez | Feb 24, 2023

The elements of organizational culture will vary across companies, but one fact remains constant: a healthy one is invaluable.

Defining Organizational Culture

Organizational culture consists of values, ideals, attitudes and goals that characterize an organization.

Building a strong corporate culture is no easy feat, but it comes with a number of perks: It helps recruiters entice elite candidates and retain top talent. Not only that, but it has been shown to improve levels of employee engagement, productivity and performance.

To give you a better sense of all the benefits that result from building a strong organizational culture, we take a deep dive into the topic below.


4 Benefits of Strong Organizational Culture

Organizational Culture Increases Employee Engagement

Strong corporate cultures give employees a cause to rally behind and purpose to do so passionately. That intrinsic motivation is what inspires employees to engage deeply with their work and form a connection with their peers, organization and their role.

Research bears this out. Employees who view their organization’s culture positively are 3.8 times more likely to be engaged at work, according to research by Quantum Workplace. And Gallup report revealed businesses whose employees are engaged see 23 percent higher profits compared to those whose workers are “miserable.”

Free Guide: Culture Code

Strategies to decode, maintain and improve company culture.


Organizational Culture Can Decrease Turnover

Creating a winning organizational culture — one that’s rooted in your mission and values — will cause your top talent to stick around longer.

A Cengage Group survey found 31 percent of employees who left their jobs said their primary reason for leaving was “the company’s mission no longer aligned with my values.” And a FlexJobs survey showed more than half of employees quit their jobs because of a toxic work culture

Approximately 23 percent of job seekers say a company’s values and culture are the top influences impacting whether they accept a job offer, according to Employ’s 2022 Job Seeker Nation Report. Roughly 55 percent also reported they would leave a new job if the organization’s culture didn’t match with their personal values and expectations.

The biggest takeaway: A weak or negative organizational culture will cause employees to look elsewhere for work, but a strong culture will keep them around.


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Strong Organizational Culture Makes Recruitment Easier

Your organizational culture isn’t something you can hide from job seekers. They’ll be able to get a sense of your organization almost immediately and use it to inform their decision. To avoid losing the interest of top candidates, prioritize creating an organizational culture that leaves a strong impression.

A strong candidate experience starts with your organizational culture.

Winning organizational cultures prioritize employees and their relationship to the company and its goals, which creates a positive employee experience. These individuals are likely to be engaged with and passionate about their work, two positive attributes that job seekers can pick up on. A strong corporate culture will entice equally motivated candidates that will add to your company’s culture and improve business.

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Healthy Organizational Cultures Are More Productive

Building a positive organizational culture that supports employees’ unique needs and work styles can lead to increased productivity and performance.  

Create a winning organizational culture and enticing employee perks will follow. These perks, be they workspaces or benefits packages, have an effect on your employees’ happiness and thus the engagement and productivity of your staff. Gallup’s research found businesses whose employees are more engaged see higher productivity — as much as 18 percent higher.

While any given organizational culture will evolve and shift as the organization grows, there are steps leadership teams can take to guide their corporate culture in the same direction as the company’s goals.

Before you get started, make sure you have the bandwidth to see your plan through. Winning cultures are not created overnight, and a bad organizational culture can do more harm than good. An organizational culture that does not align with the company’s core values or fulfill the C-suite’s promises will appear disingenuous, deter top candidates and drive away employees. 

It’s a big task, but dedicating the time and resources to create an organizational culture that’s true to who your team is and where you’re headed will attract the best people for the job and propel your organization in the right direction.

Free Guide: Culture Code

Strategies to decode, maintain and improve company culture.

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