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How does work culture affect the performance of a company?

Published: Monday 21st December 2020

It is said that the missions and vision statement of an organization shapes its identity and that of its employees, but what about its work cultures. Considering reports showing an exceeding number of employees reporting their toxic work cultures, it only seemed appropriate forus to speak about the influence of a favourable work culture on the performance of a company.

Great benchmark values to incorporate in your work culture look like:

  • Dignity to all members
  • Team spirit as a whole
  • Transparency in operations
  • Discriminination-free environment
  • Encouraging the minorities to get involved
  • Equal opportunities to all
  • Closing gender boundaries and wage gaps among men and women
  • Inculcating values of integrity, accountability, and perseverance in all employees
  • Being uncompromising in the face of ethical dilemmas by supporting the right thing to do
  • Creating a safe workplace for women free from bias and harassment.

The effect of a positive work culture on an organization:  

While toxic work cultures arise from a sense of discrimination, over-competitiveness, aggression, entitlement and other negative attributes such as ignorant managers with closed mindsets, a positive workplace culture stems from the fact that the company is , in fact, a functional family unit.

Employees and employers spend 8-10 hours on an average per day at their workplace, which is between 33-40% of their time spent at the organization. This makes all the team members, colleagues and subordinates like a family, where all members tend to embody the spirit (or culture) that has been encouraged among all from the top to bottom levels of the organizational hierarchy.

Such an imprinting of corporate culture leaves an impact on the overall performance of the organization in several ways, few of which are mentioned below:  

  • Great company work culture results in constant innovation: A company culture that encourages the employees to constantly learn and improve upon themselves by supplying them with all the tools they need to do so will always present constant innovations in their operations and technologies. The creativity of the workforce, when nurtured rather than being stifled, can do wonders for the organization in terms of productivity and growth. This process also involves providing and taking constructive feedback to and from the employee.
  • Work culture brings out common values and goals of the company: If you have noticed how a synchronized swimming, football or cricket team moves in perfect harmony, picking each other’s cues without requiring too much communication, it is the result of a long period of bonding over the same values while working towards a common goal. Organizations are no different; it is observed that having a clear cut work culture puts the missions and vision in perspective to all the members where they begin to work as several integral parts of the same unit.  
  • Strong work culture in the company leads to higher retention rates: Employee turnover is one of the biggest results of a toxic work culture. It does not matter how much a job pays; at the end of the day, if an employee doesn’t feel like a part of something greater, is bullied or harassed and overworked, they will find a more fulfilling calling at an environment that treats them better. Having a positive work culture where all goals are reached while the employees are motivated and expressed gratitude over will ensure that they are loyal to the cause of your organization and stick with you for years.  
  • A company’s work culture grooms its employees in its own likeness: Employees represent your organization and inculcate great values and standards learnt from your corporate culture. By reflecting your ethic and integrity through your work culture, these values also are absorbed by the members of such organizations and they hold themselves up to great professional and personal standards, thereby always improving upon themselves and bringing their best to the organization.
  • Builds an environment of tolerance and support: When a company’s work culture is positively influential, it creates an environment of trust, safety, and tolerance among all the staff. This kind of acceptance creates an environment of diversity where all individuals feel welcomed no matter where they are from. The bond of a company’s employees greatly depends upon the work culture. If you encourage acceptance and healthy competition, employees will be supportive of each other’s professional and personal ambitions as well.

By encouraging a positive and growth mindset in the company culture, you will notice employees performing better with the direction provided.  The secret to a successful company is always the people who work in it, who are a by-product of effective work culture.  To read more about remote work efficiency and employee wellness policies by the HR, refer to our hirer blogs.

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