The growing importance of a strong corporate culture

January 16, 2019

A majority of Americans aren’t engaged at work. Here’s why creating a strong corporate culture can help boost your business’s bottom line.

Developing a strong company culture is more important than ever. Lacking one can lead to employee disengagement as well as turnover.

Gallup survey shows that 67% of U.S. workers say they're not engaged, or are actively disengaged, at work. This mindset causes U.S. companies to lose $450 to $500 billion annually.

 

The benefits of a strong corporate culture

Whether you rely on full-time employees or freelance workers, a strong culture can help your bottom line:

  • Cohesion: A strong corporate culture outlines the values, qualities and mission of an organization. This can create a consistent corporate identity for employees as well an image of the company for the outside world.
  • Positive brand identity: An organization’s brand identity can also benefit if a corporate culture is well known among customers. A culture that has earned the respect of both employees and customers could positively impact sales and brand loyalty.
  • Employee retention: A cohesive culture and positive brand identity can help attract and retain talented employees, then help retain them by fostering a sense of belonging.

 

The costs of losing employees

According to Korn Ferry the top reasons people look for a new job are:

  • 33% say they are bored or want a new challenge
  • 24% say the culture isn't a good fit
  • 21% lost their job or expect to lose it
  • 19% want a higher salary
  • 3% say they don't feel aligned with company politics
     

Deloitte and the Society for Human Resources Management report that the annual employee turnover rate is 19%. It takes companies, on average, 42 days to fill an open position. And the average cost to hire a new employee is $4,129. 

 

Building or improving corporate culture

  • Understand your organization’s purpose: Articulate your organization’s goals. Determine what core values, standards and behaviors exemplify your purpose, and communicate them to all employees. Make sure all business procedures and processes align with your culture and review them regularly. 
  • Get leadership on board: Make sure the organization’s leadership exemplifies your culture in their management style, behavior and communication. This sets the tone for the company and inspires employees. 
  • Spread the word: Communicate the importance of your company’s purpose. If you’re hiring, explain your values and evaluate a candidate’s character as well as his or her skill set. Making sure current and future employees are aligned with your mission can help reduce turnover. 
  • Take it public: Consider naming cultural ambassadors who exemplify your company's culture. Encourage them to participate in industry or community events to showcase your values outside of the organization. 
  • Keep it up: Incorporate your cultural values into your day-to-day. Recognize employees who embody your goals, and empower employees to provide feedback. Keep your mission front and center to help it evolve and grow.

Consider naming cultural ambassadors who exemplify your company’s culture. Encourage them to participate in industry or community events to showcase your values outside of the organization.

 

Start today

Taking the time to develop a strong culture within your organization can have a significant impact on cultivating loyalty and retaining talented employees who move your business forward.

A strong corporate culture can take time to build. But if you start now, and create an open dialogue with your employees, you can start figuring out what your company values might be.

 

Learn about specific strategies in the article 8 ways to increase employee engagement.

 

Learn about U.S. Bank

Related content

Refining your search for an insurance custodian

In a digital world, Liberty Puzzles embraces true connection

3 simple brand awareness tips for your business

How to get started creating your business plan

5 tips for being a great board member

Improve online presence your business

Why other lenders may be reaching out to your employees

5 tips to use your credit card wisely and steer clear of debt

Webinar: CRE technology trends

Business risk management for owners of small companies

Webinar: CSM corporation re-thinks AP

5 winning strategies for managing liquidity in volatile times

The surprising truth about corporate cards

Work flexibility crucial as municipalities return to office

Tapping into indirect compensation to recruit foreign talent

Overcoming the 3 key challenges of a lump sum relocation program

High-cost housing and down payment options in relocation

Preparing for your custodian conversion

4 questions you should ask about your custodian

Insource or outsource? 10 considerations

Easier onboarding: What to look for in an administrator

Trends in economics, immigration and mobility policy

Putting home ownership within reach for a diverse workforce

How jumbo loans can help home buyers and your builder business

How to apply for a business credit card

Prioritizing payroll during the COVID-19 pandemic

Meet your business credit card support team

7 uncommon recruiting strategies that you may not have tried yet

5 principles for avoiding ethics pitfalls on social media

5 tips for helping employees raise ethics concerns

The growing importance of a strong corporate culture

Gift cards can extend ROI into 2022

Omnichannel retail: 4 best practices for navigating the new normal

Is your restaurant Google-friendly?

How to reward employees and teams who perform well

The costs of hiring a new employee

8 ways to increase employee engagement

Business tips and advice for Black entrepreneurs

Talent acquisition 101: Building a small business dream team

10 tips on how to run a successful family business

Empowering team members

Why retail merchandise returns will be a differentiator in 2022

How a travel clothing retailer is staying true to its brand values

Use this one simple email marketing tip to increase your reach

Opening a business on a budget during COVID-19

How a small business owner is making the workplace work for women

How (and why) to get your business supplier diversity certification

Business credit card 101

Checklist: Increase lead generation with website optimization

The role of ethics in the hiring process

Choosing your M&A escrow partner

For today's relocating home buyers, time and money are everything

Crypto + Relo: Mobility industry impacts

How to test new business ideas

How to increase your savings

How a group fitness studio made the most of online workouts

Year-end financial checklist

How community gave life to lifestyle boutique Les Sol

The San Francisco bridal shop that’s been making memories for 30 years

How Wenonah Canoe is making a boom in business last

Complying with changes in fund regulations

Evaluating interest rate risk creating risk management strategy

High-yield bond issuance: 5 traits lawyers should look for in a service provider

3 tips to maintain flexibility in supply chain management

How to build a content team

Managing the impacts of appraisal gaps in a hot housing market

Travel for less: Smart (not cheap) ways to spend less on your next trip

Tips to overcome three common savings hurdles

Helpful tips for safe and smart charitable giving

Allowance basics for parents and kids

Administrator accountability: 5 questions to evaluate outsourcing risks

How Shampoo’ed is transforming hair and inspiring entrepreneurs

Addressing financial uncertainty in international business

Webinar: AP automation for commercial real estate

The future of financial leadership: More strategy, fewer spreadsheets

5 tips for managing your business cash flow

How to spot a credit repair scam

6 ways to spring clean your finances and save money year-round

How to cut mindless spending: real tips from real people

Real world advice: How parents are teaching their kids about money

How to stop living paycheck to paycheck post-pay increase

Practical money tips we've learned from our dads

Give a prepaid rewards card for employee recognition

How I did it: Joined a board of directors

Employee benefit plan management: trustee vs. custodian

Tips for navigating a medical hardship when you’re unable to work

5 unique ways to take your credit card benefits further

5 tips to use your credit card wisely and steer clear of debt

30-day adulting challenge: Financial wellness tasks to complete in a month

Celebrity Cake Studio’s two decades of growth and success

How Al’s Breakfast is bringing people together

What you should know about licensing agreements

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

5 steps for creating an employee recognition program

How to hire employees: Employee referral vs. external hiring

Break free from cash flow management constraints

Service provider due diligence and selection best practices

How a bar trivia company went digital during COVID-19

Evaluating interest rate risk creating risk management strategy

Disclosures

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.