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 agerage, 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

High-cost housing and down payment options in relocation

Flexibility remains essential for public sector workforces

Addressing financial uncertainty in international business

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

Administrator accountability: 5 questions to evaluate outsourcing risks

Easier onboarding: What to look for in an administrator

In a digital world, Liberty Puzzles embraces true connection

3 tips to maintain flexibility in supply chain management

Complying with changes in fund regulations

Artificial intelligence in finance: Defining the terms

Evaluating interest rate risk creating risk management strategy

Adjust collections to limit impact of USPS delivery changes

How to get started creating your business plan

Talent acquisition 101: Building a small business dream team

How to test new business ideas

Opening a business on a budget during COVID-19

How to redefine challenges with business collaboration

Empowering team members

10 tips on how to run a successful family business

5 steps for creating an employee recognition program

How to reward employees and teams who perform well

The role of ethics in the hiring process

8 ways to increase employee engagement

The costs of hiring a new employee

How to hire employees: Employee referral vs. external hiring

Give a prepaid rewards card for employee recognition

Gift cards can extend ROI into 2022

What you should know about licensing agreements

3 simple brand awareness tips for your business

5 principles for avoiding ethics pitfalls on social media

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

5 tips for helping employees raise ethics concerns

The growing importance of a strong corporate culture

Meet your business credit card support team

Business credit card 101

5 tips for managing your business cash flow

How to apply for a business credit card

How jumbo loans can help home buyers and your builder business

Prioritizing payroll during the COVID-19 pandemic

Break free from cash flow management constraints

Improve online presence your business

Use this one simple email marketing tip to increase your reach

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

How community gave life to lifestyle boutique Les Sol

How Shampoo’ed is transforming hair and inspiring entrepreneurs

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

How Al’s Breakfast is bringing people together

Celebrity Cake Studio’s two decades of growth and success

How a group fitness studio made the most of online workouts

How Wenonah Canoe is making a boom in business last

How a bar trivia company went digital during COVID-19

How to build a content team

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

4 questions you should ask about your custodian

Tactical Treasury: Fraud prevention is a never-ending task

The surprising truth about corporate cards

The benefits of payment digitization: Pushing for simplicity

Choosing your M&A escrow partner

Employee benefit plan management: Trustee vs. custodian

Webinar: Reviving mobility, what to expect

Webinar: DEI tips for transforming your mobility program

Overcoming the 3 key challenges of a lump sum relocation program

Why retail merchandise returns will be a differentiator in 2022

Omnichannel retail: 4 best practices for navigating the new normal

The client-focused mindset: How to network effectively

Is your restaurant Google-friendly?

Business risk management for owners of small companies

Protecting your business from fraud

Refining your search for an insurance custodian

Preparing for your custodian conversion

Business tips and advice for Black entrepreneurs

Webinar: AP automation for commercial real estate

Webinar: CSM corporation re-thinks AP

The future of financial leadership: More strategy, fewer spreadsheets

Enhancing liquidity management: 4 benefits of visibility

The client-focused mindset: Adapting to differing personality types

The client-focused mindset: What do clients expect?

Automated escheatment – learn how to prevent and resolve unclaimed property

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

Webinar: CRE technology trends

Webinar: AP automation—solve payment challenges with an invoice-to-pay solution

Start of disclosure content
XX-011 Equal Housing Lender
XX-014 Loan programs: credit + home
WI-031 Bank + USBI disclaimer