Too many companies put their culture at the bottom of their priority list, when in reality, it could be the difference between mediocrity and great success. Not only does a good company culture make for happier employees (although that alone is reason to cultivate a rich company culture), but it positively affects their customers,prospective employees, and overall success as well. That being said, the opposite is just as true.
The negative impact of poor company culture on business
Negative press concerning a business’s culture and treatment of employees dramatically impacts a company’s overall reputation, which indirectly affects several areas of business. For example, Walmart has received heavy criticism for their authoritarian culture, not increasing their minimum wage, and gender discrimination. Because of this publicity relating to Walmart’s poor company culture, many people have chosen to boycott Walmart and Sam’s Club, decreasing revenue. Even if their prices are low, the impression customers get of the company through it’s culture has been enough to drive many away.
When customers and job seekers search for information about a company on Google and find terrible reviews from its employees written on Glassdoor, Indeed, or Yelp, their opinion of the company will be blemished by those inside perspectives. Customers dislike hearing about unfair treatment of employees, inequality, dishonesty, low compensation, and questionable ethics, and many are selective about where they shop based on those factors. Job seekers are also pushed away when finding an abundance of negative reviews written by employees. No one wants to work for a company that doesn’t treat its employees well or that does business in a way they don’t agree with. The collateral effects of bad company culture truly reach far and wide.
Top 5 impacts of bad company culture
- Poor recruiting results: Prospective employees won’t be interested in applying to work at a company where they don’t like the culture (especially the really talented ones that have multiple opportunities).
- Employee turnover: These days, people typically change jobs multiple times throughout their careers. With job change being so normal, a company with a poor culture is going to have an even harder time holding on to their employees. Startup consultant Adam Torkildson said, “When employees feel as though they aren’t in control of their own work environment, they’re less likely to produce and more likely to seek work elsewhere.” High turnover can be straining on the employees left behind and is a costly consequence of bad company culture.
- Disengaged employees: Employees that don’t feel appreciated, are subjected to poor working conditions, are asked to compromise their ethics, or that dislike the way things are run at their places of employment are not going to feel loyal to their employers. Disgruntled employees are often careless, have less confidence in their work, experience diminished morale, and might even be willing to actively fight back to get even for whatever injustice upset them.
- Lower productivity: Bad company culture often increases absenteeism. This combined with the effects of employees becoming disengaged leads to overall decreased productivity, costing the company money.
- Loss of customers: Like the Walmart boycotters, bad PR will lead to loss of current customers and less new customers. And of course, less customers = less revenue.
All of these consequences lead to one result: lack of company growth.
The solution? Let your Marketing team help
So what is the answer?
2. Then, market your awesome company culture!
People are getting tired of marketing for price; it’s exhausting being constantly bombarded by every business’s deals, bargains, sales, and offers. It’s simply not enough to draw in the masses anymore. Businesses now need to make themselves likeable as a company. How can you do this? Through Culture Marketing, or marketing your company culture.
In order to improve recruiting, enlarge customer base, and increase revenue, your marketing team needs to go beyond your company’s products and services and actually market the culture you have cultivated. Giving an inside look into what your company is really like can build a loyal fan base by getting customers to buy into your brand because they like who you are as a company. By using a unique advertising platform that highlights excellent company culture, customers and prospective employees become emotionally engaged and their desire to be your customer increases.
Companies need to be conscious of Culture Marketing to elevate the recruiting experience which leads indirectly yet purposefully to better overall success as a company. Recruiting and hiring should no longer be just about the HR team. Involve your marketers! Use social channels such as Twitter, Instagram, and Snap Chat to get your culture out there and elevate your company in the eyes of the public. This positive marketing impression will in turn elevate your company’s revenue and overall success.
To get a better picture of what an extremely successful company culture looks like and some ways to market company culture, continue reading here.