Why is Company Culture So Important?
In past generations, the most important part of work was job security. Times of war and depression made people just grateful to have an income. Now fast forward to the last few decades to the time of Millennials, who have been raised in a time of financial prosperity and countless advances in technology. The focus has shifted; job security is not as big of a concern, so Millennials want more than to just pay the bills! They want to have a job they love, at a company with similar values as theirs, that offers awesome perks, is up to date in the world of technology, has a sense of community and purpose, and more.
In one word, Millennials want to work at a company with an amazing culture.
Well that seems like a lot to ask, why should you employers provide all that?
Because more than 1 in 3 American workers today are Millennials, making them the largest labor force as of 2015. Not only that, but Millennials have a lot to offer! They are adaptable, tech-savvy, creative, and open to change, all things that businesses need to be competitive in our ever-changing, technology-driven world.
Therefore, company culture is no longer something that’s just nice to have. It is now a need when it comes to attracting, retaining, and engaging great employees.
What elements of company culture do millennials value the most?
To list just a few, Millennials look for companies that offer:
- Flexibility: Adam Miller, president and CEO of Cornerstone OnDemand, wrote,”Today’s young job seekers live in a world where physical presence is optional: Banking, renting movies, hanging out with friends, going to school, ordering dinner have all transformed from a ‘place you go’ to a ‘thing you do’ from any connected device. Millennials view work in the same way; not to be measured by hours at a location, but by the output of what you do.” Flexibility in work schedule and location is a high priority to Millennials. This freedom helps employees achieve balance in life, especially when it comes to being involved in family events like sports games, recitals, etc.
- Professional development: A company that encourages learning is very appealing to Millennials. Working for a company that offers opportunities for advancement, assists in paying for or providing online courses, has a mentorship program, or does trainings that help employees acquire and develop skills, makes a job seem more like an investment and therefore more worth the time and commitment.
- Social responsibility efforts: People nowadays want to feel like they are contributing to the world through service, volunteering, corporate giving, sustainability, and more. Giving back and working for a company that gives back makes Millennials feel like they are making a difference, that their work has purpose, and that they are part of something important.
What are the benefits of having a great company culture?
Here are some of the many benefits to having a positive company culture:
- Reputation: When a company has a noteworthy culture, word gets out. Job seekers and customers hear positive things and think more highly of the company, improving its overall reputation. A great reputation leads to…
- Attracting more talent to your company: When potential employees hear how great a company’s culture is, it makes them want to work there. More qualified and talented people will apply for jobs at a company if it treats its employees well.
- Productivity: As fear and stress decrease in a healthy work environment, people’s overall health improves and morale is boosted. In turn, quality of work, efficiency, and productivity increases.
- Employee retention: Great culture makes work more enjoyable, makes employees feel appreciated and valued for their contributions, and increases morale and positive attitude toward the company. All of these pros lead to employees wanting to stay longer, decreasing turnover and improving retention.
- Increased business and overall revenue: Customers like companies that are known for their awesome culture and treating their employees well. Companies like Zappos, REI, Apple, Southwest Airlines, and more, get more overall attention and business because of their fabulous reputation not just on the customer side of doing things, but on the inside as well. Customers will often times choose to give their business to certain businesses just because they like the company. Learn more about the power of culture and culture marketing here.
While culture is becoming more of a priority to companies largely due to the Millennial generation, they aren’t the only ones that will appreciate a good culture at work. Your company culture should be designed and influenced by all employees. Make your culture the strongest it can be by getting input and feedback from everyone at your business.