How To Build A Company Culture That Grows Your Business

Find out how building a fulfilling business culture could help with employee recruitment and retention.

You, your employees, and your customers all have a financial relationship with your small business. Your employees work at your business to earn a salary and benefits. Customers do business with you for the products and services you provide. But human beings are not solely driven by transactional relationships. 

Building a fulfilling business culture can help with employee recruitment, retention, and productivity. This is especially important in today’s healthy business climate, due to the demand for skilled workers. When good employees leave, it can affect your profitability. Some studies say that the average cost of turnover is equivalent to six to nine months’ salary for that employee, and the cost can be higher for skilled and senior-level positions. 

A strong and well-defined culture may also result in a better customer experience. Culture can help attract the right customers and keep them coming back, which may give you a leg up on the competition. Here are things to consider in order to develop a rewarding culture.

Build culture around your company’s mission and values
The mission, values, and culture of your small business are related, but they are not the same thing.  The mission is the purpose that guides your company, and values are the principles your company upholds. Culture is co-created by you and your employees by fulfilling the company’s mission in accordance with its values. A well-developed culture transforms your mission and values from words on a page to something you can see demonstrated day by day.

Perks and benefits are part of your culture
These days, many companies are adopting creative perks to help with recruitment and retention.  Popular perks include flexible scheduling, free or subsidized lunches, health and wellness programs, employee retreats, and compensating employees for volunteering at nonprofits. Here is a list of interesting and affordable perks that some companies are offering employees. 

The options that are right for your company may depend on the age of your workers. For instance, creating a more luxurious working environment with games, food, drinks, and fancy electronics may be attractive to young salaried workers who put in time after hours. But this may not be relevant to busy parents focused on getting home at a reasonable hour for their kids. As another example, some workers may be enthused about a generous benefits package, but others may not find this as valuable as other benefit options.

Once you’ve identified the most financially feasible perks and benefits, consider asking your employees for feedback on which are most appealing. Also keep in mind that your perks can help you strengthen aspects of your culture. If your business supports arts and culture, consider decorating the office with works by local artists. If your company supports nonprofits, consider providing paid days off for your workers to volunteer.

Culture can be essential to successful recruitment
Employees that fit in your company culture could be more likely to succeed. Consider communicating your culture during the recruitment process - from start to finish. As a first step, the job posting should have a description of the position’s role in building the company culture, along with the job requirements. Throughout the interview process, applicants should gain an understanding of your company’s culture and their potential place in it. Lastly, your evaluation of the candidate’s ability to be a good cultural fit should be a consideration when you decide to make an offer. 

The onboarding process is key to maintaining your culture
Many businesses these days expect employees to hit the ground running without much training. If your company does not have a formalized training process, you should still take the time to ensure that new hires understand the company mission and values thoroughly. They should also understand their role in fulfilling the company’s mission and developing its culture. This helps to minimize hiccups in teamwork and the customer experience as new hires come onboard.

A strong culture helps with retention
Losing excellent employees could be a setback for your business, but the problem is exacerbated in today’s tight employment market. Other businesses may be recruiting your employees, some offering significant raises and creative incentives. While most employees like raises and better benefits, your employees will be less tempted to change jobs if their current compensation is solid and the company culture is a good fit. Savvy workers know the “grass isn’t always greener on the other side.” The risk involved in leaving a fulfilling culture for an unknown may not be worth the reward of a modest pay raise. 

Culture attracts the customers you want 
When you have a strong culture that your employees believe in, it helps to attract and keep clientele that appreciate what you and your team are building. Customers that enjoy the business relationship they have with you are less likely to look elsewhere, even if another company is offering a similar product at a competitive rate. Great culture could be a competitive advantage.

Your culture will evolve over time
How do cultures change? Employees and clients come and go. Changes in the marketplace may prompt adjustments to your mission. Your own personal goals may also evolve, and that will impact the culture. As time goes on, seek feedback from your employees and regular customers, because you may not notice a change that is making a big impact on others. After all, culture is created by everyone on the team, not only by the owners. 

A rewarding culture can help grow revenue
Building and maintaining a productive business culture helps to make your company a place at which both you and your employees enjoy working. Culture helps you hire excellent recruits and retain your best employees. It keeps them motivated to perform at their best and also keeps clients. Therefore, it can help fulfill many of the conditions necessary for positive growth.
The information in this article has been obtained from sources deemed reliable; however, we do not guarantee its accuracy. This information is not intended to be legal, investment or tax advice and should not be relied upon. MB Financial Bank, N.A. and its affiliates do not provide legal or tax advice. You should review your particular circumstances with your legal and tax advisors.