If you consider your organization as a living entity, organizational culture defines the character of the person. It is values and traits that define the company. Just like how our views, our traits change and improve over time, organizational culture is a continuous process where the organization evolves to understand what is good for the company and their employees.
Organizational culture is reflected in the leadership style, the company’s reaction to tough situations, its interaction with employees and customers etc. Culture can be called competitive, innovative, employee-first, research driven, innovative, based on what you prioritize in your organization.
Organizational culture is manifested in all the places and documents you deal with, for example; your employee contract, onboarding, rewards schemes, benefits, etc. Essentially, it is the way you treat your employees. If they feel comfortable and aligned with the company values, they perform better, eventually helping the company grow. It plays a crucial role in hiring, as it is an indicator of employee satisfaction and employee retention. According to a Glassdoor survey, 77 percent of workers look into the company’s culture before applying.
Further, according to a study on organizational culture and its correlation to business, employees are willing to move to a lower-paying job than stay at a place with toxic culture. It says that companies with a healthy culture report an average revenue growth of more than 15 percent in three years and are 2.5 times more likely to report an increase in stock prices.
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