5 Reasons Company Culture Matters for Small Businesses
In our latest series, we covered a range of reasons to invest in company culture and how a toxic culture can impact the workforce. But as a small business owner, you may be wondering, does this apply?
The answer is a resounding yes! In fact, company culture is equally important, if not more so, among small business owners. Explore five reasons it matters and how to create your own unique small business culture with your workforce.
Company Culture and Small Business
In the small business world, the culture is like the personality of the organization. Company culture influences and shapes the way employees work together and collaborate as they move toward shared goals.
But when you’re responsible for so many other tasks, you may not know where to begin when it comes to creating and shaping the culture of the business. And since there is no specific way to define it, culture can create frustration among small business owners.
As you consider what you want your teams to look like and how they interact with one another, you’re already thinking about the culture. Defining what the organization stands for is another step. Making these small efforts puts together a cohesive and supportive culture that can build your brand reputation and attract top talent.
5 Reasons to Invest in Company Culture
If you’re still not sure how culture impacts your business overall, here are five key reasons to invest in a stronger and more supportive atmosphere.
Employee engagement is a must in any organization, but it’s particularly important in a small business setting. When your organization fosters a sense of belonging and loyalty, employees are more likely to feel connected to their work. As a result, motivation tends to go up, which means better engagement rates. And since engaged employees are 14 percent more productive, it’s a worthwhile aim. Plus, companies with higher engagement rates increase sales by 18 percent and profitability by 23 percent. Those numbers speak for themselves.
Better employee retention
Hiring is expensive, regardless of the industry. High employee turnover rates can destroy a small business budget, which is why retention is something worth investing in as a company owner. Your culture will influence whether people want to stick around, so take the time to create a positive atmosphere that supports the personal needs and professional aspirations of every member of the team.
Stronger brand image
Since people discuss just about everything online, company culture tends to come up on recruiting and employer review websites. A positive culture can help your organization build a stronger brand image, which in turn affects the overall reputation. Whether you’re aiming to secure investors, hire new team members, or attract customers, your brand image matters. Therefore, your culture matters.
Change is the name of the game when it comes to small business, and your employees have to be open to adapting. Poor adaptability can wreak havoc on the success of an organization that is shifting its goals and pivoting based on market shifts and demands. A positive culture can promote a willingness to adapt to change and encourage innovation, which will help the business remain resilient when facing challenges (as all small companies will at some point).
Improved customer loyalty
Smaller organizations simply don’t have the capital to generate significant awareness in their respective industries. But even without massive spending abilities, these businesses can still compete, and an incredible culture can play a role in that fact. When your employees are happy in their roles, it shows in the way they interact with one another and with customers.
A positive culture can manifest in the following actions among employees:
- Impressive follow-through and responsiveness to customer needs
- Consistently positive experiences
- A willingness to do whatever it takes to resolve a concern
- Friendly, warm interactions
The culture of your small business is like the glue holding it together. Invest in a supportive, collaborative, and innovative atmosphere and watch the benefits come rolling in.
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