Why Company Culture Matters More Than Money
Job seekers expect more than just dollars to entice them
In today’s job market, employees are not only looking for a job that pays well but also for a company culture that aligns with their values and beliefs.
“Culture is very important because people know that they have choices, and their choices go beyond the name of the company or the salary that they make. Their choices revolve around enrichment; their choices revolve around, Who am I learning from? How is my soul being fed? And they are willing to exchange money and location for feeling fulfilled.” Judy Jackson, Global Head of Culture and Engagement, WPP.
Excellent compensation and benefits are the second-most important employee value proposition, according to a 2021 LinkedIn survey of job seekers from all over the world.
Because of this change in priorities, many businesses now try to create a positive company culture that encourages employees to be engaged, productive, and loyal.
A positive company culture promotes employee engagement and loyalty, increasing retention rates. Employees who feel valued and appreciated are more likely to stay with a company for the long term, reducing turnover rates and the associated costs of recruitment and training.
According to a report by Gallup, disengaged employees are 37% more likely to leave their current employer, while engaged employees are 59% less likely to look for a new job. In addition, the Society for Human Resource Management (SHRM), found that turnover can cost companies up to 50–60% of an employee’s annual salary.
On the other hand, the Global Culture Report by O.C. Tanner found that companies with a positive workplace culture have a 65% higher rate of employee engagement and a 26% lower rate of employee turnover. This shows that companies can reduce turnover rates and the costs that come with them by investing in a positive workplace culture. They can also increase employee engagement and loyalty, which leads to a more productive and happy workforce.
Productivity and Innovation
A good company culture gives employees a sense of belonging, trust, and teamwork, which makes them more productive and creative. Companies with a strong and positive culture have been shown to have a 36% higher rate of innovation compared to those with a negative workplace culture, according to the Global Culture Report by O.C. Tanner.
Gallup found that engaged employees are 21% more productive than their unengaged counterparts. The Society for Human Resource Management (SHRM)found that companies with a strong culture had a 72% higher employee engagement rate and a 78% higher productivity rate than those with a weak culture.
When employees feel supported and motivated, they are more likely to take risks and develop new ideas, driving growth and innovation in the organisation. By investing in a positive workplace culture, companies can increase productivity and innovation and attract and retain top talent, leading to long-term success.
A positive company culture can be a powerful tool in attracting top talent and building a strong employer brand. In today’s job market, job seekers look beyond the salary and benefits package and evaluate a company’s culture, values, and mission statement. Glassdoor found 77% of adults in the United States would consider a company’s culture before applying for a job, and 56% of respondents said that company culture is more important than salary regarding job satisfaction.
It doesn’t just help attract the best, but also helps to keep the best. LinkedIn shared that a strong employer brand can reduce turnover rates by up to 28%.
A positive company culture can set a business apart from its competitors and attract top talent. In fact, according to a survey by Deloitte,86% of executives and 84% of employees believe that having a solid brand is essential for business success. By investing in a positive workplace culture, companies can attract top talent and retain their existing employees, leading to reduced turnover rates and long-term success.
Company culture matters more than money in today’s job market. Businesses prioritising company culture are better equipped to attract top talent, drive innovation, and achieve long-term success in their industry. A positive company culture promotes employee engagement, productivity, and loyalty, leading to higher retention rates and a strong employer brand.
By adopting the latest trends in company culture, businesses can create a positive work environment that fosters creativity, teamwork, and employee well-being.
With over 20 years of experience, we understand what employees want and how to support employers to find the best talent. Contact us today.