Why Company Culture Is Important for Employees

21 Dec, 2022 | Read in 5 minutes

Studies show that employees perform better when they enjoy their work. Here are the benefits of a strong company culture and how to get one.


How to create a unique and engaging company culture for employees? Maybe this is the question a thousand people keep getting asked.

Building an engaging and positive culture is essential for long-term goals. An article in Forbes states that 95% of employees say that culture is more than compensation. Culture isn't just the “feel good” part of a convenience-filled business. Culture is the key to the company's growth.

Culture is the basis of how people work, communicate and make decisions. It's not just a set of powerful words but the fundamentals. When culture grows to be toxic, all elements of the company feel it. For example, productivity decreases, work errors, and company losses.

Employees not involved in the company tend to be demotivated, easily stressed, and less productive. Acclimated to Harvard Business Review, disengaged employees caused as much as 60% more errors. Disengagement also causes losses to the company, $450 and $550 billion per year. Therefore, all elements of the company must understand the corporate culture well.

Employees care about company culture

Several studies reveal that employees care about company culture. Furthermore, 56% of employees say company culture is more important than salary. This shows that the relationship is more than just “feel good” and motivation.

Workers who cannot adapt to the organisational culture are more likely to disengage. Conversely, if employees adjust well, they will contribute more. Here is clear evidence of the power of culture in a company:

After seeing these statistics, we can conclude that corporate culture influences employee satisfaction and productivity. The reason is that unhappy employees or stressed people tend to do minimal activities and are less productive. So fostering a great organisational culture not only impacts productivity but also sharpens the company's edge.

Why is company culture important?

To achieve the desired culture, every element of the company must have a clear and consistent understanding, from executives to employees. Apart from being responsible for their roles in the company, all employees must share responsibility for achieving the desired culture. Here are the reasons why companies need to maintain their culture.

1. Attract better talent

Surveys from Glassdoor revealed that 77% of people consider the company's ethos before applying for a job. Companies must clearly define their culture to attract the best talent. Cultural mismatch creates a feeling of discomfort in the company. An uncomfortable team may decide to leave, and the company loses top talent.

2. Engage employees

A study by iOpener Institute demonstrated that happy employees could complete tasks 80% of the time. In contrast, employees disengaged could only complete the job about 40% of the time. This suggests that the disengaged team may be performing a minimal role. Teams lack attachment and loyalty to the organisation. Even in the UK, only 8% of employees feel engaged at work.

In addition to improving company culture, here are some tips for increasing employee engagement:

  • Create a friendly and open work environment for all employees.
  • Involve employees in any strategy development, such as forming KPI for the company.
  • Hold a gathering event to connect employees.
  • Let employees take ownership of activities and events.

3. Retain staff

Glassdoor's Mission and Culture survey says 63% of respondents say that the company culture is one of the reasons they have survived. That is, the right company culture makes employees stick around. Unfortunately, the hard thing to do is create a sense of comfort in daily activities. In some cases, the bullying and immaturity of the environment make the team want to leave.

4. Employee happiness increases

Employee happiness and satisfaction is the key to increased productivity. A study by Warwick revealed that teams are 12% more productive when satisfied. This is a fundamental truth. People are always motivated to bring out their best every day when they are happy at work. They can collaborate and innovate better.

A dissatisfied team drains the organisation. They will tire faster and more often take leave than a happy team. This can create negative vibes in the workplace and affect the rest of the group.

5. Culture is a signal of success

Culture is a signal of success for the company. Deloitte reported that 94% of executives and 88% of employees believe company culture is essential for business success. Leaders and teams must believe that culture is the key to a company's performance.

How to make your organisational culture stick

No matter the industry, companies need to create an organisational culture to remain profitable. Southwest Airlines is creating a corporate culture that puts intentional employees first. Then, how do you make organisational culture stick?

1. Focus groups & surveys

Get started with an anonymous, company-wide survey. This survey aims to determine what needs to be improved in the corporate culture. Combine qualitative and quantitative questions in the survey. Make goals or benchmarks from the results of the survey.

You can also use the focus group discussion method. Create groups of employees of different ages and demographics (heterogeneous). After that, have an open discussion about the company culture.

2. Culture through brand image

A further step in making corporate culture stick is framing it in branding. Branding creates the long-term goal of culture, which is to get people to vote without bragging. Companies are different from others because of branding.

Harvard Business Review says that the company is not recognised only as a great place to work; the work itself becomes great. And the company hasn't established itself as a great employer; it lays the foundation for great customer relationships.

3. Consistency & Communication

Companies may invest time and money into creating culture but reap no commensurate rewards. Sometimes, executives, leaders, and teams perceive the corporate culture differently. Therefore, make sure to communicate the culture to all elements of the company.


Culture shapes how teams collaborate daily. It guides how they communicate and decide together. Employee satisfaction, productivity, and creativity hinge on this culture. Without it, a company loses its guiding values.

Similarly, a project management tool using VirtualSpace streamlines teamwork, even across distances. Integrating this tool into a company's culture enhances communication and decision-making. 


A strong culture fosters engagement and innovation. Remember, culture propels growth and embracing tools like VirtualSpace accelerates it.

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