Company Culture: Why It Matters

Company culture influences how employees treat one another, the attitudes they share about their workplace and environment, subconscious assumptions made when making decisions, and the uniting values of an organisation. Company culture shapes an organisation in many ways, and finding a workplace with the right company culture for you can define your workplace experience.

To find the right company culture for you, you should first understand what company culture is and what defining traits separate one company culture from another. Explore what defines company culture and why company culture matters in the modern workplace.

What is company culture?

You can think of company culture as the set of beliefs, values, goals, and attitudes shared by an organisation. It’s sometimes called the "shared ethos" of a workplace or the "company personality.” Company culture guides the activity of an organisation and the way it expresses its goals through values and beliefs. It helps professionals take collective action within their businesses and align their goals with larger company objectives. 

Company culture often dictates a company’s social interactions, including what professionals consider appropriate, how employees interact, the behaviours employees discourage, and how employees respond to change within their structure. 

Company culture is widely defined through four attributes:

1. Company culture is shared amongst employees.

Company culture cannot exist within one person alone. By definition, company culture shows itself through collective actions, values, and assumptions made within the company. It often encourages and shapes company goals and objectives, along with employees' expectations.

2. Company culture is pervasive.

Company culture impacts an organisation at every level and is pervasive throughout the company structure. It exists in multiple facets within the organisation, including employees' behaviours, the company's environment, motivations behind actions, and unspoken assumptions. 

3. Company culture is enduring.

Company culture significantly shapes the hiring process, staff retention, and organisational structure. Employees are naturally inclined towards companies that align with their personal preferences and work styles, while employers actively seek individuals who will seamlessly integrate into their existing culture. As a result, company culture is not usually a temporary trend or passing phase; instead, it tends to be resistant to change. 

4. Company culture is implicit.

Company culture is a silent motivating force that works in the background. Therefore, it rarely has set boundaries or written rules. Employees can "feel" the cultural pressures and expectations and often respond instinctively. Company culture includes interactions, assumptions, and expectations.

Company culture styles

To organise and understand different company culture types, four subject matter experts at Harvard conducted a literature review to characterise different company cultures across organisations. They defined eight types. Within these eight types, you’ll find key differences in how people interact (independently or interdependently) and respond to change (prioritising flexibility or stability). Each style has aspects that may be advantageous for specific individuals or organisations and disadvantageous for others. The eight culture types are as follows [1]:

Caring

This work culture emphasises employee trust and fosters a workplace that focuses on relationship building. A vital component of this company culture is that employees support one another and act with integrity and sincerity. This type of environment is typically warm and welcoming. 

Purpose

A purpose-driven company culture focuses on a positive purpose, typically to better the world. These environments are generous and optimistic, and employees are motivated by a shared goal to make a positive impact and contribute to the greater good. Employees are often empowered by one another and united by their collective goals.

Learning

A learning culture prioritises expanding knowledge, skills, and curiosity. This environment encourages employees to think outside the box and never stop learning, and employees often love innovation and adventure.

Enjoyment

This type of workplace culture focuses on creating an enjoyable space. Employees are typically light-hearted, spontaneous, and encouraged to have a sense of humour. These environments usually have positive attitudes and high morale. 

Results

Results-oriented company cultures focus on their outcomes and driving productivity. Employee performance and results are carefully monitored, and top performance is a sought-after goal. Leaders in this environment reward employee productivity and push employees to maximise their performance capabilities.

Authority

This type of work environment is highly structured, and senior employees have high levels of control over the employees they manage. Dominance and decisiveness are pervasive themes, and workplaces are competitive. Employers desire boldness and confidence in this culture.

Safety

Safety culture is a top priority for companies with high-risk potential. These companies carefully plan each operation, prepare for all foreseeable events, and exercise caution in each step. Leaders in these organisations are averse to risk and tend to think logically. Employees move carefully and desire protection.

Order

This type of company culture includes traits of structure, respect, and shared norms. People in this type of workplace desire to fit in with their colleagues and share methods with their peers. Professionals in order cultures follow the rules carefully and stick with the status quo. Employees often use traditional procedures and techniques.

Why company culture matters

Company culture can enhance the workplace for employees and make a difference in whether employees engage within their organisation. Company culture may influence the following factors:

Employee engagement

Employee engagement involves the connection and commitment an employee has to their workplace. It impacts employee productivity, retention, and overall business outcomes. Employees of a strong company culture often feel more engaged with their organisation and colleagues. It helps employees feel their work is valuable and motivates them to go above and beyond to help the company succeed.

Employee retention

Employees who enjoy their work and feel connected to their workplace are more likely to stay in their position. Several factors in a company culture contribute to employee retention. For example, employees with opportunities to learn and grow within their role may seek promotions or expand elsewhere less frequently. When looking for a company culture that fits you, you should consider what opportunities will allow you to grow towards your goals. 

Workplace productivity

Company culture is directly related to workplace productivity. When employees can see the direct impacts of their work on achieving company goals and missions, they are more likely to continue pushing towards collective goals. This quality differentiates between an engaged employee and a satisfied employee. A satisfied employee is happy with their current position, but an engaged employee actively works to increase productivity and help the company meet milestones. 

How to find the right company culture for you

Seemingly similar roles at different companies can feel drastically different due to contrasts in company culture. When looking for the proper position for you, look beyond the job description and research intrinsic company values, cultural norms, mission statements, and perspectives from existing employees. 

1. Imagine your ideal work environment.

Are you interested in a flexible working environment or one with more structure? Do you want to socialise with your colleagues outside of work or keep your interactions in the workplace? Are you interested in an environment encouraging a sense of humour, or prefer a more serious workplace? Consider the eight types of workplace environments and pick out the ones that align best with your preferences.

Tip: When you are curious about a particular industry, job, or person, an informational interview can be a valuable tool for gaining insights not available through everyday research.

It is a conversation that can help inspire and make informed decisions about your career. Learn more about how to set up and conduct an informational interview.

2. Analyse the job description.

After determining key factors that define a company culture that’s right for you, look carefully at the job description. Which words did the employer use to describe the position? Is the description written casually, or is it serious? Is there mention of work-life balance or how the company treats time off? Pay attention to keywords used to define the job, and consider the underlying implication of these terms. 

3. Read social media pages and job review boards.

Look for perspectives from current and previous employees and the type of posts the organisation shares. Notice how companies respond to significant news events, whether they share team social events or any information demonstrating the company's values. Look for celebrations of employee success and indications that employers value and respect employees. Seeing yourself as part of the organisation through its social media and reviews may indicate you could be a good fit.

Next steps

Company culture is a dynamic force that can have a significant effect on employee engagement, retention, and productivity. Understanding different company cultures and identifying the one that aligns with your preferences is essential for a fulfilling and successful career.

Continue learning about company culture and leadership from top universities on Coursera. Build a team culture to maximise performance with Culture-Driven Team Building from the University of Pennsylvania, or learn to navigate the transition from start-up to scaleup with Building Culture in a Scale Up from IE Business School.