The Role of Company Culture in Employee Engagement and Recruitment

Company culture is a priority for business leaders globally. But constant change since the pandemic has altered company values and the culture that these values represent. 

According to recent research by Quantum Workplace, 66% of executives believe that the importance of company culture is greater than its operational model or business strategies. Their Employee Engagement Trends 2023 report, Driving Employee Success, focuses on building a thriving and adaptable culture. While employees say their organizational culture has improved by 42% in the past two years, a much larger percentage (65%) say that their culture has changed since the pandemic. More than half of them (35%) say the change has been “drastic.” 

Ultimately, 70% of high-performing organizations agree that their company culture drives success. 

The report states that organizations that have changed or adapted their approach have done well. Importantly, they have managed to inspire and engage employees. Those who have tried sticking to their old work culture report that employees are disengaged and turnover has increased. 

We’re going to examine the impact of company culture on employee engagement and recruitment and explore effective strategies for cultivating a positive company culture. With the right culture, not only can organizations thrive, but employees will generally feel valued, motivated, and dedicated to their roles.

What is Company Culture?

Company culture, also known as organizational or corporate culture, is a dynamic entity that comprises the shared values, attitudes, standards, and beliefs that characterize a company. It's essentially the company's personality and it influences how the company's team members interact with each other, and how the company functions. 

At the same time, business leaders have different definitions of organizational culture. So do employees. The Quantum report identifies the three top aspects of workplace culture in the eyes of employees:

1. Values or mission statement — 54%
2. Recognition or celebrations — 53%
3. Company approach to their performance — 50%

The bottom three aspects they identify are rituals (37%), training and onboarding (33%), and the physical workplace (28%). 

At the end of the day, it’s about how we do things like communicate, make decisions, behave, celebrate, reward, and recognize. 

Understanding the Impact of Company Culture 

At its best, a good company culture can drive performance, increase employee engagement and retention, and enhance business results. This shows how incredibly important it is.

A strong culture fosters cohesiveness amongst team members. This can result in mutual respect, transparency, open and honest communication, a passionate commitment to success, and a strong sense of belonging and community. It makes the office environment more enjoyable and fulfilling, thereby improving the employee experience. In addition, a strong corporate culture can also influence customer service and the broader market perception of the company.

Different organizations may embody different types of cultures, such as adhocracy culture, clan culture, market culture, or hierarchy culture, based on their core values and beliefs.

Effect of Company Culture on Employee Engagement

One of the most profound ways the culture of a company impacts business is its success in engaging employees. But employee engagement is not just about employee happiness or satisfaction. Rather, it’s the emotional commitment an employee has to the organization and its goals, resulting in increased motivation and commitment to work. 

As Shane McFeely, lead researcher at Quantum Workplace discovered, 84% of employees agree that when their work culture is positive they’re more likely to be highly engaged. Only 22% didn’t agree. 

“Your organizational culture, at its heart, is how you get things done,” says McFeely. 

An organization with a healthy culture is often characterized by its engagement of employees. A positive company culture improves morale, creates a sense of belonging, and encourages employees to work at their best. Employees are more likely to trust their colleagues, know their roles and responsibilities, and believe in the company's mission and vision. 

A key emphasis in many case studies is that a strong work culture boosts engagement levels. According to Aaron Tucker, an organizational change executive: “Environments that support their employees in the right way will naturally foster employee engagement.” This showcases the power of good company culture in workplace engagement.

How Company Culture Influences Recruitment Process

The role of company culture is not limited only to employee retention and engagement. It has a powerful influence on the recruitment process as well. A strong, positive company culture attracts prospective employees as everyone prefers to work in a place where they feel valued, supported, and part of a community.

According to the 2022 Job Seeker Nation Report, company culture remains a critical employee value. It is one of the top reasons 30% of employees left jobs within 90 days of starting. Furthermore, a toxic work culture is a top reason for employees switching industries. In 2021, 29% of job seekers said they accepted job offers because of work culture and values. This dropped to 27% in 2022. 

Of course, new employees won’t know immediately if the work culture is a good fit. But it doesn’t take long to make an assessment. More than half (65%) said it takes less than a month, while 27% reckon it takes less than a week. Additionally, 55% of respondents said they would leave their jobs if the work culture wasn’t aligned to their values and expectations.

Prospective employees today are not just seeking a job with a good salary. They are looking for an organization where they can see themselves fitting in and contributing to a shared goal. A company with a strong and positive company culture is more likely to be attractive.

Strategies for Embedding Positive Culture in Organizations

There are many ways to cultivate a positive and engaging company culture.

Best Practices in Cultivating Strong Company Culture

Several proven practices can help to strengthen company culture:

• Use transparent decision-making processes
• Foster a culture of mutual respect
• Recognize and celebrate team and individual achievements
• Encourage innovation
• Establish clear communication channels
• Offer flexibility
• Value diversity  

Additionally, the ability to articulate what makes a company's culture unique, including its history, victories, and challenges, can differentiate it from its competitors and make it more attractive to potential employees. In the world of corporate culture, understanding and leveraging its key aspects can be a game-changer.

The Power of Culture in Employee Engagement and Recruitment

It's clear that a strong and healthy company culture is not just important, but crucial for an organization's success. It not only improves employee satisfaction and engagement, it also becomes a critical tool for attracting and retaining top-tier talent.

The secret to cultivating a good company culture lies in understanding the needs, values, and attributes of your organization, and bringing them to fruition through a shared vision, commitment, and effort. With consistency and dedication, a strong company culture can govern the overall health and performance of your business.