16 NOV, 2016

How Company Culture Can Impact Employee Productivity and Job Satisfaction

coworkers networking in large room

In new or developing businesses, corporate culture has much room to grow. This culture can serve to define the work ethic of the company as well as the overall satisfaction of the employees working there. As I mentioned recently in an article I wrote for Incentive Magazine, culture dictates the way everything gets done in an organization. If a company wants to meet customer, employee, and shareholder demands, culture can’t be left to chance.

Based on a compilation of surveys, research, and academic analysis, researchers came to an important conclusion: why we work determines how well we work. Two of the six main reasons they found for why people work are “play” and “purpose.” As described in How Company Culture Shapes Employee Motivation:

Play is when you are motivated by the work itself. You work because you enjoy it. Purpose is when the direct outcome of the work fits your identity. You work because you value the work’s impact.

This concept of why we work determining how well we work illustrates how a powerful corporate company culture helps create satisfied and productive employees.

Culture and Job Satisfaction

Recent research from Glassdoor affirms that the culture and values rating for companies has the biggest impact on employee satisfaction. By comparison, their compensation and benefits rating has the second smallest effect on overall satisfaction.

Additionally, companies recognized as providing the most enjoyable places to work consistently receive accolades from their employees about the company culture.

The researchers at Glassdoor acknowledge that the “culture and values rating probably represents a combination of factors that contribute to overall well-being such as company morale, employee recognition, and transparency within the organization.”

Culture and Productivity

When you consider that culture defines an organization’s operating style and standards for how to behave at work, it makes sense that these shared values help guide employee decisions, and in turn can make them more productive. According to research from Duke University’s Fuqua School of Business, more than 50% of executives said corporate culture “influences productivity, creativity, profitability, the value of a firm and growth rates.”

By building a strong corporate culture, your employees have a way to make decisions promptly (they know what’s expected), report any activity that doesn’t support the culture (they want to uphold the values), and produce great work (they are engaged).

Of course, an employee’s basic needs must be met before they can pay attention to culture—but when factors such as competitive compensation and a generous benefits package are fulfilled, employees will look to find an employer that provides a great culture where staff members are satisfied and productive. That’s not a simple thing to build, which is why a good corporate culture offers businesses a competitive advantage.

If you’re looking for ways to create a culture that motivates employees, this post outlines the elements of a fantastic company culture.


Share this insight: