April 24, 2017

Why Does Company Culture Matter? It’s all about Psychology.

Company culture is the personality of the organization. Beliefs, habits, language, norms, values, vision – it all matters.

It’s no secret that we take culture very seriously here at Uproar. For us, the way our employees work together is at the very helm of everything we do, and it’s one of the driving forces for every decision throughout all levels of the organization.

These elements are instilled early in a company’s life, but they can definitely change overtime. In fact, most businesses don’t focus so much on the cultural aspects in the early stages, because it requires the confidence in your company’s long-term survival. We started our PR agency from the ground up, which means it took time and patience to build the dynamic we have today. It’s not just us though; there are some deeply rooted ideas for why culture makes a big difference in the success of an organization.

Think of a company as an iceberg. More specifically, think of Edward Hall’s cultural iceberg model, which psychologists use to evaluate a company’s culture. While clients, media, visitors and friends may see the tip of the iceberg, the leaders really shape what’s under the surface. The bulk of a PR firm’s iceberg should come from deeply entrenched ideas and values that employees practice every day.

So, why is company culture important?

Performance. At the end of the day, our two main goals are maintaining a healthy dynamic in the office and getting results for our clients. Ask any given employer in 2017 about the importance of company culture, and the overwhelming response will be that it’s essential for the success of a business. What’s interesting, however, is that success does not necessarily lead to good culture, as a 2015 study found. Your business could be booming, but that most likely won’t keep your employees happy. If it does, it probably won’t last without the proper attention on your culture. For that reason, if you want a long-successful business, culture should always come first.

It can also help with retention. A Columbia University study shows that an organization with a rich culture sees a mere 13.9 percent turnover, while the chances of job turnover at a company with a poor culture is 48.4 percent. Not only does a good culture bring in talented individuals, but it allows them to stay. Which means that companies can spend less resources on searching for and training new hires.

Our agency has been named a Top Company Culture winner by Entrepreneur Magazine for the past two years, and we fully attribute our results-based success to the dynamic we have all established together. If it’s not already, consider making culture a top priority for your company, or find out ways you can be a part of ours.

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