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8 Reasons Why Organizational Culture is Important

1. Increased employee engagement
Organizational culture is driven by purpose and clear expectations. This motivates and inspires employees to be
more engaged and interact with others. It also leads to high levels of workforce engagement, which drives productivity.

2. Decreased turnover
People who feel valued and respected are less likely to leave it. It’s essential to foster a winning organizational culture that supports their core values and mission statement. Less turnover saves companies time and money in the hiring process.

3. Elevated productivity
When employees have the resources and tools they need to succeed, it helps increase productivity and performance. Those who share similar backgrounds and skills may work more quickly together when tackling company projects.

4. Strong brand identity
A company’s organizational culture represents its public image and reputation. If it lacks organizational culture or has a weak image, customers may hesitate to do business. Businesses with a strong identity attract more business and job candidates.

5. Transformational power
Companies that recognize their employees’ efforts and celebrate team successes are more likely to notice a change in employees as they experience a sense of accomplishment.

6. Top performers
Companies that promote community in the workplace are more likely to retain their best employees. People leave negative work environments where they feel undermined and unappreciated. Strengthening the work of people within the company results in a positive employee experience.

7. Effective onboarding
Businesses with an organizational culture rely on effective onboarding practices to train new hires, including orientation, training and performance management programs which help new employees access the right resources and better transition into their roles. This promotes employee longevity and loyalty and reduces the amount of frustration some employees experience when they don’t have the information needed to do their job well.

8. Healthy team environment
Organizational culture helps improve workflows and guides the decision-making process. Team members who are informed and knowledgeable about certain processes are often more motivated to finish projects. Having a clear culture that unifies employees and promotes organized work structures helps people work together with purpose.

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