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How Company Culture Impacts Employee Retention

Company culture is like the personality of a business. It impacts all of your marketing, hiring, and management decisions. If you hire an employee who does not fit in with your company culture, they are more likely to leave and go to a workplace where they do fit in.

Your company culture incorporates elements like your mission, values, objectives, ethics and work environment. Some companies have a traditional hierarchy. Other businesses prefer a fun culture or a team-oriented atmosphere. 

Your workers are more likely to enjoy their time at work if they actually fit in with your culture. Workers prefer being at companies that are aligned with their values and needs. They are also more likely to develop positive relationships with their co-workers if they fit in at the organisation.

If the worker doesn’t fit in with your culture, they are less likely to get along with their co-workers. They may become less productive and efficient. For all of these reasons, they are more likely to quit and go somewhere else. Whether you want better employee retention or more productive employees, a positive culture is extremely important for your business.


If you want a productive workplace and excellent retention, you need to have engaged employees. Employees are more engaged when they are a part of a positive workplace culture. In turn, having more engaged employees helps you create a better culture.

Employee engagement is like a feedback spiral. More engaged employees improve your culture, which in turn leads to better engagement still.

This feedback spiral can also work in reverse, so it is important to make sure your employees are engaged and enthusiastic about their doing their job each day. Employee engagement is all about the level of energy and commitment employees bring to the office. 

When your employees are more engaged, they are more productive and focused on their jobs. They are also more interested in retaining their jobs.

To improve engagement, you can try doing things like researching the best team building ideas. Wellness programs and social events can also help your employees connect with each other and feel appreciated. 

Promoting breaks, offering a positive environment, and improving job flexibility can also help your employees become more engaged.

Job Satisfaction

Company culture has a real effect on each individual employee at your organisation. If an employee feels included and important, they will be more motivated. When an employee feels like they are a part of a team, they feel satisfied with their job. If they do not feel motivated and part of a team, then they will start to feel unsatisfied.

Job satisfaction and company culture are closely connected to each other. Software platforms, such as Motivosity, that aim to increase employee engagement, can help to do just that. After reading this Motivosity review and logging in, you can actually track different metrics like job satisfaction and engagement with this platform.

You need a company culture that represents your organisation’s mission and values. Then, you need to make sure your on-the-ground activities reflect your lofty ideals. If your employees feel connected to your company culture, they will feel satisfied with their job. Any tools that can help with this process, can offer you an easier way to measure your efforts and goals. 


Communication also plays a humongous role in developing a positive company culture. People need more than just day-to-day chats and regular discussions. Getting feedback and providing managers with regular updates are also important goals.

When you communicate with your employees, you can provide them with direction. You can give them instant feedback on ways to improve as well as support in meeting deadlines. If an employee is starting to fall behind their deadline, it’s important to communicate this fact and give them extra help. 

You can improve your company culture by communicating better with your employees. This benefits your employees by giving them the feedback and support they need. In turn, it benefits the employer by making it more likely employees will meet deadlines and make feedback-related changes.

To improve your communication, start by having performance reviews. Depending on the project, you may want to set up weekly meetings to discuss future milestones and current progress. Software programs and online platforms can also help your team collaborate in real-time from around the world.

How to Improve Company Culture

Managers are not always blessed with a good company culture when they arrive at a new job. Sometimes, you have to build a company’s culture from scratch. To figure out the kind of culture you should create, start by looking at your organisation’s values, ethics, and mission. 

You have to know what your company believes in and wants to achieve before you can build a culture around these goals.

Then, start building programs around these goals. If your company values the environment, you may want to offer incentives for employees to bike to work or competitions for who logs the most steps in a single day. For competition-oriented cultures, you may want to create team competitions between different departments or groups.

You can boost employee loyalty by getting their input. Listen to what your employees have to say before adopting major changes. In addition to improving your company culture, this can also help you prevent major problems and find better ways of doing things.

Positive Culture Will Save You Money in the Long Run

Your company culture is important for the overall success of your business and team projects. It defines who you are as an organisation and what you want to accomplish. 

In addition to helping you improve your strategy and become more competitive as a business, your company culture is a key factor in employee retention. When your employees care about the organisation they work for, they are more likely to stay at your company. Higher retention means higher profits and happier workers. 


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