Businesses seeking to obtain superior financial results don’t necessarily need to design new products or spend more on advertising. Instead, businesses should consider spending more resources on developing a more internal aspect of their operations: corporate culture. Firms, particularly in the early stages, need to develop a vision of what message they want to project. This message will be the way they are perceived in the public’s eye; it is this message, this culture, that must be echoed by every action by every employee from the top down. Positive corporate culture will not only lead to happy employees and customers, but it will also “help you deliver financial performance in very competitive industries” as argued by Darrell Kopke in his blogpost.
A 2016 Jobvite survey reports that 42% of millennials are likely to “job-hop” around every 1-3 years. This goes to show that the new workforce is open to, and in fact likely, to switch jobs in search of the best fit with their values. While customer retention is important, employee retention is just as important and is becoming more of a pressing issue. Businesses need to implement a corporate culture primarily based on: flexibility, professional development, and reputation as these are three priorities of today’s workforce. Notice how material benefits such as a workplace gym is not a priority for millennials; instead, workplace wellbeing is rated at the top. Employees value companionship, learning opportunities, and feeling appreciated, all of which are derived from a positive culture.
Companies like Zappos understand the priorities of today’s employees. The online retail giant is known for prioritizing its unique and colorful company culture. Zappos’ founder and CEO Tony Hsieh once said: “Our whole belief is that if you get the culture right, most of the other stuff like delivering great customer service or building a long-term enduring brand will just happen naturally on its own.” This statement continues to be true as Zappos boasts sales upwards of a billion dollars annually.
Another thing Zappos does very well is retaining their employees, which is a direct consequence of their emphasis on culture. Despite receiving well over 30,000 resumes every year, the company can only recruit 300 employees as a mere 13% of staff decide to leave the company on an annual basis. With an effective corporate culture, businesses will benefit from happy employees ultimately leading to high retention rates.
In order to attract skilled workers who will stay with a business, a strong company culture must permeate the organization. With a strong positive culture, businesses’ bottom lines will be improved as more customers will be attracted and retained, thanks to committed employees who work harder and do a better job.
Word Count: 446
Sources:
Kopke, D. (2014, June 07). Can Your Corporate Culture Make You Money? Retrieved from http://www.huffingtonpost.ca/darrell-kopke/corporate-culture_b_5107686.html
Pontefract, D. (2016, August 09). What Is Happening At Zappos? Retrieved from https://www.forbes.com/sites/danpontefract/2015/05/11/what-is-happening-at-zappos/#52ae9f8e4ed8
Kissmetrics Blog. (n.d.). Retrieved from https://blog.kissmetrics.com/zappos-art-of-culture/
Cameron, E. S. (2017, May 08). Proof That Positive Work Cultures Are More Productive. Retrieved from https://hbr.org/2015/12/proof-that-positive-work-cultures-are-more-productive
Harris, G. (2016, September 16). 4 Truths You Need to Know About Millennial Job Hopping. Retrieved from https://www.entrepreneur.com/article/281663
Coleman, J. (2014, August 07). Six Components of a Great Corporate Culture. Retrieved from https://hbr.org/2013/05/six-components-of-culture
Besner, G. (2015, June 19). Why Company Culture Is More Important Than Ever. Retrieved from https://www.entrepreneur.com/article/247522
Job Seeker Nation Study (2016). In Jobvite. Retrieved November 10, 2017, from https://www.jobvite.com/wpcontent/uploads/2016/03/Jobvite_Jobseeker_Nation_2016.pdf
Photos (in order they appear):
4 TIPS TO REMOVE THE ‘JOB HOPPER’ STIGMA FROM YOUR RESUME. (2016, November 16). Retrieved from http://www.rmsgworks.com/4-tips-remove-job-hopper-stigma-resume/
CareerBliss Culture Corner: Zappos Defines the Wow Factor at Work. (n.d.). Retrieved November 10, 2017, from https://www.careerbliss.com/blog/culture-profile-zappos-defines-the-wow-factor-at-work/
