The Importance of a Company’s Culture

After I learnt about the concept of a company’s culture, I felt that a company’s culture was costly to maintain. Thus, I thought that it should be treated as the least important thing that a company should consider. However, the case of Grasshopper changes my mind.

Grasshopper is a start-up telecom company. It once had 65 employees and it grew exponentially every year. However, many employees were a poor cultural fit. Ten years later, only a fraction of employees remain from the company’s start. Then, its owner decided to standardize its culture and hiring process to stabilize its staff. Today, the turnover has reduced from 25% to 10% since 2008.

I think that a company’s culture should be put at the first place when creating the company. It has two major benefits. First, with a clear company culture in mind, it is easier for the human resource department to hire the right person according to the culture. Second, a company’s culture informs employees about the core values of the company, which makes them strive for the same goal.

In conclusion, the benefits of the company’s culture clearly exceed its costs. A company’s culture unifies its employees and makes talents stay in the company, which will reduce its turnover costs and increase its efficiency.

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