infographic: why your culture is crucial to business success

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provided by: octanner.com

A great company culture is no longer a nice-to-have—it’s become an essential ingredient for financial success. Why?

Recruiting – Company culture attracts (or repels) talent.

  • 82% of HR/hiring reps believe “culture is a potential competitive advantage” and are trying to change their company culture to attract talent

*Quantum Workplace, Recruiting and Onboarding Trends

  • Companies with a great culture are 54% more likely to have employees that are Promoters on the standard NPS scale

*O.C. Tanner Institute, Talent Magnets

Engagement – After years of futile attempts at compelling employees to engage, companies everywhere are learning it’s more important to create a culture employees want to engage with.

  • Companies with a great culture are 53% more likely to have highly engaged employees
  • Companies with great cultures are also 29% more likely to have employees innovating and performing great work

*O.C. Tanner Institute, Talent Magnets

Customer loyalty – Employee experience = customer experience. Think Southwest Airlines, REI, Squarespace, Adobe, etc.—companies that provide a vibrant culture and a positive employee experience are more likely to have loyal customers as well.

  • In a study of 95 auto dealerships around the country, locations with excellent company culture had higher customer satisfaction scores and profits 2 years later.

*https://www.wsj.com/articles/the-relationship-between-corporate-culture-and-performance-1456110320

Profits – Great cultures help people, teams, and companies grow.

  • Companies with great cultures are 27% more likely to have increased in revenue last year, and 25% more likely to have growth in team size in the last year

*O.C. Tanner Institute, Talent Magnets

Growth – Boards of Directors of major companies are now starting to take a deeper look at workplace culture.

  • A panel of independent directors stated “Oversight of corporate culture should be among the top governance imperatives for every board.” A strong culture offers “a powerful source of competitive advantage.’’

*Wall Street Journal, After Uber Boards Wake Up to Company Culture

  • Successful investor Warren Buffet only invests in companies with great cultures. His formula:
  • Culture +Leadership + Trust = Wealth

*Berkshire Hathaway, 2014 annual report

  • “Over the past 10 years, I have read and analyzed over 2,000 shareholder letters published by CEOs of over 150 publicly traded corporations….Grow by acquiring businesses that share these values and are led by trustworthy founders and entrepreneurs who love their businesses and treat employees fairly.” – Laura Rittenhouse, author of Investing Between the Lines: How to Make Smarter Decisions by Decoding CEO Communications

Culture can either enable or inhibit greatness. So make your workplace an engaging one by improving the six aspects of culture employees care about most: Purpose, Opportunity, Wellbeing, Success, Appreciation, and Leadership. We call these talent magnets because getting them right attracts the best and brightest to your company, engages them in your cause, and makes them want to stick around and contribute to your organization’s success.

To learn more about the talent magnets, click here.

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