Company culture determines how employees work and interact with each other and their leaders. Work culture also influences the company’s image externally, shaping how the community perceives the company.
When looking for a job, it is important for employees to consider the company culture before deciding to join. A company culture that aligns with an individual’s values will determine the satisfaction level in the workplace.
So, what is company culture, and what are its benefits for employees and companies? Here is a more detailed explanation.
What is Company Culture?
Company culture consists of the values embraced, applied, and implemented within a company. Company culture also reflects the company’s identity.
Since the rise of startup industries in Indonesia, company culture has become a primary consideration for individuals looking to join. Company culture is like a reflection of the vision, mission, work environment, and how employees interact.
Often, company culture is felt even during the recruitment process. Therefore, company culture is essential not only internally but also externally. Internally, company culture is important in shaping a conducive working environment, while externally, it is crucial for forming the company’s image.
Benefits and Importance of Strong Company Culture
A strong company culture will encourage the creation of a conducive working environment. Here are several benefits and the importance of a strong company culture.
1. Improves Employee Performance
Employee performance tends to increase when a company implements a culture of openness, trust, and mutual respect. They are not afraid of feedback and are open to suggestions from both fellow employees and leaders.
Cultivating a culture of rewards, whether in the form of financial compensation or other benefits, also motivates employees to exert their best abilities at work.
2. Employee Happiness
In addition to improving performance, a good company culture also increases employee happiness. For example, when a company can provide reasonable working hours, allowing employees to achieve work-life balance.
Ultimately, this benefits the company by reducing turnover rates.
Characteristics of Good Company Culture
Every company has its own way of uniting its team through values applied in daily activities. A good company culture is consistent and authentic based on these values. Here are some aspects used to define and strengthen company culture:
1. Performance
Performance is the primary aspect when determining the characteristics of good company culture. Performance is a measure of employee productivity with variables of work quality compared to time. Employees focused on performance reflect a work culture that celebrates tasks and recognizes employee achievements.
2. Autonomy
Autonomy, in this context, means the company places complete trust in employees to carry out their work independently. This fosters employee confidence, allowing them to maximize their potential.
3. Passion
Passion is crucial to ensure job satisfaction and simultaneously motivate employees. Employees who work with passion feel a stronger connection to their workplace.
Components of Company Culture
Every company has a unique culture, but there are several elements that form this culture, namely:
1. Vision, Mission, and Values
Vision, mission, and values are the main objectives along with the methods and beliefs used to achieve those goals. These goals unite employees and create a sense of togetherness.
The values that can be applied vary depending on the company, ranging from integrity, diversity, service, innovation, collaborative, and accountable.
2. Relationship Between Leaders and Employees
The relationship between leaders and employees can be used as an indicator in company culture. For example, if the relationship is hierarchical, creating a distance, or if there are no boundaries as long as it concerns work.
Creating company culture also involves determining how the relationship between company management and employees should be. For example, establishing easy communication channels, prioritizing openness, or maintaining a traditional hierarchy.
3. Employee Acknowledgment
Employee acknowledgment or recognition is also one of the elements that shape company culture. Employees who are appreciated, given feedback, and recognized for their achievements tend to produce higher-quality work.
Recognition can take the form of positive words during work in progress or upon completion, or during regular monthly/quarterly/semester meetings.
4. Career Development
Every employee fundamentally expects to continue growing in their job. Therefore, it is important for companies to plan career development through training, certifications, or other programs that support employees in maximizing their skills and abilities.
5. Atmosphere and Aesthetics
The current office atmosphere and aesthetics are far different from the office settings of the past. Everything from spatial arrangements, interior design, dress codes, all determines a person’s mood at work. Therefore, atmosphere and aesthetics also indirectly define company culture.
For example, banks require uniforms and a neat appearance, and their offices have the same design everywhere. In contrast, startups have a more flexible working atmosphere and usually do not require uniforms.
Examples of Company Culture
After understanding what company culture is and its benefits, it is essential to understand examples. Here are several examples of company cultures commonly found:
1. Achievement-Oriented Culture
Achievement-oriented culture prioritizes competitive talent with skills. Companies with an achievement-oriented culture tend to seek employees who can surpass their work quality and possess innovative talents and motivation for success.
Usually, achievement-oriented culture companies promote career development and networking opportunities.
2. Collective Culture
Companies that emphasize collective values do not highlight hierarchy and focus more on supporting diversity among their employees regardless of their positions. All employees are encouraged to participate in all aspects.
The most important aspect of this culture is open communication, allowing every individual to contribute their best together.
3. Traditional Culture
Companies with a traditional culture adhere to conventional norms, such as strict hierarchy and professional etiquette. Traditional companies work based on data and prioritize work results.
They also usually have specific dress code standards, tend to be formal, and clearly separate work and personal life.
In the end, a good company culture can create a comfortable environment for all employees. A comfortable environment makes it easier for company management to manage and retain its employees.
To better understand employee management, you can download ASEAN’s Growth & Scale Talent Playbook here.
