From the HR People + Strategy Blog.
Company culture matters more now than ever. The average employee spends 40 percent of their waking hours at work. A toxic corporate culture can not only be soul destroying, but it can sink a company. On the other hand, a vibrant culture can help people thrive professionally, enjoy their job, and find meaning in their work. A growing body of research has shown that a good corporate culture can lead to better financial performance, more innovation, and greater customer satisfaction.
A recent survey of CEOs and CFOs found that 9 out of 10 believe that improving corporate culture would increase their company’s value, and nearly 80 percent ranked culture among the five most important factors driving their company’s valuation. Companies listed among the best places to work based on their corporate culture delivered nearly 20 percent higher returns to shareholders than comparable companies over a five-year period. And, according to Glassdoor data, company culture is among the top factors that job seekers consider as part of their job search.
But what exactly is “culture”? Culture has often been an arbitrary term measured on a binary good or bad scale, with no clear guidelines on what makes a culture “good” and “healthy” or “bad” and “toxic.”