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4 Reasons Why Corporate Culture is Important for Your Company

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User experience (UX) has become a popular trend in the world of digitalization: in basic terms, it focuses on the quality of a user’s experience to evaluate a product or service. A modern emphasis on corporate culture has essentially manifested the idea of UX in the professional world. As a society, we have begun to distinguish businesses based on their internal culture, with manufacturing companies being no exception.

As for the question of why that is, two University of Michigan scholars make the argument that certain traits of a company’s corporate culture can be used as predictors to a business’ overall performance or the effectiveness of its goods or services. Essentially, how your manufacturing firm treats its employees sends a message to the rest of the world about how you engage in business.

Particularly if you work within an especially competitive sector of manufacturing, a positive corporate culture can act as yet another differentiator for your business. Here are 4 reasons why corporate culture is so important for your company:

 

1. A positive corporate culture boosts retention rates.

A manufacturing firm that goes out of its way to invest in its corporate culture will become an end, rather than a means to an end, for employees. This means that if workers view the culture in their workplace as positive, they will be more likely to equate their present job as achieving success rather than simply a stepping stone to another employment opportunity.

When considering your current employees, corporate culture as a means to a better retention rate becomes more significant. Employees that are especially talented, have more perceived value, or may be more versatile when compared to others are more likely to be fulfilled by their position. In addition, a favorable corporate culture creates healthy competition amongst employees. Manufacturers will want to continue their advancement to ensure they have a future at the company, thus benefiting both the business and the individual.

Retention of current employees should be important to your manufacturing firm because it reduces the time and money your HR department may have to spend training new hires. Although an external party may bring a fresh perspective to your business operations, it is widely supported that internal promotions to leadership roles have a higher long-term success rate than external hires.

 

2. Corporate culture acts as another form of marketing.

The general assumption can be made that in 2018, a majority of American business owners understand how a digital media presence can positively impact a company’s bottom line. Corporate culture can have the same effect by increasing WOM communications about your business, establishing a local presence or furthering your competitive advantage.

Whether they do it consciously or not, businesses with a definitive corporate culture are perceived by consumers as more progressive and better-oriented towards the success of their business. An example from our end is Apple Rubber’s commitment to and education from the international manufacturing industry: we frequent trade shows all over the world to market our brand and learn from others in the industry.

All in all, corporate culture has become a topic of interest: how does a company treat those who are employed there? Does this company make any effort to establish a presence somewhere beyond their area of specialization? Being critical of your business in terms of its corporate culture can lead to more success down the road.

 

3. Good corporate culture means good business ethics.

A good corporate culture will foster good business ethics because employees will feel like there is more than “just a job” at stake when they come to work everyday. This may manifest itself in deference to those in leadership roles or a willingness to maintain an open communication between co-workers.

An article on corporate culture that went so far as to call it “the fingerprint” of a business in terms of uniqueness, listed off a clear mission and purpose. Less internal politics and a strong sense of identification are side effects of corporate culture.

Corporate culture can act as both internal and external success factors for your manufacturing firm, which is largely where its overall benefit lies. The definition of what makes up a “corporate culture” is broad and can be implemented at any company. Examples include philanthropic work, employee benefits, holiday celebrations, health and fitness programs and sponsored events, among other opportunities.

 

4. It gives us something to work for.

Another effect that an emphasis on corporate culture has created is the negative connotation that comes with “another day at the grindstone” type jobs. Employees are looking to be fulfilled not only by the work that they are doing, but the environment that they work in. The stakes for corporate culture are higher based on corporations on the national radar: Netflix rates its employees based on what they’ve accomplished rather than the hours they log, Google has nap pods and is dog-friendly.

Google and Netflix are not exactly the benchmark for a local manufacturing firm, but investing in corporate culture supports the idea that happier employees are more productive. Check out this throwback post from the Apple Rubber blog, detailing ways to make the manufacturing plant more enjoyable for employees through team bonding opportunities, ensuring employees’ safety and health, and celebrating special occasions.

Statistics from a study conducted in the UK support the idea that employees who are happy at work are 12% more productive. So go ahead and bring in a cake for your co-workers birthday: it’s likely to carry more of a benefit than you’d think.

 

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