The importance of creating company culture for a small business often gets overlooked.
Company culture is that elusive secret sauce that can make good companies great and great companies unstoppable. A company’s process for building culture is just as important as sales or operations, yet it often happens by default. To many business owners, culture is something that they’ll think about some other day, when they aren’t as busy putting out fires. It’s easy to think of culture as a bow on top of an already-great company: nice to look at, but far from essential.
Unfortunately for business owners, seeing culture that way positions them to miss a phenomenal opportunity.
With how important a strong, inclusive company culture is, we’re going to dive into what it is and how to get intentional and clear about the culture you want. We will also explore how company culture can be used as a tool to attract and retain top employees.
Company Culture: It’s Probably Not What You Think
One difficulty that comes with talking about culture is that the word means different things to different people.
So, what is culture, exactly? Is it going out for a beer at the end of a long week, free pizza lunch on Fridays, or a ping pong table? Or is it what it feels like to work here, as in “we care about our clients,” or “we have fun at the office”?
Here at TreMonte, we think about culture as that unwritten book that defines how people are expected to behave and what it feels like to be an employee at the company.
Company culture answers questions like these without them needing to be asked:
- “If I see my supervisor make a mistake, should I say something — and to whom?”
- “Should I go home at 4pm when my work is done, or should I stay until 7 like the rest of the team?”
- “When I am given a deadline, is it real — or did my supervisor pad the dates in case something slips?”
Every business has a culture. Whether or not it’s intentional is a different story.
One way to frame company culture is in terms of a brand. Just like you strive for customers or clients to have a positive experience with your business, the same goes for employees. Culture is what your employees feel when they come to work, which influences how they perform that work.
This is why culture has a deep impact on more aspects of the business than many business owners realize. This is why it’s crucial to build it with strategy and intention — rather than letting it run free until problems arise.
Signs and Hallmarks of Great Company Culture
A 2019 study from SHRM found that one in five Americans have left a job in the past five years due to bad company culture. The cost of that turnover is an estimated $223 billion. So, bad culture doesn’t just cause headaches — it costs money.
Good culture stems from a strong company foundation. This means having clear company values, a clear purpose for why the business exists, and real meaning behind the work being done. Remember that it is not enough to write out a five-point company manifesto and publish it in the break room or on the website. Any values that are not lived in the day-to-day interactions with your people are worth less than the paper they are printed on.
After building the foundation, it’s time to turn the focus to your employees. Rituals can be one great way to start building culture because they’re things that happen on a regular basis. Whether it be a team walk on Friday afternoons or a monthly team outing, rituals give employees something to look forward to.
Employee perks are another great way to create value for employees and reinforce what you value as a company. Now, the level of perks will vary depending on the size of your business and your level of financial comfort with finding them. Here are a few ideas to consider.
- Tuition reimbursement
- PTO for volunteer work
- Matching charitable donations
- ESG investment options in the 401(k) plan
- A monthly discretionary health stipend (for gym membership or home equipment)
Side note: When instituting new employee benefits, be sure to do your research and make them non-discriminatory. In most cases, when something is made available, it must be available to the entire class of employees.
Company culture doesn’t have to cost a lot of money. If you say that you value personal development and continuous improvement, back that with regular performance and coaching conversations for your staff. If you say that it’s important for your people to take time off to recharge and re-energize, don’t send them emails in the middle of a long weekend. And if you say that accountability is important, then share an occasional story of how you made a mistake, owned up to it, and fixed it.
Finally, remember that employees want to be valued and be recognized for their hard work. Providing the “why” behind decisions being made can make them feel included, like those decisions are made with them in mind. As a leader, it’s essential to be approachable and available for your employees.
Small Business Culture Beyond Employment Manuals
Building a strong company culture starts at the core and expands to the rest of the company. This means that new employee onboarding and training needs to reflect established values, and that old-timers may need a refresher every now and again.
Small businesses have an advantage over large corporations in preserving their authentic culture. Many small business owners that we work with still know and personally approve every new hire. However, regardless of size, there’s one thing that rings true about culture: it must be built with intention.
Businesses with strong company culture reap the rewards for years. Companies with bad culture feel the pain daily. Small business culture isn’t a gimmick, it’s a competitive advantage. Building, improving, and maintaining good company culture will help you attract better talent and allow you to keep the existing talent fulfilled and ready to show up every day. And what business owner doesn’t want that?
Also, if you enjoy the kinds of topics we tackle on this blog, you will probably love our new podcast. Recently in Episode 3, we had a guest who discussed the importance of Company Culture. You can listen to it on Spotify or Apple Podcasts or wherever you listen to podcasts by searching “Traversing Entrepreneurship”!
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