Positive company culture is essential for a prosperous business. Both the executives and employees are aware of this and use it to make informed career choices. Companies with strong cultures are associated with increased productivity, better employee engagement, and higher profitability. We’ve compiled this list of indispensable company culture statistics to show you the pitfalls of poor workplace culture and the advantages of a healthy one. Keep on reading, if you wish to gain an upper hand and make your company a cultural haven.
Top Company Culture Statistics: Editor’s Choice
- Company culture is an important factor for 46% of job seekers.
- Married candidates value culture more than their single colleagues.
- 94% of entrepreneurs and 88% of job seekers say that a healthy culture at work is vital for success.
- 86% of job seekers avoid companies with a bad reputation.
- Millennials prioritize ‘people and culture fit’ above everything else.
- Team leaders have the highest impact on company culture.
- Having highly engaged employees can lead to a 202% increase in performance.
- 69% of employees would work harder if they received more recognition.
- Around 63% of US companies find it harder to retain than to hire workers.
- A culture that attracts high-caliber employees leads to a 33% revenue increase.
General Statistics on Company Culture
1. Only a third of US workers receive weekly recognition for their work.
Research shows that employees who don’t feel appreciated are twice as likely to quit their job in the next year. American work culture and values rest on appreciation and recognition of achievements. Employers therefore should give more praise to increase employee retention.
2. Company culture is an important factor for 46% of job seekers.
Almost half of the prospective employees evaluate potential employers by their company culture. 46% of job seekers said culture was one of the deciding factors in the application process, while 88% found it at least relatively important.
3. 15% of job seekers declined a job due to the company’s culture.
Corporate culture statistics show that being part of poor company culture is a deal-breaker for some employees. This means that companies could potentially miss out on hiring top talent.
4. Married candidates value culture more than their single colleagues.
Companies with great culture are more likely to attract married job seekers. 50% said they evaluate potential employers by their company culture. This compares to 41% of single job seekers.
5. Satisfied employees are 12% more productive than the average worker.
Unsurprisingly, happy people perform better in the workplace. Productivity and company culture statistics show that these employees work harder, have more creativity, and usually exceed expectations. Disheartened workers are 10% less productive. It is no wonder that the importance of company culture is reflected not only in employee satisfaction but in profits as well.
Statistics on Company Culture as a Competitive Advantage
6. 94% of entrepreneurs and 88% of job seekers say that healthy work culture is vital for success.
Company culture and values influence the bottom line. Corporations that cultivate a positive and strong workplace culture could see a 400% growth in revenue.
7. Receiving a ‘Best Place to Work’ award leads to a 0.75% increase in a company’s stock price.
Companies that value employees are more likely to be named ‘best place to work’. This often results in a 0.75% jump in the company’s stock price about 10 days later. While this increase seems rather small, it is still statistically significant and boosts a company’s market value.
8. 86% of job seekers avoid companies with a bad reputation.
Statistics about company culture confirm that reputation matters. 86% of prospective workers wouldn’t seek employment in a company with a bad public image. To make matters worse, 65% would probably leave their company if it received negative publicity in the news or social media because of negative company culture. Make sure to create a positive work environment to avoid these company culture problems.
9. 82% of surveyed people feel that culture is a competitive advantage.
Culture has become an important topic for modern entrepreneurs. Company culture and employee engagement statistics show that culture and success work hand in hand. Executives have realized that positive company culture improves people’s productivity, behavior, and engagement. They use this knowledge to shape their company’s culture and ensure stellar productivity.
10. Millennials prioritize ‘people and culture fit’ above everything else.
Millennials in the workplace statistics show that this generation represents 35% of the global workforce and for them, corporate culture is more important than anything else. Around 75% are primarily interested in the work environment and professional growth.
Company Culture and Leadership
11. Only 28% of executives understand their company’s culture.
Work culture statistics indicate that fewer than one-third of business leaders truly grasp their corporation’s culture. While they understand its importance, they fail to fathom the culture itself.
12. Leadership is valued most Down Under.
94% of Australians rated leadership as either important or very important. China and Japan come in second, with 91% of respondents placing great leadership above all other factors. The UK and France meanwhile score 82% and 81%, respectively.
13. Team leaders have the highest impact on company culture.
Statistics on company culture show that managers determine the quality of your company’s culture. Team leaders’ talent, skill, and knowledge can improve company culture and productivity exponentially. There is a whopping 70% difference in culture quality between companies with lousy and great team leaders.
14. 59% of millennials aren’t interested in diverse leaders.
A mere 7% of companies feel they’re capable of producing excellent millennial leaders. To ensure that company culture and diversity don’t suffer, corporations should overcome the challenges of combining leaders of all descriptions and backgrounds.
15. Culture attracts high-caliber employees and leads to a 33% revenue increase.
This is where the importance of company culture statistics shines the brightest. It shows that highly skilled managers contribute to a 27% (out of 33%) increase in revenue per employee.
Company Culture and Employee Engagement
16. Having highly engaged employees can lead to a 202% increase in performance.
Productive companies know the true value of an engaged employee. A study found that corporations with motivated workers outperform those with low employee engagement by 202%.
17. Actively disengaged employees can lead to a high turnover.
Employee engagement statistics show that only 15% of employees are actively engaged in their workplace. The lack of recognition doesn’t just lead to unhappiness and boredom, more importantly, it inhibits employee productivity and dedication to company goals. Active disengagement and the lack of recognition are the two primary reasons for leaving a company.
18. Around 63% of US companies find it harder to retain workers than to hire them.
Transparency and company culture statistics indicate that 71% of entrepreneurs agree that employee engagement is vital to their company’s success. One of the main challenges that businesses face in the neverending ‘war for talent’ is the retention of highly skilled employees. This results in US companies having to spend $2.9 million per day in search of replacement workers.
19. Latin America is leading in employee engagement with a whopping 74%.
Company culture during the pandemic has taken a positive shift. Companies seem to be focusing more on effective communication and employee well-being in these trying times. These changes were obviously the most prominent in Latin America.
20. 69% of employees would work harder if they received more recognition.
Corporate culture statistics show that employees with a strong emotional commitment to the company perform better. Engaged workers are more dedicated and will do their best to realize the company’s goals.
Frequently Asked Questions
What is company culture?
Company culture points to the attitudes and behaviors of the company and its employees. It is seen in the way people interact with each other, in their decision-making, and in the values they hold. The most prominent aspects of corporate culture are employee engagement, work environment, and leadership style.
Why is culture important in business?
The benefits of culture in business are multiple. Apart from providing higher revenue, culture statistics show it can also improve teamwork and cooperation between employees. Finally, happiness in the workplace and better employee engagement positively impact performance and employee wellbeing.
How does company culture affect turnover?
Companies with weak organizational culture will inevitably struggle with employee retention and high turnover rates (learn how to calculate your company’s attrition rate here). On the other hand, corporations with strong organizational culture and employee engagement will undoubtedly retain most, if not all, of their workers.
How can company culture be improved?
Be transparent! Transparency in company culture affects the whole corporation and cultivates highly engaged employees. Company culture statistics point to recognition as another important aspect, which will motivate your team. Focus on team-building activities to strengthen coworker relationships and improve engagement in the workplace.
How can company culture affect employees?
Engaged employees report higher satisfaction levels. In an ideal world, company culture and performance should work in tandem. Bad work culture meanwhile can have an adverse effect on employees. Disengaged workers feel out of place in their company and are more likely to look for greener pastures.
Can you measure company culture?
Company culture is difficult to quantify, however, certain aspects can be measured. Namely leadership, communication, wellness, environment, and company vision. These characteristics can show whether a business is in a good condition or not.
How can company culture impact recruiting?
Corporate culture is closely related to a company’s public image. Company culture metrics indicate that corporations with a positive public image have an easier time recruiting talent. The opposite is true for companies with a negative public image. A large majority of prospective employees will avoid these companies altogether.
How does company culture affect performance?
There are multiple ways in which company culture influences performance. A healthy corporate culture plays a key role in innovation and can serve as a marketing advantage. Company culture statistics meanwhile show that a stress-inducing and toxic corporate environment usually leads to poor employee wellbeing and low retention rates.
Can company culture change?
It absolutely can, but it requires time and dedication. Before taking any steps towards this goal, you should assess your current company culture. If it is lousy, you’ll probably need to go back to the drawing board. To improve good work culture, you’ll need to follow all the latest breakthroughs.
Why change company culture?
You need to ensure that your company culture strategy doesn’t contradict your business development plans. If it does, moving company culture in a different direction—there are plenty of different types of company culture—might be a wise choice. Bad corporate culture might be another reason for a change since it could have many adverse repercussions.
Without a doubt, company culture can be a valuable asset for both executives and their employees. Company culture statistics confirm how introducing a positive culture can skyrocket performance and improve employee well-being. At the same time, you need to make sure that your company’s culture doesn’t take a turn for the worse, since it could wreak havoc in your organization.
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How company culture increases employee engagement? ›
The stronger a company's culture, the better employees understand what is expected of them and what they're working toward. Engaged employees are more likely to stay happy, motivated, and committed to your company. Overall, an engaged employee is more: Connected to your company's mission.How important is company culture to employees statistics? ›
Company culture is an important factor for 46% of job seekers. Almost half of the prospective employees evaluate potential employers by their company culture. 46% of job seekers said culture was one of the deciding factors in the application process, while 88% found it at least relatively important.How can a company improve its culture 2022? ›
- Make Sure Leaders are On Board. ...
- Prioritize Employees' Wellbeing. ...
- Be Transparent. ...
- Provide Constructive and Timely Feedback. ...
- Provide Opportunities for Learning and Growth. ...
- Regularly Recognize Contributions and Positive Behavior. ...
- Regularly Revisit Your Company's Core Values.
According to Gallup's State of the Global Workplace, only 15 percent of employees are engaged in the workplace. This means that the majority of workforce around the world are either viewing their workplace negatively or only doing the bare minimum to make it through the day, with little to no emotional attachment.What are the 5 strategies for building a culture of employee engagement? ›
- Communication is key. ...
- Lookout for their wellbeing. ...
- Ask for employee feedback to make an informed and collective decision. ...
- Empower Employees. ...
- Acknowledge them.
Culture is a system of values, beliefs, and behaviors that shapes how actual work gets done—“the way things work around here.” In contrast, engagement is about employees' level of commitment to the organization and their work—“how people feel about the way things work around here.” Both are critical to business ...What are the 6 most important characteristics of culture? ›
- Culture is learned. It is not biological; we do not inherit it. ...
- Culture is shared. ...
- Culture is based on symbols. ...
- Culture is integrated. ...
- Culture is dynamic.
Company culture contributes to business success by having a positive influence that results in employees being more motivated, mindful, and satisfied with their workplace which makes them more likely to be present.What are employees looking for in 2022? ›
An increased sense of shared values and culture is taking shape, with a heightened focus on building trust and cohesion within teams, especially where employees interact remotely. Three quarters of employees surveyed by Manpower want to feel motivated and passionate about the work they do.How can employee engagement be improved in 2022? ›
- Build & Promote Your Company Culture. ...
- Create Time for Fun Activities. ...
- Offer Rewards & Perks. ...
- Welcome Employee Feedback. ...
- Involve Employees in Your Efforts. ...
- Recognize Employees for Work (& Beyond) ...
- Use an Employee Engagement Platform. ...
- Highlight Career Advancement.
How do I make my company stand out in 2022? ›
- Five Tips to Make Your Business Stand Out in a Competitive Market. by Julie Omeike. ...
- Map your Competitors. Knowing who your competitors are and what they do is the first step to achieving success in your business. ...
- Know your Target Audience well. ...
- Build on innovative Solutions. ...
- Add Value to the Brand. ...
- Offer a Unique Experience.
- Careful Hiring. ...
- Reinforce Your Mission. ...
- Talk About Your Values. ...
- Develop and Maintain Traditions. ...
- Recognize Employee Achievements and Contributions. ...
- Make Training Accessible. ...
- Open Communication. ...
- Connect Outside of Work.
Employee recognition is the number one driver of engagement. It's the best way to make employees feel valued and motivate them to give their all. However, the occasional thank you in the hallway or shoutout in a company meeting isn't enough to impact engagement.
Within these drivers, the 'Engaging for Success' report proposes four key drivers to employee engagement: Strategic Narrative (leadership), Engaging Leaders, Employee Voice and Integrity; and it is these drivers that businesses must focus their attention if they are to become a benchmark for success.Do 20% of employees do 80% of the work? ›
In the workplace, the Pareto principle means that 80% of the responsibility and work are shouldered by only 20% of your employees. Meaning, most of the work and effort are from the minority of your staff. They are the floor leaders, managers and other key thinkers in your organization.What are the three C's of employee engagement? ›
3Cs of employee engagement: Career, competence and care.What are the 5 elements of 3M culture? ›
- Mentorships. From executive, regional and functional mentoring to cause-based and informal, discover how 3M offers mentorship opportunities for every individual.
- Flexible Working. ...
- Innovation. ...
- Diversity and Inclusion. ...
- Employee Resource Networks. ...
- Community Engagement (US, English)
- Surveys. ...
- Program & Event KPIs (Key Performance Indicators) ...
- Anecdotes. ...
- HR/Workforce KPIs (Key Performance Indicators) ...
- Business KPIs. ...
- Tracking Behaviors. ...
- Kudos - Analytics and Insights.
Leadership culture is important to building organizational culture. Leadership culture is how leaders interact with one another and their team members. It's the way leaders operate, communicate, and make decisions. And it's about the everyday working environment: their behaviors, interactions, beliefs, and values.Why is engagement so important in an organization's culture? ›
Why is employee engagement so important? Employee engagement is so important to all organizations because having effective strategies in-place helps create a better work culture, reduce staff turnover, increase productivity, build better work and customer relationships, and impact company profits.
What are the 7 major elements of culture? ›
- Social Organization.
- Customs and Traditions.
- Arts and Literature.
- Forms of Government.
- Economic Systems.
THE SEVEN ELEMENTS OF CULTURE SOCIAL ORGANIZATION/SOCIETY CUSTOMS AND TRADITIONS LANGUAGE ARTS AND LITERATURE RELIGION GOVERNMENT ECONOMIC SYSTEMS.What are the 7 basic characteristics of culture? ›
- Based on Symbols.
Cultural norms can be absorbed and can lead to good or to bad consequences. For example, individuals observing negative behaviors may rationalize such negative conduct and practices. These negative behaviors may then escalate and spread to others, taking on institutional momentum.How does organizational culture affect leadership? ›
Culture affects leadership just as much and leadership affects culture. An organization's culture is taught or reinforced by leaders and adopted by followers. Abusive leadership can produce negative outcomes on both the individual and team level.What should employers focus on in 2022? ›
Issues like greater flexibility, permanent remote work, greater investments into mental health support and more focus on diversity and equality are top priorities for employees in 2022, according to Anu Karwa, vice president of people operations at video content creation platform, Socialive.What are the biggest job trends in 2022? ›
- Candidate-Centric Recruiting.
- Social Marketing is Big.
- Video Resumes Are on The Rise.
- The Need for Generalist Professionals.
- Candidates Want Employers With Similar Social Beliefs.
- Salaries Are Open for Discussion on Social Media.
Healthcare emerged as the leader in ranked importance by employers as the most important type of benefit that an organization can offer its workers followed by retirement and leave benefits, which ranked jointly at number two. Retirement benefits were at 55 percent in 2020/21, back up to 82 percent in 2022.What are the latest trends in employee engagement? ›
Therefore, one of the most significant employee engagement trends in 2022 is investing in staff training. Effective training, which aims to provide employees with important educational information, allows developing the valuable skills and abilities that are necessary for the successful growth of the company.How do you attract employees at 2022? ›
- 1 Offer Retention Bonuses.
- 2 Be Realistic About Requirements.
- 3 Target Workers With Gaps in Their Resume.
- 4 Offer Flexible Working Options.
- 5 Offer Remote Working.
- 6 Create Wellness Programs.
- 7 Contact the Professionals at Business Benefits Group.
What are employee engagement metrics? ›
What are employee engagement metrics? Employee engagement is the extent to which employees feel a passionate connection to the organization, are committed to their work, and put in the extra effort. Employee engagement metrics, thus, indirectly or directly measure how engaged your employees are.How do I make my company invincible? ›
To become an invincible company you must constantly reinvent yourself, compete on superior business models, and transcend industry boundaries. "To stay ahead of everybody else and beat disruption, you need to constantly reinvent yourself.What makes a company stand out from the rest? ›
Sales, customer support, and service
Teams that go above and beyond in their quest for customer satisfaction and happiness can help make a business stand out from the crowd as well. A company with a likable approach and friendly team has an immediate advantage.
Culture is maintained through attraction-selection-attrition, new employee onboarding, leadership, and organizational reward systems.What improves workplace culture? ›
Our workplace culture survey found that when leaders are mentors, actively advocate for employee development, and proactively connect their employees with meaningful opportunities, employees and leaders feel more successful, become more deeply connected to one another, and contribute to a stronger workplace culture.How do you rebuild a company's culture? ›
- Manage employee expectations. ...
- Facilitate a culture of flexibility. ...
- Strive for transparency and open communication. ...
- Support mental health and wellbeing. ...
- Take this opportunity to do things differently.
The 6 Universal Drivers of Employee Engagement.
|Low-Scoring Employers||High-Scoring Employers|
|Isolated and self-interested management||Servant mindset management|
|Devalue employees||Value employees|
|“Give 'em an inch, and they'll take a mile.”||“If we give, they will give back.”|
- Engaged Employees are Emotionally Committed to Their Organization. ...
- Engaged Employees Have an Excellent Attitude. ...
- Engaged Employees Go the Extra Mile. ...
- Engaged Employees are Collaborative. ...
- Engaged Employees are Responsible and Reliable.
Showing enthusiasm for your work, and conveying this passion to others, can help increase performance and employee engagement. This optimism can also promote collaborative leadership among workers by empowering them to step up to the plate and lead during tumultuous times.What are the 3 types of engagement levels? ›
What are the 3 levels of engagement? 20 years back, Gallup developed the employee engagement framework, consisting of three levels. Its purpose is to help you better track how committed and dedicated your employees are. The levels are: actively engaged, not engaged, and actively disengaged.
What are the key pillars of employee engagement? ›
The study lists four “key pillars” of employee engagement: Connection, meaning, impact and appreciation. Employees want to feel connected to their colleagues and managers, to feel their work has meaning and impact on the company, and to be appreciated for the work they do.What are the seven components of employee engagement? ›
- Strive for happy and content employees. ...
- Ask for feedback (and act on it) ...
- Tap into advocacy. ...
- Encourage mentoring. ...
- Find your champions. ...
- Reward initiative. ...
- Look after the wellbeing of employees. ...
- Shared vision.
The 80 20 rule, otherwise known as the Pareto Principle, is one of the most helpful concepts for life and time management. The Pareto Principle states that 20 percent of your activities will account for 80 percent of your results, however, it is not a hard and fast mathematical law. It is a concept.What is the 80/20 rule in leadership? ›
80% of ideas should come from your team; 20% should come from you. If you are appropriately delegating, empowering, enabling, coaching, and guiding your team, then 80% of the ideas you and your team implement or execute on should come from them, rather than you.What is the 80% rule in HR? ›
The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men.How does culture influence the working relations of employees in an organization? ›
An organization with a strong culture has common values and codes of conduct for its employees, which should help them accomplish their missions and goals. Work recognition and job satisfaction can be achieved when employees can complete the tasks assigned to them by the organization.How does organizational culture affect employee behavior? ›
The organizational culture can provide employees with a relaxed working environment, and harmonious interpersonal relationships in order to give full play to their ability. The culture allows employees to have a sense of mission and feel responsibility, and work towards the overall goal of the organization.How culture has an impact on leadership? ›
Culture Affecting Leadership
Whether it's through manipulation or complacency, negative cultures can create significant challenges for change. At the same time, positive leadership can overcome negative culture and turn the tide over time. A few encouraging results and positive experiences can go a long way.
An Employee Engagement Key Performance Indicator (KPI) is a tool to measure employee's engagement and analyze how well a business is meeting its goals. Firms apply KPI at various levels to assess their success. There are two types of KPI's: high-level and low-level.How do you measure the success of a company culture? ›
- Surveys. ...
- Program & Event KPIs (Key Performance Indicators) ...
- Anecdotes. ...
- HR/Workforce KPIs (Key Performance Indicators) ...
- Business KPIs. ...
- Tracking Behaviors. ...
- Kudos - Analytics and Insights.
What makes a strong company culture? ›
Strong workplace cultures generally emphasize open and effective communication above all else. Your organization ought to be a space in which people feel comfortable communicating ideas, thoughts, opinions, you name it. Fostering free-flowing, open communication is a must for any organization.What are the 4 types of organizational culture? ›
They identified 4 types of culture – clan culture, adhocracy culture, market culture, and hierarchy culture. You can take the Organizational Culture Assessment Instrument (OCAI) to assess your organization's culture in just 15 minutes and make strategic changes to foster an environment that helps your team flourish.What are the 5 factors of organizational culture? ›
- Leadership. Perhaps the single largest factor affecting organizational culture is leadership. ...
- The People You Hire. ...
- Your Work Environment. ...
- The Work You Do. ...
- Your Clients/Customers. ...
- A Human Approach.
- Clan Culture. Clan culture, also called a collaborative culture, is mainly focused on teamwork. ...
- Adhocracy Culture. Adhocracy culture is primarily focused on innovation and risk-taking. ...
- Market Culture. In a market culture, the bottom line is the main priority. ...
- Hierarchy Culture.