The competition among startups is steep for top talent. An article on Entrepreneur India, Nathan Chan shares his idea about the company culture for startups. “The culture you establish should be different from the perks and benefits you offer as part of compensation”. The most important roles you have is hiring and retaining the very best employees. Thus, a positive company culture that makes smart people want to be part of your team, and offer good benefits and perks has to be considered. These factors differ from company to company but it’s important for recruiting and retaining top talent.
What is company culture?
According to the article “Culture is usually driven by a company’s list of core values set by the founder or founding team”. Company culture is the personality of a company. It defines the environment in which employees work. Company culture includes a variety of elements, including work environment, company mission, value, ethics, expectations, and goals.
Ten core values that each employee must be able to get behind to be a good cultural fit:
- Deliver WOW through service
- Embrace and drive change
- Create fun and a little weirdness
- Be adventurous, creative and open-minded
- Pursue growth and learning
- Build open and honest relationships with communication
- Build a positive team and family spirit
- Do more with less
- Be passionate and determined
- Be humble
As per the article “”Culture” outlines what’s expected of employees when it comes to innovation, customer service and human resources. While some companies offer great perks which creates negative company culture.
Example- working for a company that offers 6 weeks paid vacations, full health insurance coverage, lunches but if the company expects you to give your 60 hours a week and no flexibility with scheduling them then you are not motivated because you are in a negative corporate culture.
The founder of Zappos Hsieh said. “Our whole belief is that if you get the culture right, most of the other stuff like delivering great customer service or building a long-term enduring brand will just happen naturally on its own.
Building a culture vs. offering perks
The startups team, you should be thinking long & hard about the type of culture you want to establish. Most important is the culture you establish be different from the perks & benefits you offer as a part of compensation. Benefits include things like vacation days, 401K matching and health insurance. Perks might include catered lunches, free snacks complimentary laundry service.
The right culture improves productivity.
The study says that happy employees are 12 percent more productive at work. According to the study researchers at the University of Warwick, “We find that human happiness has large and positive causal effects on productivity. Positive emotions appear to invigorate human beings.”
The financial incentives, such as a raise or bonus, weren’t enough to make the employees who were studied, happier. No matter how much an overworked employee makes, he or she will still be less happy and less productive than one who works in a culture that values work/life balance and positivity.
This makes a lot of sense, as study after study has shown that overworked employees are often dealing with impaired sleep, increased stress, higher rates of Type 2 diabetes and an increased likelihood of heart disease. These health concerns lead to absenteeism (sick days), high turnover rate (quitting) and rising health insurance costs. And these things negatively impact a company’s bottom line.
On top of that, impaired sleep coupled with higher stress leads to decreased efficiency and an increased potential for employees to make costly mistakes on a daily basis.
A happy culture leads to better profits
Companies saw that, “If you wanted to keep your workers bright, healthy, productive, safe and efficient over a sustained stretch of time, you kept them to no more than 40 hours a week and eight hours a day.” By reducing hours, companies saw a decrease in worker disability, as well as fewer instances of damaged equipment, fewer lawsuits and happier shareholders.
Hopefully, you can see the importance of a positive corporate culture. And, getting started is as simple as writing out your core beliefs about how innovation, customer service and work/life balance should be approached by your employees regardless of seniority or role.