Why a Solid Company Culture can Help Double Your Revenue
What does company culture mean to you? As the Founder/CEO of a SMB do you have a clear understanding of what a good company culture is? Have you made the proponents and elements of your own business’ culture clear to all of your team members?
You might be thinking that these are secondary tasks in terms of relevance to your organization’s success – revenue-driven activities come first, then we can think about culture. But what you might not know is that having an established, strong company culture actually is a revenue-driven activity. How? Let’s explore.
What is Company Culture?
Company culture can be defined in a lot of different ways. But essentially, it boils down to the personality of the company. What missions, values, expectations, goals, standards, and more form the environment in which your whole team works?
At Flawless Inbound we THRIVE:
Transformation
Human & Humour
Results
Integrity
Vision
Experience
These 6 elements define the basis of our company culture. We know that to THRIVE is to prosper, to be successful, and to flourish. We’ve established a meaning and a feeling behind each word in the acrostic and we ensure that each of our team members not only understands, but also believes in each one.
The more we work on and emphasize our culture code, the more engaged our team is with each other and with the business as a whole. And that engagement is critical.
The Importance of Engaged Employees
So – if you have a culture code established, your employees become engaged with your business. What does that have to do with your revenue? Well – the truth of the matter is, there’s potentially 2.5x more revenue waiting for companies that have engaged employees as opposed to those who don’t. There’s a couple of reasons why that might be the case.
- Engaged Employees are Happier and Happier Employees Are More Productive
When your team is engaged with and involved in your company culture, they’re more likely to enjoy their time at work. And happy employees are 12% more productive than the average worker. We all know that the more productive your team is throughout the day, the more work is being done, and the more potential revenue you’re earning.
- Engaged Employees are Committed Employees
Chances are, if an employee is unengaged with your organization and with their job in general, they’re not going to be very committed to its success. And team members who aren’t actively involved in the success of your business probably aren’t the kind who are going to put extra effort into ensuring the quality of their work.
- Engaged Employees will Stick Around
Everyone knows that a high employee turnaround rate isn’t good for business. You don’t want to spend all your time onboarding and training employees, never mind the fact that constantly seeing changes to your team isn’t exactly confidence-inspiring for your customers.
While many people believe that high turnover has to do with the workforce itself, the truth is, the issue is more often reflective of poor company culture. In fact, organizations with a well-established company culture have a 14% turnover rate as opposed to the 48% turnover rate for those who don’t.
All things considered, company culture is more than just something you do to improve your internal processes after you’ve established your revenue-driving activities, it’s something you do to drive your revenue in the first place. In fact, solid company culture can lead to a 19% increase in operating income.
So why not sit down with your core team members and start to think about what makes up your company’s personality? With a little thought, initiative, and commitment, you, your team, and your business just might start to THRIVE.
Interested in joining a team where you can THRIVE? Check out our current job postings - we'd love to meet you!