February 24, 2022 0 Comment

Significance of Work Culture for Organizations

Every organization, no matter how small, has its own values and behaviour patterns that employees are expected to adhere to. The term for this set of values and shared practices of an organization is corporate culture. It reflects the unique personality of the organization and conveys its core values, ethics, behaviours, and beliefs. Hence, there is a growing significance of corporate culture in modern organizations.

What is meant by Healthy Corporate Culture?

It would not be wrong to state that the corporate culture decides the social and psychological environment within an organization. It provides employees with appropriate guidelines about how they act, feel, and think within the workplace.

In a bad corporate culture, where employees act as individuals and work only for the sake of pay and benefits.

A healthy corporate culture motivates the employees to value their co-workers irrespective of their roles and responsibilities and promotes teamwork. Such a culture is based on collaboration. It puts the organizational growth and success above everything else.

This why a healthy corporate culture proves effective in enhancing business performance and driving engagement.

Why is Work Culture so Important for Organizations?

Corporate culture has come to play an important role in ensuring the growth and success of an organization. In fact, modern work culture has become more employee-centric and is key to attracting and retaining the best employees.

For example, employees today prefer to work for organizations with a culture based on growth and transparency. Hence, they avoid joining organizations that follow a traditional management system that offers little flexibility and growth opportunities.

Other important reasons that make a corporate culture so important are discussed as follows:

Significance of Corporate Culture

1. Helps to shape the identity of the organization

The organization culture makes it possible for employees and others to understand how the business operates internally and externally. It guides how employees interact and behave with one another as well as with customers, partners, suppliers and others.

In fact, the culture reverberates across all aspects and defines how the organization is perceived by employees and customers.

2. Deeply impacts workforce engagement

It is a well-known fact that engagement is directly correlated with business productivity. A highly engaged workforce is more committed to ensure organizational success and hence puts in best efforts for the same.

In this context, healthy corporate culture can go a long way in boosting employee engagement levels. For example, a culture that offers flexible working can ensure a better career-life balance for its employees. It paves the way for creating a highly engaged workforce that is more productive.

3. Boosts the professional development of employees

As mentioned before, healthy work culture is based on a deep sense of teamwork and coordination between coworkers. This, in turn, helps in enhancing the professional development of individual employees through healthy competition.

Employees feel motivated to learn new skills and improve their performance to make a positive contribution to organizational growth. In many cases, employees are willing to offer help and support to co-workers to learn new skills.

4. Helps in lowering turnover rates

Good corporate culture leads to happier employees, who in turn, feel reluctant to seek other job opportunities. When organizations value their employees for their contribution and achievements, it boosts employee motivation, morale, and their sense of belongingness.

They are thus able to retain valuable employees and cut back the costs associated with hiring and training new ones. For example, employees who enjoy good work-life balance and freedom of expression in their organization, may turn down lucrative job offers from organizations with poor corporate culture.

5. Can help transform employees into business advocates

Another reason why corporate culture is so significant is that it ensures that employees promote their organization wherever possible. When employees feel happy with the corporate culture they are likely to boast about it in their social circles.

In fact, employees often promote good aspects of their corporate culture on social media and contribute to a positive brand image of their organization.


For most professionals today, there is a growing significance of corporate culture as an important deciding factor for accepting job opportunities or staying on with an organization.

That is why organizations should work towards building an exceptional corporate culture that gives it a competitive edge and success.

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HiFives (https://www.hifives.in) is an employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. The platform enables supervisors and co-workers to nominate, recognize and reward employees using a points-based system. Budget management, jury-based evaluation and multi-level approval workflows are built into the platform. HiFives has social features such as a wall of fame and gamification features such as leaderboards, e-certificates and digital badges. It also has a global redemption system with country-specific e-gift card options. HiFives integrates with all leading HRMS systems, Office 365, Google Workspace, MS Teams, Slack and other popular tools used at the workplace. HiFives is used by many large enterprises, small businesses and startups across 25+ countries in the world, in many industries including manufacturing, retail, technology, financial services and media.