Despite being intangible, a company’s culture doesn’t happen by accident. It’s built on shared beliefs, ideas, and the behaviours they inform. What these things amount to will ultimately decide; what kind of culture your company has and what it is perceived to have.
A positive, enriching culture is critical for any business, especially small businesses. A poor culture shared among few is felt more acutely. As a small business owner, it’s an aspect of your company that deserves constant engagement. Let’s unpack why culture is necessary for your small business success.
Culture, in business, what does this mean?
Simply put, it’s your company’s personality. It’s the workplace environment you create for your employees, a sum of your values, beliefs, and interactions with each other. Think workplace practices, think policies and communication. Think leadership.
A great workplace culture complements great company goals; combined, they create a business people want to work for. Are proud to work for. On the other hand, poor workplace culture undermines a potentially great business.
Why is culture so important for small businesses?
Because it’s powerful. Culture influences every aspect of a business, from senior management decisions to productivity to staff retention. Its ubiquity is the reason you must take it seriously.
And though it can be difficult to define, the benefits a positive culture brings are not. Some will be unique to your company and situation. Others are clear in companies everywhere. Let’s look at a few of the more common benefits.
1. Alignment
Imagine yourself as part of a climbing team about to scale Mt Everest. The task requires teamwork to ensure you reach the top together safely. At base camp, you all strike out on different routes, immediately compromising your collective goal.
Alignment is when everyone’s on the same page. It’s also when good business happens. Good culture allows both by promoting clear, consistent, and transparent communication between you and your team.
2. Engagement
With alignment comes engagement. An engaged workforce is one that’s invested in the work it’s doing. An engaged workforce is a happy workforce, and collective happiness will deliver countless benefits to your small business.
Good culture is a small business people are proud to work for. It’s that feeling of content on a Sunday evening, knowing you’ll wake to another day doing a job you love.
3. Retention
Happy workers hang around long-term. And a happy, stable team will only help your small business thrive more. Retention is a metric you should always monitor. Why? Because poor employee retention is a costly business practice. Consider how long it takes to recruit new staff. In some cases, it’s a quick, efficient process; you promoted someone in-house or were recommended a candidate through a friend.
For Australian small businesses, the average recruitment time is 30 to 50 days. That’s money, resources, and time better spent elsewhere, without even taking into account the time it takes for a new employee to settle. Good culture keeps your good people from leaving for better offers. It also helps attract good people, which is the flip side of retention.
Top priority: How to encourage the right culture for your small business
On paper, you’d be forgiven for thinking culture is something you can manufacture on the spot. Truth is, it’s tough to foster. An internal communications manager or a recent graduate from an online MBA program will understand the challenge you face as a small business owner. It’s a step-by-step journey. Here are a few ways to get your culture wheels moving in the right direction.
1. Know your company’s vision
Remind yourself why you started your small business. Even better, pitch your small business to yourself. Can you distil your company vision into a crisp, impactful sentence? If not, take a moment to think on it. The better you can define your company’s vision, the better you can convince others to help you realise it.
A strong company vision is a solid bed of soil to grow your company’s culture. It helps prevent a noxious culture from developing, which often happens when no critical thought is given to developing a culture from the start.
2. Listen, listen, listen
Culture is never the work of one. To foster a positive, inclusive culture that every employee cherishes, you need to listen to every employee. Give them every opportunity to help refine your company’s present and shape its future, and you’ll soon find a workplace that embraces innovation.
3. Promote employee growth
A key sign that your workplace culture is thriving? The paths for professional growth are clear and abundant. It brings us back to retention. If you can’t provide your employees with opportunities to advance within your company or, at least, develop new skills, you’ll struggle to keep them. A good culture helps a company progress, not regress.
Patience is a virtue, the old saying goes. A positive, inclusive culture doesn’t happen overnight; it takes time, mistakes, and a desire to always do better. If you’re prepared to put the work in, the benefits your small business can enjoy will be deep and long-lasting.
Final Words
Culture isn’t one-size-fits-all. You can’t pick it apart and re-design it for the next business. It’s less about analytics and more about instinct. Culture’s a feeling; you’ll know it inside when you get it right.
