Employee retention is the ability of a company to keep its employees. It is, more specifically, the rate at which employees remain an employee versus when they decide to leave. Generally, your goal should be to have a high retention percentage, which indicates that your company keeps more of its employees than it loses. Many aspects play into this retention number, including recruitment and efficiency, employee morale, and more. Of course, more than many other factors, company culture matters when it comes to enabling employee retention. Read on to learn more about mastering employee retention and why company culture matters: 

What is Company Culture?

Before looking deeper into how company culture can improve employee retention, it’s helpful to understand more about company culture itself. This is the assimilation of a company’s behaviors, purposes, standards, attitudes, values, and beliefs. It can reflect both unwritten and written rules and is basically a company’s summation of what the employees and management think, say, and do together. It can also be built upon a company’s mission statement and expand from there. This goes beyond free snacks or innovative equipment. It’s about creating a sense of belonging, commitment, and passion, all of which add to the positive atmosphere in which to work. 

Why Company Culture Matters

Now that we have looked at what company culture is in terms of how it makes up a workplace atmosphere, we can look deeper into why it matters. These are some positive benefits of a good company culture when it comes to employee retention. The following are just a few to consider: 

It Draws in Talent

A great workplace with a positive company culture will act as a magnet, drawing potential talent into its doors. It offers options that entice jobseekers and promotes a job that will be more than a paycheck but a place where they can thrive, grow, and learn. This, in turn, means that employees who are already enjoying this positive environment will be more apt to stick around and not give up their spot. 

It Boosts Engagement

Positive company culture also boosts employee engagement, which further enhances employee retention. Satisfied and happy employees tend to deliver more quality work, do better in their performance reviews, and also form stronger relationships with colleagues. This will increase employee retention because an employee will tend to stay where they feel valued and appreciated. 

Improves Productivity

Another way that company culture improves employee retention is through increased productivity. It has been proven time and time again that engaged and happy employees will be more productive. This, in turn, boosts a company’s success by increasing its revenue and overall bottom line. In turn, this can increase the amount of resources a good business will then reinvest in its employees by improving offices and equipment, offering perks, and more. This will lift the entire company from the lowest employee to the most senior executive, all of which are enhanced by company culture. 

It Boosts Overall Retention

Employee retention is directly tied to company culture, with a good one boosting the retention percentage almost certainly. In fact, a good culture will foster a sense of loyalty among current employees. This makes them more likely to weather challenges and changes and embrace new opportunities. Conversely, many employees will choose to leave a company not necessarily because of the job itself, but due to the existing company culture. So, having a positive company culture is immensely important for retention. Sadly, many employees will leave jobs they otherwise enjoy simply because of a poor company culture. 

How to Improve Company Culture and Enhance Employee Retention

It is clear that a good company culture will enhance employee retention for a variety of reasons. Therefore, it’s wise to understand how to improve company culture overall and, in turn, boost employee retention: 

Find Employees Who Fit

This means that your company will seek employees or talent that best fits your company’s values and vision. This might involve branching out a bit in terms of what qualities or skills you are looking for in a potential employee. 

Integrate Culture in Everyday Activities

Your company culture will exude your values as a brand. This vision should be intertwined into the everyday happenings within an office. This can include teaching new employees about the culture, utilizing external messaging to reflect your company culture on social media, through marketing, and more. Base company initiatives on values. Use these values to guide management and evaluate performance. 

Foster Feedback, Communicate

Company culture can be enhanced with more feedback and communication. Leaving some employees in the dark in terms of what’s going on throughout the company isn’t a great way to foster a good company culture. Communicate, communicate, communicate, and welcome feedback to continue to hone your company culture. 

Evaluate Expectations

Another way to create a positive company culture is by considering employee’s expectations and keeping up with industry changes. As a modern business, you must adapt to market changes and trends to stay on the upward swing of the industry. This also includes considering employee expectations. After all, you will never be able to meet their expectations if you are not even aware of what they are looking for or can bring to the table in the workplace. Be flexible and willing to listen to employee ideas and embrace innovative strategies. 

Reward Good Employees for Doing a Job Well

Another way to boost your current company culture is to ensure that you reward good employees when they deserve a pat on the back. This can include telling them they did a great job, but more practically, it usually implies rewarding them financially in some way. This is a practical way to say thank you for going above and beyond and gives employees even more incentive to not only remain employed with your brand but also try to increase their productivity and success, since they know they will be rewarded and their efforts will not be in vain. 

Fix Issues And Keep Moving Forward

Lastly, address company culture that might not be where you want it to be. Let’s face it: even when you aim to improve the overall company culture, your company culture still might not be what you desire. Don’t get discouraged because this doesn’t mean you have failed, just that there is still room to improve. Double down on promoting a healthy company culture to help your brand thrive, especially when it comes to employee retention. Keep in mind that creating a healthy and positive company culture can go a long way in boosting your employee retention rate and also creating a great working environment.

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer who loves to share knowledge about general business, marketing, lifestyle, wellness, and financial tips. During her free time, she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.