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Glossary: HR & Recruiting Definitions

What is Company Culture?

Company culture refers to the morals, values, mission and views of a company. It also includes the internal behaviour of the company, as well as their management team and employees. The culture of a company is often outlined in their mission statement, which will help guide its team’s way of thinking.

The definition of company culture also contains the social interaction within an organization, as well as with customers and business partners. With the help of shared social values such as respect, trust and goodwill, the culture of a company helps to form a business or brand identity.

Why is company culture important?

Company culture is important as it will affect the way employees interact with each other, as well as external stakeholders. A company with an open communication culture, for example, will be comfortable asking each other for help, as well as providing constructive and respectful feedback.

It’s also important to have a good company culture, as it will greatly impact productivity. Having a company culture that encourages staff to try new things and strive towards a clear-set mission will ensure the team feel motivated, supported and comfortable in the workplace.

Good company culture will also bring in more attention when you have an open job position or are recruiting new business partners.

What company culture types are there within a business?

The way that employees experience company culture within a business is often based on how management interact and behave with the team. Another factor that can impact company culture is how highly the business values team building and the mental health of their staff. Some company culture examples include:

Positive company culture examples

  • A trust-based management style: If a manager trusts their team to make the right move and supports their decisions, this is an indicator of good workplace culture.
  • Good communication styles: Whether this is giving employees praise, or providing constructive feedback when a mistake is made, the way a team communicates with each other is a great insight into their culture.
  • A diverse team: If a team has employees from many backgrounds and cultures, this is a good indicator that it is a welcoming environment.
  • Team bonding activities: If a team regularly socialise with each other and management invests in team bonding, this is a good indicator that their company culture is warm and communication is good.

Negative company culture examples

  • Overworking: Employees regularly doing overtime, working through breaks or taking on extra shifts will indicate that the business is not one with a staff-valuing culture.
  • Micromanaging employees: If a boss is surveying their team’s every move or surveying, this quickly indicates a toxic workplace culture and lack of trust.
  • Strict hierarchy: A lack of respect to lower-level employees will quickly harbour mistrust and lack of communication towards teammates. 
  • Resistance to change: A company that is stuck in its own ways will quickly be left behind when new trends or changes emerge in its industry.

How do outsiders experience a company’s culture?

Outsiders such as customers, business partners or even potential applicants also experience a company’s culture when they interact with the company and its representatives. 

The way external stakeholders experience company culture includes the following:

Customer experience

  • Problem-solving: Whether it’s a business partner or a customer, if someone experiences a problem with your company, it’s best to handle it respectfully and swiftly.
  • Speed of response: This is especially important to applicants, as it will be their initial impressions of their time with the company.
  • Business reviews: Whether this is on Trustpilot, Glassdoor or Google reviews, outsiders will value what other people think of your business. Maintaining a respectful company culture will ensure that your business makes a good impression.

How can you improve your company culture?

If you think your company culture could use a boost, then don’t worry, check out our blog posts on:

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