A Complete Guide - What Is Organisation Culture And Why Is It Important

In the wake of the Great Reshuffle, employers must understand what organisational culture is and why it is important. This matter is especially pressing for Singaporean companies. According to the Society for Human Resource Management’s (SHRM) Global Culture Research Report, only 55% of Singaporean employees consider their company culture as “good” or “very good.” 

In fact, among the 12 countries included in the survey, Singapore has the lowest percentage of workers who rate their company culture positively. Thus, the fact that 51 per cent of Singaporean employees want to quit their jobs is no surprise. Organisational culture is a decisive factor regarding employee retention – 90 per cent of workers dismayed by their company culture are considering resignation. 

As a hirer, you must take organisational culture seriously. After all, even if your employees don’t resign, they may feel so disengaged they may be quiet quitting. However, there is still some good news for Singaporean companies. Based on the SHRM report, 77 per cent of workers say their company is “committed to improving workplace culture.” 

Organisational culture is a set of beliefs, values, behaviours, and practices shared within a company. It influences both the atmosphere and physical environment within which employees work. Various factors influence and define culture – the company mission and vision, the style of communication between managers and employees and among teams, and how management evaluates, recognises, and rewards performance. 

Focusing on your company culture can give your organisation a competitive advantage. Data from Quantum Workplace’s 2022 Organisational Research Report shows that “66 per cent of executives believe culture is more important than an organisation’s business strategy or operation model.”

After all, organisational culture directly impacts employee performance and engagement. A positive culture can inspire loyalty and motivate employees to do their best work. A toxic culture can foster resentment and a high turnover of talent. As mentioned earlier, organisational culture determines a company’s ability to attract and retain employees. Happy employees can encourage their peers to join your company, while disgruntled workers can badmouth your organisation. 

Company culture also affects your organisation’s reputation. It can be the pivotal aspect on whether your customers decide to patronise your business or turn to your competitors. For instance, a study by Microsoft Advertising shows that Gen Z prefers brands who commit to Diversity, Equity, and Inclusion (DEI). 

It’s also important to foster your ideal culture rather than letting it develop organically. Rivalries can grow if different departments are left to establish their own cultures. By contrast, a company culture consistent across departments and offices creates a sense of unity and camaraderie. 

A positive work environment motivates employees to deliver superior results. For instance, a culture of trust enables workers to work independently. It gives them the freedom to innovate and formulate creative solutions to problems. A culture of empathy inspires loyalty and a sense of belonging. 

When your workers start to care about the company, they naturally want to do their best. Conversely, if they feel disillusioned with the organisation, they may begin to do only the bare minimum. A culture of integrity makes employees feel psychologically safe and able to focus on their work. On the other hand, do gossip and office politics run rampant in your office? This atmosphere creates a toxic environment in which workers are more concerned with watching their backs and getting ahead than doing a good job. 

Management that communicates key performance indicators, goals, and objectives helps employees understand what is expected of them and improve their performance.

Adaptable A positive company culture can adjust according to the circumstances, without letting go of the organisation’s core values. For instance, many organisations that valued face time at the office had to switch to remote work during the pandemic. Today, many workers—especially tech talent—prefer hybrid work arrangements. 

Psychologically Safe A healthy work environment free from petty rivalries and politics allows workers to focus on the job at hand. It also makes employees feel safe to voice their concerns on work-related issues and share honest feedback. 

Progressive Organisations with a progressive culture value diversity and inclusivity. They hire talents and award promotions based solely on merit and take care to avoid discriminating based on age, gender, culture, or religion. 

Empathetic No one wants to work in an environment where their managers see them as robots. The best workplaces show concern for their employees’ welfare and safety, and compassion for their circumstances. 

Transparent When management is transparent about organisational goals, developments, and achievements, this fosters a sense of trust. Once employees understand the reasons for executive decisions, they are less likely to feel disgruntled or blindsided. If they know what the company goals are, then they can get a clear picture of their role in achieving those objectives. 

Evaluate your current organisational culture and employee engagement. First, define your company’s core values and what your ideal workplace culture would be. Then identify areas for improvement and create concrete plans to support a more positive work environment. For instance, you might decide that your managers need empathy training, or that you need to empower more women into leadership roles.

Be clear about your company culture during the hiring process. The culture helps applicants determine whether their values align with the company's. Then during the onboarding process, be clear about key performance indicators, team objectives, and company goals. It gives new hires a clear idea of what is expected of them and allows them to perform accordingly. 

Provide regular feedback and allow it to flow both ways. Don’t wait for performance evaluation season to roll around – normalise giving feedback every day. This way, workers know exactly how they’re doing and what they need to improve. At the same time, be open to receiving feedback as well. After all, if your employees are speaking up about work issues, it shows that they care about the company. 

Create a rewards and recognition programme. Recognition goes beyond offering “employee of the month” awards or rewarding teams with the highest sales. Motivate your employees by acknowledging their achievements immediately. For instance, you could verbally praise them for a job well done or send a company email congratulating them for landing a big contract. 

Don’t tolerate bad behaviour. Employees can become demotivated when they see their peers getting away with flouting the rules or slacking off. It’s even worse when managers play favourites. And needless to say, HR should never tolerate or overlook serious matters such as sexual harassment. 

Provide development opportunities. Create a culture in which everyone continually strives to learn and improve by helping your staff to upskill. You can send them to workshops and seminars, or let them take online courses. 

Foster peer relationships. Allow employees to chat with each other between tasks. If you have remote workers, create a “water cooler” thread where they can talk about random topics. Organise company outings and team-building activities. After all, when colleagues form a sense of camaraderie, they work better as a team. 

Be patient.  Change takes time. As you launch initiatives to create a positive work culture, don’t expect things to improve immediately. Stay committed to fostering a healthy work environment until your efforts bear fruit.

What is organisational culture and why is it important? Now that you know the answers to these questions, learn more about fostering a good company culture and attracting the best talent by visiting our Insights page. Then find the perfect person for the job on Talent Search.