A positive corporate culture can enhance employee morale, productivity, and retention, while also promoting a company’s values and goals.
Corporate culture has emerged as a critical aspect of organisational success. Companies increasingly recognise the importance of fostering a unique culture that aligns with their values, goals, and identity.
This article delves into establishing a corporate culture and offers insights on how to set up its building blocks. Additionally, some examples of strong corporate culture in Australia.
Corporate Culture 101
Corporate culture is generally defined as a set of beliefs and behaviours that a company defines itself on and governs its performance. A look at a company’s workplace will give clues to how its culture functions, through factors such as operating hours, the dress code, interactions between employees and the management, and the business environment of the country it operates in.
Australians’ propensity for being laid-back can be seen in many Aussie firms, but these may underline the value of being on their best behaviour at work and producing quality results.
Characteristics
- Vision – The vision defines what a company sets out to be in the business world. Some outfits have “Vision and Mission” as part of its main corporate statement.
- Values – Values pertain to the thinking and ideology the company subscribes to achieve its goals.
- Practices – Practices will cover the company’s main operational thrust and the methods it will achieve to get there
- Employees – In the corporate culture context, the composition and skillset of the employees will add more substance to the company’s overall business goals, plus define other factors such as career development and education, innovation, and quality of the leadership tier.
- Historical narrative – A historical narrative can show the company’s origins and show investors and prospect employees or partners the journey it has been to achieve what they are today.
Types of Corporate Culture
- Clan – Clan-based corporate cultures are centred on teamwork and collaboration. Management will mentor the subordinates but underline the importance of everybody sharing their weight of the labour. Clan cultures can also change their performance tempo as circumstances permit.
- Adhocracy – Taking off the term ad hoc, adhocracies create a workplace where the entire staff becomes risk-takers by encouraging agile thinking. Employees will be encouraged to be more proactive in pursuing new ideas for the business.
- Market – Market culture aims to meet specific targets and the bottom line, driven by competition and the management wants business results. To get there, employees are encouraged to work hard and finish all their tasks to drive the company forward in terms of growth, although some may say that such an environment creates enthusiasm at the price of stress.
- Hierarchy – Hierarchy corporate culture is traditional in the sense that companies function according to a chain of command, with a network of employees below, a small number of department managers in the middle, until a select few of executives and the CEO/MD at the top. While such a corporate culture may seem rigid, it allows employees to know their roles in the company and who they report to. Japanese firms, for example, take it as an affront and a termination offence if, for example, an employee in Company X takes their concerns to the operations manager or COO when their own department head should hear everything first.
The Importance of a Strong Corporate Culture
Attracting and Retaining Talent
In the competitive Australian job market, attracting and retaining top talent is a significant challenge for organisations. A well-defined corporate culture can act as a powerful magnet for prospective employees who share similar values and aspirations.
When employees resonate with a company’s culture, they are more likely to remain engaged and committed to their work, reducing turnover rates and associated costs.
Enhancing Workplace Relations
A strong culture fosters a positive work environment where employees feel valued and motivated, and lead to improved workplace relations.
When employees understand and embrace the company’s values and culture, there’s a lower risk of conflict, and teamwork is promoted. As a result, organisations can achieve higher levels of productivity and collaboration.
Establishing Identity and Branding
Corporate culture is closely linked to a company’s identity and branding. It represents the essence of what the company stands for and how it operates.
A well-crafted corporate culture can differentiate a company from its competitors and create a unique selling proposition. It influences not only how employees perceive the organisation but also how customers and partners view it.
Building Blocks of Corporate Culture
To establish a corporate culture that aligns with your company’s vision and values, you need to lay a strong foundation, with the following as some key elements.
Values and Mission
Begin by defining the core values and mission of your company. These should reflect the beliefs and principles that guide your organisation’s actions. Encourage input from employees to ensure that these values resonate with everyone in the organisation.
Lead by Example
Business operators should embody the values and behaviours expected of employees. Leading by example sets the tone for the entire organisation and reinforces the desired culture.
Transparently
Open and honest communication is crucial for building a strong corporate culture. Regularly communicate your company’s values, goals, and expectations to employees. Encourage feedback and create channels for employees to express their ideas and concerns.
Inclusivity and Diversity
A diverse and inclusive workplace is a fundamental aspect of a robust corporate culture. Encourage diversity in hiring and promote inclusivity by providing equal opportunities for all employees, regardless of their backgrounds.
Recognise and Reward
Recognising and rewarding employees who exemplify the desired culture reinforces its importance. Create recognition programmes that acknowledge employees who go above and beyond in embodying the company’s values.
Employee Development
Invest in training and development programmes that help employees align with the corporate culture. Provide opportunities for skill-building and personal growth that are in line with the company’s values.
Examples of Corporate Culture in Australia
Atlassian
Known for its collaboration and productivity tools, Atlassian has built a unique corporate culture based on values such as “Open Company, No B___t” and “Don’t #@!% the Customer.” They encourage employees to innovate and pursue unorthodox solutions. Atlassian’s dedication to its culture has not only attracted top talent but has also contributed to its global success.
Canva
Canva’s corporate culture emphasises creativity, collaboration, and a user-centric approach. They offer a range of perks and benefits to employees, including a flexible work environment and opportunities for personal development. This culture has helped Canva become a unicorn startup and a highly sought-after employer in Australia.
Carsales.com.au
Australia’s leading online automotive marketplace underlines collaboration, innovation, and a strong customer focus in their corporate culture. Carsales.com.au has been recognised for its flexible work arrangements, skills development initiatives, and supportive, family-friendly policies.
REA Group
The parent company of property portal realestate.com.au, REA Group’s culture emphasises innovation, collaboration, and a customer-first approach. The company encourages employees to challenge the status quo and regularly hosts hackathons and innovation challenges. Within the REA Group, the REAch programme showcases the company’s commitment to social responsibility. They encourage employees to volunteer and give back to the community, demonstrating a strong commitment to corporate social responsibility as part of their culture.
Take inspiration from the above successful examples and embark on the journey of creating your own unique corporate culture.
DISCLAIMER: This article is for informational purposes only and is not meant as official business advice. AVANTE PARTNERS has no business relationships with the companies mentioned in the article.