Is workplace culture important in a small business environment?
The short answer is yes!
Ever wondered why workplace culture is essential, especially for a small business environment? But what is workplace culture anyway? We’ll try to provide you with a brief definition later in this post.
Keep an open mind as we talk to you about 3 reasons why workplace culture is vital in a small business environment.
3 Reasons why workplace culture in a small business is important:
1. Stronger relationships
Due to the low number of employees, small businesses do better as the interpersonal relationships are closer, thus creating a better work environment. It creates a sense of belonging and responsibility. Small organizations are perceived to have a more supportive organizational culture than larger organizations. It’s easier and more natural for small business employees to feel a sense of camaraderie. Therefore, small business companies have better engagement, satisfaction, and higher retention rate.
2. People-focused
Employees in small businesses have higher performance than larger companies, as they value and recognize innovation. Small business environments have a flatter organizational structure; little to no middle management. Leaders directly manage their employees and form personal relationships with them. I mean you get to meet the CEO in person; yes, that’s an advantage that employees in larger companies almost never receive. Moreover, leaders motivate their employees better and align their goals with the ones of the company. Unlike larger companies, the leaders in small enterprises understand the weaknesses and the strengths of the employees and help them align their goals and tasks with the company’s objectives.
Thus, small companies will have higher productivity, creativity, and performance
3. Better talent attraction
As the competition for talent grows, how does a small business face the challenge of recruiting? When it comes to attracting top talents, you can establish the brand by building a solid company’s culture. Communicating your company’s culture will help potential candidates to choose whether they’re the right fit or not. As a result, you’re not only attracting better talents but also avoiding a bad hire. Generally, candidates look for a company that provides meaningful work. Believe it or not, a higher salary is no longer a top reason for joining a company. A 2017 survey by the Society for Human Resources Management (SHRM) revealed that company culture was the number one reason why candidates picked one job over another.
Definition of Workplace Culture
Edgar Schein defines it as “a pattern of shared basic assumptions the group learned as it solved problems in the culture, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to behave.”
When you hear the term “organizational or workplace culture,” think of the values and beliefs of organizations.
There are good company cultures and bad ones. Workplace culture affects the most vital asset of the organization; people. For instance, employees in a healthy workplace culture tend to view themselves as a part of a team and gain satisfaction from helping the company succeed.
On the contrary, employees in an unhealthy workplace culture tend to view themselves as individuals and only think about their own needs and forget about the company’s success.
Now, let’s see why it’s crucial in small business environments.
The importance of workplace culture in a small business environment
According to research about the difference between organizational culture in small organizations and larger ones, 83% of the persons working in small enterprises responded that they are satisfied with the work climate compared to only 61% of the persons working in large enterprises.
In conclusion
Small enterprises are more innovative, performance-oriented, and supportive than large enterprises, according to this research. Thus, it’s easier and more effective to build a healthy workplace culture in small businesses.
Now that you know the importance of workplace culture in a small business environment, what actions are you willing to take?
By guest contributor, Aymen Jammali, copywriter for AIESEC International