3 striking stats that show why company culture cannot be ignored

Developing a company culture is too commonly an afterthought, especially in results-first organizations. There is a misconception that investing time in culture and revenue maximization are inversely related, when in fact, the exact opposite is true. By investing time in your people, you empower them with what they need to do their best work and obtain the key results that all business leaders seek.

If you are on the fence about investing in your culture and need some convincing – this is the right resource for you! In this article, we’re going to break down some eye-opening statistics that show the impact of pouring into your people and the results that come of it.

Companies with a great workplace culture grow their revenue 550% faster than their competitors

That’s right – that percentage is correct. In a sample size of 100 companies analyzed over the course of 25 years, Alex Edmans demonstrated that companies with better workplace cultures grew their revenue by over 500% faster than their competitors. It’s not even close. Edmans also found that those companies outperformed the stock market by 2% to 3% year over year. For many people, this is all the convincing that’s needed! Could you imagine outperforming your closest competitor by a margin like that? You wouldn’t even be playing the same ball game by the end of it – your company will flourish while your competition stagnates.

86% of job seekers avoid companies with a bad reputation

Those Glassdoor reviews can stack up! 86% of prospective employees will turn their backs on an opportunity if the company they’re looking at has a bad public image. Word-of-mouth spreads fast. With the power of the internet and social media, highly talented job seekers can judge your culture with just a few clicks and a couple of minutes browsing. It’s important to cultivate a culture that employees reflect fondly upon, because it can and will affect your ability to continuously attract the talent you want to get.

Respect is 17.9 times more powerful as a predictor of company culture than typical topics

A fair question a lot of people would ask after reading a statistic is, “Okay, how do I do it then?” We’re usually bombarded with stats whenever we look at a topic in-depth, but solutions aren’t always attached! If you’re looking for a solution, here’s a start. MIT Sloan found that whether or not an employee feels respected at work is by far the strongest predictor of whether or not a company culture is good, nearly doubling the next option.

At Dignify, we’ve embraced this truth and made it the core of what we do. The data and experience we have, through research and application with our clients, has shown us that respect makes a massive difference at all levels of a company. If an organization, even those on the brink of failure, can establish a culture where people feel respected and honored for who they are, that organization stands a much greater chance to withstand hard times and push through to achieve their goals. Employees go above and beyond and work miracles for employers that care.