Having a strong company culture—also known as corporate culture or organizational culture—helps businesses retain the best talent, increases productivity, and improves employee happiness. Let’s explore what organizational or company culture is, why it is important to cultivate a good culture, and what benefits it can bring in the long run for organizations that prioritize it.
What is “organizational culture” and why is it important?
The term “organizational culture” is often discussed in business, but a clear definition is hard to pin down. It comes from social anthropology and includes the knowledge and beliefs people acquire in society. In the 1970s, this term became crucial for meeting the needs and values of workers. Today, companies value it more than physical assets, using it to shape new strategies.
Since we spend over half our day working and interacting with colleagues, a positive organizational culture significantly impacts our well-being and satisfaction in both professional and personal aspects of life. At Terra, we focus on building a strong company culture, recognizing its importance in our success.
Company Culture at Terra
Being a 100% virtual company since its inception in 2000, Terra has always prioritized creating opportunities for connection and support amongst our team despite the lack of face-to-face interactions. We understand the importance of fostering a sense of companionship and collaboration, especially in a remote setting where traditional avenues for communication are often limited.
To address these challenges, we implement various strategies such as prioritizing phone over email communication, hosting monthly company-wide meetings led by our leaders to discuss business updates and vision, team-specific monthly meetings with our CEO, and weekly check-ins within each team for progress updates. Additionally, we provide recreational spaces and flexibility to ensure a well-rounded and fulfilling work experience for our team members.
Impact on retention
Within each team, microcultures inevitably form, even within the broader organizational culture defined by the company’s mission and values. These microcultures develop unique values and work styles. While these microcultures need to maintain respectful and functional dynamics that align with the company’s overall objectives, it’s equally crucial to respect their individuality.
Numerous studies demonstrate that factors beyond compensation influence an individual’s decision to remain with a company. Therefore, acknowledging and respecting the unique microcultures within teams contributes significantly to employee retention and overall organizational success.
Thanks to these efforts, Terra currently boasts a remarkable 95% retention rate. Positive feedback from climate surveys underscores the effectiveness of our approach, demonstrating that employees continue to choose Terra not only for the supportive team environment but also for the career challenges it offers and the growth opportunities it provides for every collaborator.
The takeaway
Finding and training the right talent takes a lot of work and money. To retain top talent, you need to prioritize building a strong company culture that reflects shared values amongst your workforce. Doing so will help both the organization as a whole and individual team members thrive.
