What Role do Core Values Play in the Success of a Business?

It's interesting to think about how the core values of an organisation can have an effect on the way it's perceived by others, both positively and negatively. For example, if an organisation is known for its values of honesty and integrity, then that's likely to reflect positively in the way it's seen by others.

Conversely, if an organisation is known for putting profit ahead of everything else, then that's likely to have a negative effect on its external image.

An organisation’s core values are an important factor in making a business successful. They encourage employee teamwork, which helps in achieving organizational goals, and also help in effective decision-making and increasing employee satisfaction. Collectively, these traits help in boosting overall organisational productivity.

Let’s take a closer look at the importance of core values for a business.

What are Company Values?

Company values comprise of the core beliefs, values, philosophies, and principles that define the organisation’s culture. It’s the driving force that creates a sense of commitment and teamwork in the workplace. Company values also play a critical role in talent acquisition. According to statistics, 46% of job aspirants would consider core values before applying to any organisation.

Company values communicate organisational culture to customers, employees, and stakeholders. These values help organisations to set short-term and long-term goals. Hence, company values ensure that companies have a framework to achieve their objectives.

Why are Company Values Important?

Organisations’ core values provide purpose to their employees. And employee satisfaction relies heavily on purpose. According to a McKinsey & Company survey, 70% of employees said their work heavily influenced their sense of purpose. However, when non-executives were asked if they were living their purpose at work, that number dropped significantly to 15%.

Therefore, it’s important that all employees embrace an organisation’s core values, not just at the executive level. In addition to improving employee satisfaction, purpose increases the bottom line and builds customer loyalty. 

Here are some reasons why company values are important for your business:

1.    Values Define an Organisation

Organisational values define what matters most to a company. They give your employees a common purpose to work towards, understand, and align to their day-to-day activities. By defining and promoting your company's values, employees understand what is expected of them and by recognising and appreciating what your organisation stands for, and what it aspires to accomplish, employees gain an understanding of how they can contribute towards achieving success. This leads to an increased sense of  professional fulfilment for your employees, in addition to improved performance and workplace morale.

2.    Company Values Help in Decision Making

Employees should determine the right course of action by assessing your organisation's values and purpose. Even in volatile or uncertain times, your employees will make the right decision for your organisation by keeping your values in mind and following them.

Additionally, it can give employees a sense of confidence. Employees can ensure they are making the right choice by asking themselves if their decision reflects the organisation's values. For example, in a cohesive organisational environment, individuals are more likely to reconsider their decisions if they are not aligned with the company's values.

3.    Values Ensure Employee Retention

For many employees, a job search is usually centred on finding that elusive 'fit,' a company where they can thrive and align with their business principles. Jobseekers are increasingly asking about employees' values before applying for a position, and not just what the company does.

Promoting your values will attract like-minded candidates with the same principles as your organisation. And recruiting employees who share your values will help you to retain them for longer. Often organisations who do not recruit based on alignment of values experience higher staff turnover since their employees’ principles may conflict with those of the organization.

4.    Organisational Values Promote Teamwork

Your organisation's purpose and vision helps your employees to understand how their contributions add value to the whole. A strong sense of community and a willingness to be good brand ambassador can result from this, which can positively impact your company culture. Having teamwork in your organisation also helps increase productivity, and contributes towards ensuring that the company achieves its business objectives.

It is your organisational culture which helps to create a bond between employees. As a result, they will collaborate and work daily to achieve long-term organisational goals.

5.    Values Encourage Employee Empowerment

A company's values; particularly those which foster harmony and productivity at work, often outline key characteristics of successful employees. Good examples of these attributes are respect, open-mindedness, transparency, and loyalty.

Managers and employees can develop a two-way contract that improves cross-functionality by discussing these values with direct reports during employee reviews. Regardless of rank or status, employees at a company should be able to hear and respect each other's values.

How can you Fortify Company Values in your Team?

Every organisation has its unique core values. Therefore you must develop and communise the company's values to craft a unique identity. Here are three ways to reinforce core values in your organisation:

1.    Identify Employees that Illustrate Core Values

Employees will be more motivated to live up to your company's basic principles when you give them the authority to do so. Recognition enables them to express their ideas in actual, everyday activities rather than idealistic notions.

If "determination" is one of your key values, you might emphasise this value by honouring a worker who goes above and beyond to satisfy a challenging customer. These values give workers a good illustration of how to exhibit this fundamental value during typical job activities. Additionally, adding a modest incentive to this acknowledgment might strengthen its significance even more.

2.    Communicate Your Values to Your Current Employees

Core values are typically written on the walls around the business in a physical setting. But in a virtual setting, developing additional strategies for maintaining these ideals is crucial. You can keep your fundamental values at the forefront of your daily communications by posting them on your corporate intranet page or by including them in your weekly newsletter.

Additionally, you can bring your core beliefs to meetings. Its good practice to encourage your leadership team to present business updates regarding your organisation’s values at company-wide meetings and events. Being open and honest about how your business upholds its values and how it strives to do better, builds employee trust and strengthens their understanding.

3.    Embed Core Values in Employee Acquisition, Hiring, and Training

Your company's core values should always be listed on your career pages. You’re more likely to be successful in achieving your organisation’s goals by attracting candidates who share your values and by deterring those who don't. In addition, it’s important to evaluate new job candidates on a company value basis. It is also easier to determine whether a candidate is a "culture fit" by evaluating them based on company values.

When hiring a new employee, it’s important to introduce your organisation’s core values and explain their importance early on. Providing videos, flyers, and media resources helps them to understand your values.

Wrap-up

Company core values play a critical role in the success of an organization. Over the past few years, the corporate world has undergone drastic changes with the global pandemic and significant changes in workplace conditions also. Organisational leaders have to alter their core values due to these changing times.

It’s not easy to go through this transition. Understanding and adequately addressing customer and organisational objectives in a timely manner are important factors during the transition to the new ways of working. And having an effective way of managing internal as well as external communications is central to this. At Omni Communications we understand the importance of organisations’ core values and can work with you to optimise all aspects of your internal and external digital communications, ensuring your organisation's smooth functioning.

For more information, contact us using the Contact Form below, call us on 0161 507 7999, or email sales@omnicom.uk