Organisational Culture: What Is it and why is it important?

“Organisational culture” is a phrase that gets thrown around a lot, but what does it actually mean? Intangible and difficult to define, organisational culture means different things to different people. We define is as ‘the set of values, ethics, and beliefs that define the day-to-day operations and the atmosphere at an organisation.’

In a nutshell, it’s your charity’s personality.

Why is it important?

Often seen as a ‘nice-to-have’ frippery, organisational culture is a vital component in keeping employees happy, motivated, and engaged. In fact, as research by HR platform Achievers found, it’s one of the top indicators of employee satisfaction and one of the main reasons that almost two-thirds (65%) of employees stay at an organisation.

It’s also a top priority for job seekers. A whopping 77% consider an organisation’s culture before applying for a role, and almost half of employees would leave their current job for a lower-paying opportunity at an organisation with a better culture.

Not convinced? Here’s one more stat for you. Organisations with happy employees outperform their competition by as much as 20%.  Yes, it can have a direct effect your bottom line … if this doesn’t convince you, we don’t know what will.

How to build an effective organisational culture

Organisations that nail their culture have exceptional rates of staff retention and productivity. It’s the secret sauce that takes their teams from good to exceptional. But what makes a winning organisational culture?

Here are three (of many) components that contribute to an awesome culture. We’ve also thrown in some examples of ways charities are putting them into practice.

Define and live your core values

Building shared values, and living those values, is the bedrock of a great organisational culture. They steer the way your people behave, treat one another, and go about their day-to-day work.

Take Mencap’s, for example.

• We are passionate about making the world a better place

• We are inclusive of everyone

• We are brave we challenge and try new things

• We are positive in our work and with each other

• We are kind to everyone

These core values paint a clear picture of who Mencap are, what they look for from their staff and how they approach their work.

Tip: Rather than create top-down values, give your team the opportunity to co-create them. After all, your values should be living, dynamic ideals that the whole team believe in. 

Foster strong relationships between employees

Work relationships are key to employee well-being. They can positively or negatively affect employees’ stress levels, productivity and happiness. So, if you want a happy, healthy, and united workforce, it pays to support and encourage social connections among staff.

Thirtyone:eight prioritises this with a number of initiatives, including:

• A dedicated games room for staff to use at break times, with a television, table-tennis table and table football. They run two table-tennis leagues, one for beginners and one for those who “want to get serious.

• Regular all-staff lunches, funded by the charity.

• Barbecues in the car park, cooked by the chief executive.

Prioritise employee wellbeing & work-life balance

A survey by Monster found that two in five (60%) of respondents ranked ‘well-being’ as their top or second preference when choosing an employer, with a third (34%) ranking it as their top priority.

It matters to jobseekers so it should matter to you. Ingraining it in your organisational culture is a way to show potential employees it’s a priority.

In its broadest sense, wellbeing is impacted by a number of elements, such as mental and physical health, a positive work environment, financial well-being, and healthy lifestyle choices.

Royal Holloway Students' Union ticks all these boxes with their wellbeing initiatives which include:

• Half-days on Fridays during July and August

• Birthdays off work and first-day-of-school leave for parents

• Wellbeing walks during working hours

• Staff netball, rounders and other sports focus on socialising and health

• Financial bonuses for exceptional performance

Recognise employee’s achievements

Another key component of a strong organisational culture? Making your employees feel appreciated. It may sound obvious, but a global study by the O.C. Tanner Learning Group found that 79% of people who quit their jobs cite “lack of appreciation” as their reason for leaving.

The lesson? Make gratitude part of your organisational culture.

There are loads of ways to do this. Over and above grand gestures like pay rises, bonuses, and promotions, thank you notes, gifts for staff members who go above and beyond, and acknowledging individual achievements in team meetings can go a long way to making staff feel valued.

Thirtyone:eight excels in this area too:

• As part of their appraisal process, staff who have achieved over and above expectation in a given year are given a cash bonus

• Staff receive gift vouchers and cards on their birthdays, signed by the chair of trustees, along with a note of thanks for their dedication

Final Word

Organisational fit is an important aspect of the recruitment process. If you want some help/advice on hiring the right people for your team, give us a call on 020 3750 3111