20+ Company Culture Statistics for a Happier Workplace
- Published: 16th November 2022
A company’s culture is a vital, but oft-neglected aspect of too many workplaces. It is also much more than simply investing in a foosball table, or doing something as drastic as installing a slide at the office.
In this article, we have gathered the most essential company culture statistics and facts to give you a clearer picture of what employees, and employers, expect and want.
10 Vital Company Culture Statistics for 2022
- A healthy company culture helped many businesses adapt to the pandemic.
- 62% of American believe sexual harassment in the workplace is a significant issue.
- 95% of executives believe cultural fit is vital for proper integration during a merger.
- Self-employed people are happier.
- 65% of employees prefer a hybrid work model.
- 85% of the global workforce is not engaged at their workplace.
- 2 out of 5 US employees feel burnt out.
- Only 25% of Millennials believe an informal work environment is very important.
- Highly engaged employees are 17% more productive.
- 77% of senior management feels connected to their company’s purpose (compared to 54% of the regular workforce).
Company Culture Importance: General Stats and Facts
Much has been talked about when it comes to workplace culture. But let’s see what the numbers say about this aspect of a business and how the employment market has been behaving recently.
Self-employed people are much happier.
According to a meta-analysis of almost a hundred research papers, spanning over 40 years, self-employed people are happier. In fact, the report states that they have a “significantly higher degree of wellbeing.”
One factor behind this feeling of happiness is related to the level of autonomy self-employed people have.
(University of St Gallen)
37% of engaged employees are looking for a new job.
Statistics on company culture and engagement show that, even when people are engaged with their work, they might still be looking for better opportunities.
However, when it comes to actively disengaged employees, 73% of them are looking to change companies.
Globally, 85% of employees worldwide are not engaged at work.
This might not come as a surprise to most people. The cause, according to a Gallup report, is that the importance of engagement is not fully understood by employees, and it’s not taken seriously by management.
Things are slightly better if we move from a global level to the US. Namely, only 15% of employees, globally, are engaged, while 35% of US employees report feeling engaged and motivated at their workplace.
75% of Millennials don’t believe an informal work environment is very important.
The stereotype about Millenials chafing in a typical, formal work environment doesn’t seem to hold that much water. According to organizational culture statistics, only 25% considered informality at the workplace as extremely important.
The rest stated they preferred an environment where they could learn and grow and have good bosses. They also stated that being interested in the work they do is also very important.
Consistent communication, a clear vision, and a supportive culture are critical for a successful workplace.
A study of 17,000 knowledge workers from various countries, age groups, and employment levels showed the above are the most important aspects needed for a happy and successful workplace.
71% of potential candidates talk to a company’s employees first.
Data and statistics on corporate culture show that most of the potential candidates for a company always talk to said company’s employees. They try to get a feel of what it’s like working there.
In other words, there is a good chance that people thinking about applying for a job position at a company will know exactly what the atmosphere at the workplace is.
Highly engaged employees are 17% more productive.
This might come as no surprise – engaged employees bring better results. Furthermore, they also make 20% more sales and generate 21% higher profitability when compared to those who are not as engaged.
Good company culture helped companies adapt better to the pandemic.
Company culture statistics show that 69% of organizations that properly adapted and survived the Covid pandemic claim that a healthy culture gave them a competitive advantage.
Senior management of these companies stated that a strong culture made it much easier to implement and adapt to new policies.
Globally, in 2021, 40% of people considered leaving their employer.
According to Deloitte, a big reason behind this statistic is people reconsidering their position in life, caused by the pandemic.
This consideration might also have been caused by the company’s behavior during the pandemic, people understanding they have more options than they thought, and workers’ understanding of the viability of remote work.
More people feel managers recognize their achievements at work than they did 20 years ago.
In 1999, corporate culture statistics showed that only 38% of employees felt they received the recognition they deserved at the workplace. According to data gathered by a recent Gallup poll, in 2022, 54% felt they were recognized.
Conversely, 11% felt they weren’t recognized at all, in 1999, compared to 7% in 2022.
Company Culture at the Front Line Employee Level
Let’s see what employees think. The below stats represent how employees react to company culture and what their opinions are on certain aspects of their workplace.
Employees who feel their leadership is transparent are six times more satisfied with their workplace culture.
There is a clear connection between transparency and motivation in the workplace. Transparent company culture statistics show that not only are people happier, but they also report having a sense of belonging to the company four times stronger than those who don’t.
65% of employees report preferring a hybrid office model.
The pandemic definitely changed our approach to the office, work, and commuting. Now, more than two-thirds of employees would prefer working a couple of days remotely, and a couple at the office.
However, it seems senior management disagrees. Only 38% of executives and high-level management would prefer a hybrid model.
Two out of five US workers report feeling burnt out.
If there is one thing you can learn from these statistics about company culture, it’s that a large percentage of American workers are burnt out. Furthermore, it seems that women are 32% more likely to be burnt out.
The issue is so prevalent that even expats looking to move to America and work there are warned of the United States’ work culture and long hours.
People are happier with their bosses now than they were 20 years ago.
According to a Gallup poll, in 2022, 64% of employees feel they are completely satisfied with their immediate supervisor or their boss. In 1999, this number was at 47%.
However, 4% report being completely dissatisfied with their superiors both today and in 1999.
In 2019, 62% of Americans said they believe sexual harassment is a major problem.
Business culture statistics can show how times and opinions have changed. Just a little over two decades ago, 50% of employees believed sexual harassment was an issue.
It’s interesting to point out the gender difference, as well. In 2019, 53% of men thought this was an issue, compared to 70% of women. In 1998, 45% of men and 55% of women thought sexual harassment at the office was a problem.
In 2021, 55% of American employees believe their leaders address racial justice only for show.
They believe that they are just writing and talking about it without taking any real actions and steps.
Deloitte does provide some advice, based on the company culture data they gathered. Namely, leaders should be clear on what changes need to be made, and how said changes will be addressed, through clear and actionable steps. They should also clearly communicate the execution of the above changes.
Company Culture From an Upper Management Perspective
Finally, in order to get a clear picture of the status of a workplace, the opinions of bosses and senior management need to be considered as well. Below are some stats and facts on what they think, and how well their perspective matches the perspective of front-line workers.
95% of executives claim cultural fit is vital for integration during a merger.
The statistics about mergers due to company culture show just how important this issue is for integration. In fact, 25% of executives claim that proper integration during a merger fails exactly because of a lack of cohesion and alignment between two companies.
29% of US executives believe people need to be in the office at least some of the time in order to build a strong company culture.
Furthermore, 21% believe they need to be in the office every day of the workweek. Around 5% believe they don’t need to be in the office at all to build a strong company culture, while 5% believe once a week is enough.
Only 6% believed one to three days per month was all that is necessary for healthy company culture.
77% of senior management reports a sense of connection to their company’s purpose.
In comparison, only 54% of lower management and front-line workers feel the same.
The importance of company culture statistics are backed up by the importance senior management puts on company culture. Namely, 66% believe corporate culture is much more important than strategy or operations. They also believe recruiting and employee retention should be top priorities, as should safety and collaboration.
61% of senior management believes their company is open to discussion about sensitive topics.
There is a disconnect in this opinion when we consider the rest of the company. Namely, corporate culture statistics show that 42% of middle management and front-line workers actually believe this to be true.
Furthermore, only 21% of all respondents of all levels believe that there needs to be better inclusion, diversity, and equity at their companies.
Why is company culture important?
The simple answer – turnover. Companies that build strong and welcoming cultures have very low turnover rates. This leads to more money saved, loyal employees, and less work when it comes to hiring and training. Conversely, poor company culture leads to a company hemorrhaging quality employees, and thus, money.
A strong company culture implies happier employees. Besides the obvious benefit of being surrounded by a positive environment, happy employees are more productive.
How do you measure a company’s culture?
While finding an exact way to measure a company’s culture is impossible since it’s more a matter of atmosphere than cold hard facts. But companies with bad culture, like Amazon, are pretty easy to define. Jef Bezos might have a net worth of $171 billion, but the company is infamous for the poor conditions its warehouse workers operate under.
When it comes to positive measurements, however, there are several actionable things a company can do:
- Use anonymous surveys to check on employee satisfaction
- Keep an eye on KPI changes before and after making a change supposed to improve company culture
- Have your HR rep make regular detailed reports and gather company culture data.
- Be mindful of retention rates – low retention rates can indicate a need to improve the culture at your company.
How does company culture affect productivity?
The primary factors are happiness and loyalty. A happy employee is more energetic and more motivated to maximize their contribution to the workplace.
Loyalty gained through a positive work culture means you can keep quality people, even though another company offers a better paycheck (to a limit). Furthermore, a loyal employee means greater accountability.
Just consider companies with good culture, like Microsoft, Google, and IBM, the success they have, and the talent they attract.
Does a strong culture reduce employee turnover?
Yes. A happy employee has less reason to leave a company, even for a better paycheck.
What are the types of corporate culture?
There are a variety of definitions and categories. However, one approach divides them:
- Clan culture – focus on teamwork
- Market culture – focus on the bottom line
- Hierarchy culture – traditional corporate structure
- Adhocracy culture – focus on innovation
All of these have their own advantages and disadvantages. What actually makes the culture positive or not is the interactions between employees across and between all levels of the corporate ladder.
Companies with bad organizational culture come in all shades and stripes, and the actual type doesn’t matter as long as you are consistent.
A hierarchical culture can be extremely positive if the CEO is welcoming and respectful of an intern. On the other hand, clan culture can be very negative if infighting occurs or if people divide themselves into cliques as the company grows and acquires new people.
What are the critical components of corporate culture?
The importance of company culture can’t be understated. But what does it actually look like? While every company culture is different (both the healthy and the unhealthy ones), there are some universal elements that should always be considered:
- Clearly articulated values that include respecting employees, maintaining professional standards, and serving the clients.
- Putting values into practice consistently.
- A clear vision of what the company wants to achieve with its products.
- Finding people that align with the above elements.
(Harvard Business Review)
And there you have it folks, the newest and most up-to-date information on company culture. Whether you are looking to start a business, improve your team and culture, or just want to learn more about what people want and expect, this article hopefully helped.
With a BA in English literature and linguistics, training provided by veteran licensed court interpreters, and direct SEO management experience, Aleksandar Hrubenja knows what good content looks like. He’s tackled any topic thrown his way, spending the last six years writing articles on SEO, digital marketing, and finance – just to name a few.