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As a manufacturing executive, you have probably devoted a great deal of time to developing your company’s strategy. However, if you haven’t given an equal amount of thought to your company’s culture, you could be missing the mark. Company culture guides employee decisions about both technical business issues as well as their behaviors towards their team members. Good culture creates unity in actions taken by a very diverse group of employees.
While you may be inclined to believe that company culture cannot be “engineered,” and that it just happens, the truth is that being intentional in creating culture is what will give your manufacturing company a competitive advantage. It is true that culture happens whether you want it to or not. Therefore, the very decision to not try to create a company culture, or worse, to not have company values, is in fact your choice of what culture will prevail – and not for the better. Here are three reasons that culture is just as critical as your company’s strategy:
Strong Culture is a Vital Tool for Recruitment and Selection
When seeking employment, people look for others who are like them or have similar views and interests. By having a clearly defined company culture, your manufacturing company allows potential recruits to quickly determine whether they will be a good fit. This saves you a lot of time and resources while scaling your company.
Culture doesn’t only help applicants eliminate themselves from the hiring pool. Manufacturing companies with a strong, clearly defined culture are also the ones who attract the most talented individuals. These are the best and brightest employees who will inspire the innovation your business needs to move forward. At Fusion OEM, we place as much, if not more, emphasis on hiring an applicant that will fit culturally within our organization than hiring an applicant with superior technical skills.
- Culture Impacts Your Bottom Line
As mentioned before, employees enjoy surrounding themselves with like-minded individuals. Companies with a desirable culture are able to better retain their employees simply because the staff enjoys their coworkers. This is critical because studies have shown that the cost of replacing an employee can be twice their annual salary, if not more.
In addition to reducing employee turnover, manufacturing companies that prioritize culture are more efficient and therefore more effective. At Fusion OEM, our team functions well, and we are able to maintain high quality output while keeping a balanced workload. Prioritizing a sound culture of employee engagement allows us to retain top talent and reap the benefits of a loyal workforce committed to the future success of our business.
- Culture Will Carry You Through Tough Times
As well thought out as any strategy may be, it’s a company’s culture that will take that strategy to where it needs to go. Company culture is stubborn, tough, and resilient, and it inspires employees to take action. It is what motivates employees to pull together and move forward, rather than throw in the towel at the first sign of trouble. This is what gives your manufacturing company the much needed competitive advantage in today’s unpredictable marketplace.
Culture creates the foundation for strategy and will either be a company's largest asset or greatest liability. While culture has many features and indicators, its core should include a clear sense of purpose and shared values that guide decision making across the company.