Corporate Culture is Key

In a world where the labour market is characterised by uncertainty and rapid change, corporate culture is becoming a success factor. “People are increasingly asking about it in job interviews and on rating platforms,” says Lena Lindemann, Chief Human Resources Officer at ERGO, in her HR Talk with Gabriele Fanta, Chief Human Resources Officer at Körber.

In today's labour market, which is filled with uncertainties and rapid changes, corporate culture has become a success factor. Recent findings from the Gallup Engagement Index 2024 highlight a concerning trend: 19 percent of employees feel emotionally disconnected from their employers, merely fulfilling their duties without engagement – the highest rate since 2012. Additionally, 45 percent of workers are either actively job hunting or open to new opportunities. These trends serve as a significant alert for businesses aiming to tackle the challenges of the contemporary job market.

The changing world of work

Gone are the days when employers could easily attract top talent. The pressing question now is: What can organisations do to make themselves more attractive and retain employees? More than just a term, a positive corporate culture plays a crucial role in the competition for talent. "Candidates are increasingly asking about it during interviews and on review sites," says Lena Lindemann, Labour Director at ERGO. In this HR Talk, she talks to Gabriele Fanta, Chief Human Resources Officer at Körber, about the crucial role of corporate culture in the success of a company and highlights how HR is actively involved in shaping it.

What is Corporate Culture?

Corporate culture is the basis for an organisation, influencing how employees work together, make decisions, and support each other. A clear and positive culture not only boosts employee engagement but also contributes in achieving business objectives. A robust corporate culture fosters trust and accountability, enabling employees to express their true selves at work and reach their full potential.

“The corporate culture is like a currency that sets us apart from other employers,” states Gabriele Fanta. This is particularly important in specialised sectors, where a strong culture is crucial for attracting and retaining talented individuals. “Research indicates that companies with a positive culture achieve better outcomes,” she adds.

The role of HR

HR plays a key role in driving culture, transformation and change within the organisation. It is essential that the company's values and beliefs are anchored in day-to-day processes, in order to have a lasting impact. "We agree that HR is key to driving this, but we cannot do it by ourselves. We promote und enable it but it is only through collaboration with other stakeholders that culture can truly flourish. Everyone has a role to play: HR, leaders, co-determination bodies, our employees - all of them," underlines Lena Lindemann.

Key takeaways on corporate culture from the HR Talk

• Corporate culture should not just exist on paper. Shared values and principles must be communicated and practised throughout the organisation to create a motivating and healthy work environment.
• A successful cultural shift requires a bottom-up approach, actively involving employees' views and needs. This method promotes acceptance of cultural changes and ensures that the culture reflects the workforce's reality.
• A strong corporate culture necessitates feedback mechanisms and open communication. Employees should feel empowered to share their thoughts and concerns. Platforms like podcasts and open discussions can facilitate the expression of critical opinions and enhance trust in leadership.
• Leaders play a crucial role in cultivating and promoting corporate culture. They should receive training to foster trust, collaboration, and effectively address modern workplace challenges.
• Organisations should motivate employees to share their experiences and engage actively in shaping the culture, acting as “culture ambassadors.”
• Small, focused initiatives can significantly influence culture, making it vibrant and tangible. This transforms corporate culture from a mere concept into a lived reality that shapes daily interactions.

A strong corporate culture is vital for retaining employees and attracting top talent. Companies that invest in their culture not only achieve better business results but also promote innovation and creativity.