Tech companies are transforming the lives of people around the world through their innovation. But innovation doesn’t exist in a vacuum — it begins with the culture that exists within each company. From each tech company’s unique cultural traits, employees find the freedom, flexibility, and inspiration to create technology that changes society.
Strong company culture is the foundation for growing a tech company and retaining high-performing employees. In light of the Great Resignation, thriving company culture will separate lasting companies from those that vanish.
The Importance of Company Culture
Work takes up a significant part of people’s lives, and there is much more to a career than simply clocking in and getting the job done. A strong sense of company culture inspires employees to work together and go the extra mile. And while competitors can replicate aspects of your company like strategies, marketing, and products, company culture remains unique to your organization alone.
Essentially, organizational culture is composed of shared values and beliefs between the company’s leaders and the employees. These values are established and then reinforced through various procedures, policies, and events that shape the structure of the entire organization.
So, why does this matter so much? Because company culture directly impacts employee morale, work ethic, and retention. Organizations with a negative company culture pay a steep price in the form of dissatisfaction amongst employees and a high turnover rate of 48.4%. In comparison, companies with a positive company culture have a turnover rate of only 13.9%.
How Can You Spot a Poor Company Culture?
Lately, there has been much written about the impact of the Great Resignation. Most analysts attribute these high levels of turnover to employees’ desire for the increased flexibility of working remotely, combined with an abundance of job opportunities. However, it seems that there may be deeper issues at play in the technology sector.
Diversity in Tech from mThree stated that over two-thirds of employees believe that their organization lacks diversity. Worse, over half of employees in IT or tech jobs between the ages of 18 to 28 either quit or consider quitting because “company culture made me feel unwelcome or uncomfortable.”
Tech company owners should be mindful of the importance of ensuring a comfortable, inclusive company culture for their employees. This entails hiring people from various socioeconomic backgrounds, genders, and ethnicities, along with employees with neurodivergencies.
Lack of diversity is one hallmark of a struggling company culture, but not the only one. A variety of factors can cultivate a poor company culture, including:
- Poor communication between CEOs, managers, and employees
- Allowing toxic workers to remain employed
- Over-emphasis on turning a profit and short-term returns
- Focus on performance management instead of organizational culture
- Resisting new ideas and solutions
Company Culture Spotlight: CodigoDelSur
Creating a strong company culture is fundamental, and your business success depends on it. But how do you put your good intentions into practice? Let’s take a look at one shining example of a strong company culture in the tech industry, with Uruguayan developer CodigoDelSur.
Since the conception of technology design and development company CodigoDelSur in 2007, CEO Nicolas Amarelle has managed to create an inclusive company culture that thrives on the happiness of their employees and clients.
Amarelle understands that the foundation of a strong company culture begins with the environment itself. CodigoDelSur’s unique, steampunk-styled office immediately sets the tone for a creative, innovative work environment when employees step into the building.
Furthermore, employees are encouraged to exercise their freedom of choice, with the option to work remotely or at the office as they please. As Amarelle states, “We have lots of people who much rather come to the office to have a quiet place to work in and see their friends, and others prefer to stay at home because they live far from the office or other reasons. We’ll continue to have an amazing office to go to, and people will continue to choose what’s best for them.”
The key to strong company culture is creating an environment where employees are respected, have an open line of communication, and feel safe expressing their needs. To further their positive team dynamic, CodigoDelSur regularly hosts engaging events to cultivate a creative workplace.
“We listen to our employees, so we make sure that they are comfortable and they have what they need,” said Amarelle. “We try to make the office a fun environment, to break away from the typical office routines.”
CodigoDelSur also values their place in the community, pinning their company culture to the greater culture around them. Employees are able to understand that they’re part of something bigger than themselves when CodigoDelSur gives back to the community with frequent charity events, scholarships, and internship opportunities.
Ultimately, there’s no way to replicate an exact corporate culture that you admire. But like CodigoDelSur, you can embrace the unique values of your team, your community, and your leadership to produce a positive culture that inspires employees and creates new roads to innovation.
