Having predetermined company values ensure that all your employees have a clear goal to work towards as a team. These core values help with the vision and shape its cultural aspect. Every single business decision has to be aligned with those specific values. A company without core values can not function successfully. If you do not define and share the same company values with the employees, it is not possible to build great teams, foster innovation and deliver quality customer service. Your company's core values can shape your business strategy and define company culture. They will help to create purpose, create a sense of commitment and improve team cohesion at the workplace.
Most job seekers are attracted to the company’s values and choose to apply to the ones with defined company values. To hire the right talent, you need to ensure that the talent acquisition is based on the same values as the company. Building a successful business begins with building business core values.
Company Values: Definition & Principles
Your business values are the philosophies, beliefs and principles that can drive your company. They transform the quality of employee experience in your company and also the relationship development with the partners, customers and shareholders. Your company values help to differentiate your business entity from the competitors in the market. No important business decision can be made without considering the company values.
Company values do not only mean reflecting a polished set of principles and values but also setting the right example to your employees by putting them into practice. The employees can not honour the company's core values if they are not followed and integrated into daily work. Since your business values give your employees from leadership to entry-level a sense of responsibility, they need to make decisions based on their core values.
Definition of Core Values
Business core values help to develop strategic customer service for your employees. The elements of core values are-
- Motivator: Core values can help employees to become better human beings as those values are the most powerful motivators of personal action.
- Moral: Values are such qualities that are worth striving for and can be regarded as morally right and virtuous.
- Action: Objects, ideals, ideas, action patterns, characteristics, and issues are based on core values.
- Guidance: Since values are organizing principles, they can guide and provide security.
- Importance: Values determine what can be most important to us.
How do Company Values Drive Company Success?
Your business values can play a significant role in your business. It is impossible to enhance team collaboration, align your employees, or employ the workers without stating a specific set of values. The reasons are-
1.Taking Right Decisions
A specific set of values comprehend what the company stands for to your employees. Therefore to your employee, your employees are able to make the right decisions which will align with the company’s goals and vision. It is because they understand the mission, share the same values and believe in the brand. They also get a moral direction that can guide them in difficulties in environmental, technological or societal changes. You need to communicate to your employees the reason why your business exists, the mission statement of your company and the beliefs you faithfully follow.
2. Improving Employee Communications
Employee communication is extremely important in developing company culture, improving employee satisfaction and developing employee engagement. If the employees do not have clear business core values, the communications with the employees will be unclear and inconsistent leading to confusion in the workspace. You can improve employee communications in the workspace by setting clear values that the employees can live by. Good employee communication can help to facilitate innovation, employee turnover, and employee productivity, reduce email overload, eliminate communication silos, maintain interdepartmental communications, coordinate across different time zones, knowledge sharing, knowledge advocacy, proper and better company culture and customer satisfaction and retention.
3. Impacting Employee Motivation and Engagement
As your employee communication is developed on company core values, it can boost engagement and motivation. You need to explain the core values and the reason for choosing these specific values to your employees so that they understand the company goals better and can work harder to achieve those goals. Engaged employees have clarified guidance to achieve personal and company goals. They know what the company expects from them and how to deliver the same. Engaged employees strongly believe in business values and engage with the company.
4. Making Clients Understand What the Business Entity Stands For
It is important to ensure that your clients can relate to the company’s core values. Company values speak for brand identity and what the business entity stands for. Having unique core values can also give the company a competitive edge. When a company-client relationship is based on shared common values, it will only strengthen the relationship based on common principles and beliefs.
5. Attracting and Retaining Top Talent
Values play a significant role in attracting and retaining talent. Candidates often go through extensive research before applying for job openings. They research companies’ websites, discussion forums, and social media pages of the companies they are interested in and are especially attentive to reviews. This also goes for employers who want to hire the right candidates. You can ask the candidates about their values to decide if they are the right fit for the position. Your employee turnover rates can increase in the coming months if you do not previously check if the candidate is a cultural fit.
6. Attracting Customers with Same Values
Since potential clients care about the company's values, it is important to have a specific set of defined values. When a company finds a similarity of values in specific clients, the chances of being chosen increase. If your company values include accountability, you will attract new clients who are fond of transparency and accountability from their vendors. Therefore identifying the leads and values are important.
7. Making Employee's Lives Easier
Your internal communications team and marketing team should have a great knowledge of company values to align their messages. To implement credibility, external and internal communications need to be consistent. Companies without preset values might find it difficult to come up with effective communication strategies. Marketing teams which have a proper understanding of company values can easily attract new qualified leads that can convert. Your message should reach the right audience. When your messages include values resonating with the target audience, you will be able to catch their attention. It should build trust with the leads through authentic messages.
Also Read: Top Small Trading Business Ideas
Examples of Common Company Values
Not all companies have the same set of values. Some company values are more common than others. Here are top company values that can provide company values examples which are employee and customer-centric. These values are-
- Customer Experience
- Result oriented
- Constant improvement
- Hard work
- Employee Development
- Collaboration and Partnership
Your company values directly impact your business. Statistics show that most CEOs and CFOs consider that corporate culture heavily impacts creativity, productivity, profitability, growth rates and firm values. Many organisations now include employee recognition programs. Statistics also show that strong company culture is the key to company success and it is the main reason for job seekers looking for work. If the company culture promotes a bare minimum work-life balance, the employees will still continue with their roles. Some employees stay at a particular company based on the value it provides to their careers. Therefore, it is evident that company values are an important part of running a successful business.
Hopefully, you are made aware of the values of a business, top company values etc. through this article. Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.