Company Values: Definition, Importance and Examples:
By having clear company values, you can ensure that all your employees are working towards the same goals. Its core values support the vision and shape its culture. Therefore, any business decision must adhere to these values.
A company without core values is not really a company. How can you build great teams, deliver excellent customer service, and drive innovation if you haven’t defined your company values in your employees?
No wonder your company’s values also play an important role in attracting talent: 46% of job seekers think company culture is very important when choosing a company to apply for.
You are probably familiar with the concept of renting for cultural adaptation. But to hire the “right talent,” you need to define the values of the industry you’re pursuing and make sure the candidate you hire has the same values.
In other words, building a solid business starts with building a corporate culture that reflects your core values.
Company Values: Definition and Principles
Essentially, your company’s values are the beliefs, philosophies, and principles that guide your business. It affects the work experience you provide and the relationships you develop with your customers, partners, and shareholders.
Your industry values are the DNA of your company and help you stand out from the competition. Therefore, you cannot make important decisions without keeping them in mind.
However, the value of a company does not mean that you have a brilliant communication plan about legal values and principles.
You must respect your company’s values in everything you do and set an example for your employees. This is the only way to build trust in the workplace. Don’t ask your employees to follow the corporate values you set for your company if you don’t primarily follow them and integrate them into your day-to-day work.
Your business value is at the heart of your business
Because your company reflects the values you and your employees represent, it gives them a sense of responsibility. In fact, any decision you make about your employees should align with the values you have communicated to them.
Each of your employees, from top leaders to bottom-up, is responsible for making decisions by asking a simple question: Does this decision reflect our values?
Define your company’s core values
During the early years of Smarp, we had no written corporate values. To be honest, we didn’t really see the benefit back then – we see it as something that large organizations need to create in order to create a positive image of themselves without adding any real value.
We were a small team sitting in a room day in and day out, working to win our next customer, improve our product and gather feedback from existing customers on what we could improve.
How Company Values Drive Business Success
As mentioned above, your industry values play an important role in your business.
Without them, it is nearly impossible to align your employees with your strategic goals, improve team collaboration or empower your employees.
1. Your industry values help your employees make the right decisions
Having a clear set of values helps your employees understand what you stand for. Their operational values also give them guidance in their work and a sense of security.
As a result, your employees are likely to make the right decisions, which will help them achieve the company’s vision and goals. And that’s because they understand the company’s mission, share the values you stand for, and believe in your brand.
Additionally, a well-defined set of corporate values provides moral guidance to guide employees through difficult times. In an unstable environment of rapid technological, environmental and social change, it is a necessary constant.
But to help your employees make the right decisions, you need to define the right corporate values – values that reflect what you stand for. That’s why Simon Sinek explains in his book “Starting with Why” that you need to communicate to your employees why your company exists, what your mission is and what you believe in.
2. Help improve communication with your employees
Communication with employees plays an extremely important role in building a better corporate culture, improving satisfaction, and increasing employee engagement.
The fact is, if employers don’t have clear corporate values, their communication with employees is often inconsistent and confusing. This often leads to workplace confusion.
With clear operational values, you can significantly improve communication with employees in the workplace and help them live those values.
3. Has a direct impact on employee motivation and engagement
Allowing employees to communicate based on their core values increases employee motivation and engagement.
By explaining your core values to your employees and why you are upholding those specific values, you can truly understand your business goals better and work harder to achieve them.
Employees involved are those who have clear guidelines for achieving their personal and operational goals. They have a good understanding of what is expected of them and how to achieve operational goals.
More importantly, the employees involved are those who share and believe in the values of their industry. If you want your employees to feel more engaged, you need to define your company’s values and communicate them well.