Before proceeding to the level of importance of the company’s culture for startup ecosystem, we need to know what do the terms “Company Culture” and “Startup Ecosystem” mean.
In simple words, company culture defines the overall nature of the company. It defines the way employees work and managers make decisions. A company culture tells the employees how they need to handle issues such as interaction with outside companies, how employees need to interact with each other and many more. A variety of things lies in the list of the company’s culture, including the mission of the company, the values of the company, the work environment of the company, ethics of the company and expectations of the company.
Now, since we have an idea of company culture, let’s understand the startup ecosystem in a few words.
A startup ecosystem is an ecosystem that is formed by the collaboration of many people, organizations (either virtual or physical) which are related to those people, and new startups. The purpose of all this is to create new companies.
Finally, after having an idea of company culture and startup ecosystem, we can say for sure that company culture is pretty much related to the startup ecosystem. Let’s discuss the relation between the two.
If the company owners want to retain their skilled employees to boost the profile of their company, then all that is required for them to do is to develop an efficient and understandable company culture. A good culture plays a crucial role in the startup ecosystem. If the workers are not satisfied with culture, then the startup ecosystem can’t survive.
Is there any proof that suggests strong company culture is very crucial to the company’s success? Yes, there are many. Just take the reference to CultureIQ. According to CultureIQ, compared to companies with weak culture, the employees’ ratings for the company’s characteristics- such as values, work ethic, leadership and collaboration are evaluated as 20% more for those companies that offer great workplace culture.
While the startup ecosystem of India faces some challenges in the form of the hiring process, leadership, commanding a team, establishing an effective marketing strategy, access to capital and way of treating customers, good company culture plays a significant role in overcoming these challenges. Let’s discuss how important is company culture for the startup ecosystem with the help of some points.
Reasons that prove how important is company culture for startup ecosystem:
Following are the reasons that explain, how much company culture is essential for the startup ecosystem:
- Pulling investors
- Talented hiring
- Preference of recruitment agency of India
- Strengthening of the mission statement
There are many companies that not only pay well to their employees but also have certain compensation packages such as bonus payments for employees. Because of the compensation packages, the employees would likely be motivated to work even harder and produce better results.
In a startup ecosystem, when the compensation package is not stable, the only thing that can motivate employees is a good work culture. Having a workplace culture that promotes equality and a great work ethic among the workers can motivate the employees to stay loyal and work harder.
It is a reality that investors are likely to invest in that startup ecosystem that other than producing great products and services, has a great working environment. But why is that? It is very straightforward. An investor can’t just spend a lot of money without getting assured that startup companies have a great work ethic.
A good company culture opens dozens of doors for investors to pay a visit. When there is a culture of friendship, honesty, hard-working, unbiasedness and mutual understanding among the employees of startup companies, then there is hardly any reason for an investor to not invest.
We know that talented people would most likely prefer to join that company that offers a handsome salary and gives the employees some compensation. Yes, it is true, however, there is another thing that can bring those talented people in your company, and that thing is your workplace culture.
Hiring can be of talented people if the startup companies are aligned with a great code of work ethics. Even if the startup ecosystem doesn’t offer handsome salaries and some compensation, talented people would still prefer to be a part of that ecosystem, which runs in an honourable way. I mean, think about it, a person would always want to be in that place, which offers friendship and stress-free nature.
Preference of recruitment agency of India:
Why do recruitment agencies of India mostly suggest those companies to job seekers that have a strong culture? The answer is pretty straightforward. They do this to gain positive feedback from job seekers. When job seekers, with the help of any recruitment agency in India, find companies that offer great workplace culture, the job seekers would highly regard those agencies.
Having a strong culture would put your startup ecosystem in the list of multiple Indian recruitment agencies and thus there will be more chances for the startup ecosystem to recruit more talented employees.
Strengthening of the mission statement:
The startup company’s mission statement can be achieved even more quickly and effectively if they have a strong culture. Why is that?
When the core values of the startup companies are great and acceptable, then employees would feel that they are on the right path, and because of this, they would most likely be motivated to achieve the mission of the startup ecosystem on a quick basis and more handsomely.
To sum it all, I would say, company culture defines the overall nature of the company. It is the backbone of the company’s success. A company is with its employees and because of this fact, for a startup ecosystem, it is essential to promote a strong workplace culture. Talented job seekers would prefer to work for those companies that have a great work ethic with the inclusion of friendly and mutual understanding among workers. Strong and positive workplace culture can help the startup companies to achieve their goals in minimum time and what’s more, the employees tend to stay loyal to those companies that have a positive and strong culture.