Written by visionaryvogues » Updated on: May 09th, 2025
The Role of Corporate Values in Employee Retention and Engagement
These days hiring has become like the tip of the iceberg. The real struggle starts thereafter. Corporate values & company culture come to the rescue at such times. For employee engagement & retention organizations must strive to instill beliefs & a value system that is in alignment with the employees’ thought processes. Keeping in mind the needs of the employees regular updations in the corporate values have become a necessity.
A very recent survey by Gallup shows that 71% of employees presume the organization’s culture is a key component in their job satisfaction level. Speaking in the context of corporate values, these are non-tangible belief systems that cultivate the roots of workplace culture. Employees must have the feeling of getting up & showing up in the organization each day. If this very small thing isn’t being achieved, it is safe to say that the management processes need a significant transformation.
How do corporate values influence workplace culture?
Organizational ethics are the very cornerstone of an organization. Agreed that organizations exist for business & profit generation, there are no two ways about that. But at times, it may so happen that entrepreneurs aren’t able to handle the corporate values within the organization as they should be. These are the guiding principles that are streamlined by the founding members. These principles are expected to be followed by all employees on a day-to-day basis. This belief system comprises dictating policies drawn regarding all aspects of the workplace.
As & when organizations flourish, forgetting roots & the core value of why the organization was established goes a toss. Keeping the core corporate ethos always in the psyche acts as a reminder & bridges the gap between management & employees. Keeping integrity with transparency can help employees realize they can trust the upper management. Here are some takeaways from this:
Principled leadership: The managers or upper-level subordinates should care enough about the employees. These are the role models for the employees as after years of hard work, these employees aspire to be like them. In a way, these managers are the inspiration for the future workforce that sets a work ethic & standard for them. The core values should be principled & non-biased.
Fair guide: When the organization follows some corporate values with the intent to be in sync with them, it is safe to say that it has vouched to follow a path. This path concerns carrying out the daily operations within the organization. When making company-centric decisions like dealing with customers or negotiating with them, discussing prospects in place of existing employees, etc, the guidelines act as a blueprint for the management to make quicker, more efficient & hassle-free decisions.
Integrity & compassion: In an organization, various employees come from different cultures, values & beliefs. Personal values may be different from the corporate values laid down in the organization. In such a case, keeping the company values upfront & straightforward is a sign of integrity as it’s doing the right thing in any given circumstance. Compassion is an extremely necessary trait that organizations should hold high regard for. Maintaining a healthy, caring & empathetic workplace is a non-compromising & standard principle.
Role of Corporate Values in Employee Retention and Engagement
The company philosophy, if crafted to be in alignment with employee & organizational benefit, employee retention & engagement rate need no attention as such. According to Eagle Hill Consulting, 47% of US workers aren’t even aware of their employer’s core belief system. If your employees are unaware of these values, it is quite obvious they will not be able to represent them. Inconsistency & ambiguity in the values leads to discouragement & job switches on the part of employees. To exercise employee retention &engagement:
Craft ways to foster employee engagement: Organizations must try to get the employees emotionally invested in an organization. In the company beliefs, to maintain the company beliefs organizations need to make significant efforts. The world functions on money. Providing monetary benefits to well-deserving employees, imparting growth opportunities, & providing meaningful work experiences will lead to employee satisfaction in terms of work. Organizational values also play a vital role.
Retain deserving talent: Employees, whether new or old, keep on observing the company culture. A positive company culture & company policy is a decisive factor for the duration of work in the organization. If one gets opportunities like growth, recognition, & valuable work experience, no employee will think of a job switch too early. The talent in the organization must feel aligned with the values of the organization. If this is the condition, they are more likely to go above & beyond to contribute to the organization’s success.
Maintain transparent communication: It is important to open avenues for clear & transparent communication where employees feel at home & do not hesitate to share their ideas, concerns, or opinions. It is important to address the employees’ concerns that will make them feel heard.
Invest in employee training & development: The retention rate can be heightened by imparting the necessary training to the employees. After the performance evaluation process, organizations can identify the loopholes in the employee’s performance & give training accordingly. This will create a sense of belonging towards the employee & helps in employee motivation.
Take regular employee feedback: Collecting regular employee feedback is a practice that needs to be followed by each organization. It helps the organization understand where it is lacking & where the scope for improvement lies. This can be done by distributing a questionnaire about what employees think about the various aspects of the organization. Constructive criticism should be welcomed with open arms. This is one of the best practices to follow in corporate values.
Challenges in Formulating Corporate Values
No room for redundancy: Craft a mindset about what you think the foundational values should be. Call your “core values” & set them in the form of phrases. Place the poster of it in a prominent place in the office where everyone can see it while passing by. This will help to instill the said core value into the minds of the employees. For that, you need to keep it creative so that employees will pay constant attention to it.
Difficulty in memorizing: The core values like “who we are” can be made creative & easier to remember. It must not cause much effort to remember it, especially on the part of employees. The serial position effect can be used effectively by placing the corporate values in an efficient & easy-to-remember manner.
Use non-sluggish words: Using impeccable & fun language helps to move things faster. Also, beyond words remember to use good & effective statements for your corporate values. Enticing words always excite the readers & the message reaches just spot on. Instead of using typical & boring language, try to use good & fun words to help the employees remember the message. It will be loud, clear & fun.
Visual appeal: After the wordings & proverbs come the design or visual appeal. Making use of visually appealing color schemes, and intrinsic font style makes the core values reading experience interesting. If you’ve noticed employees read the company policy & usual lists with tired eyes, whilst fun Friday announcements or annual events displayed are read with excitement.
Conclusion
A value-driven approach to hiring employees while driving efforts toward employee engagement & retention fosters a positive work environment. Aligning the employee beliefs with the organizational goals frequently helps in establishing a connection with the employees onboard. Employee development investing is a long-term investment that will help to increase the retention rates substantially. Organizations must try to empower individuals to reach their full potential & also contribute meaningfully. So, the employers reading this, do you agree?
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