What Are Organisational Values And Why Are They Important?
Company values are a set of core beliefs that reflect how a company approaches everything it does. The best values provide a framework for success and enhance a company’s ethics and direction.
What is the difference between a company's mission and its values?
Values and missions work together to form the foundations of a company’s culture. A mission statement will tell you where a company is going, and its values will tell you how it will act along the way. It’s important to have both so that people can quickly understand what your organisation is trying to achieve and what is important to you.
The purpose of defining and sharing your values is so that people have an idea of how your company works and acts.
There are many benefits of having defined values; here are just a few…
Everyone who is looking for great people to join their company will know that we are currently in a client-driven market. People are pickier than ever about the companies they engage with, and people are looking for much more than a salary increase.
71% of professionals say they would be willing to take a pay cut to work for a company with a mission they believe in and shared values. Additionally, nearly 2 in 5 (39%) professionals would leave their current job if their employer were to ask them to do something they have an ethical or moral conflict with (Source).
Potential candidates, clients and consumers are now more clued up than ever before. With so much transparency about your company being available online, people can quickly find out everything there is to know about your company. From customer to existing employee reviews, people can paint a good picture of your company without ever having interacted with you.
Research from Forrester shows that 52% of adults will consider brand values before making an online purchase. That figure rises to 70% in Millennials. Interestingly, 71% of Millennials will choose to pay more for products if they know some of the proceeds will go to charity.
It’s important to stand out against the competition, and the power of showing off your ethics and values is a powerful tool.
Values create a guide for behaviour which can create a strong work environment and increase levels of trust in individuals and teams. Cultures of trust also transfer to customers so people inside and outside your business get to know you and experience what you stand for.
When your employees, managers and customers buy into your organisational values, it can boost your overall employee engagement. This is caused by people feeling more connected to the organisation, team, and managers.
Managers know what to expect from their teams, and people know what is expected of them. It is also easier to maintain an expected standard when people know what they need to achieve.
When people feel more connected, it improves reputation and can lead to higher productivity and tenure.
The easiest way to put your values down on paper is to look at what your organisation already does and what is important to you. Consider the following…
What is the purpose of your company?
What behaviours do you want to encourage?
Do your values encourage the way you work?
How do you want the world to see you?
Even the best values won’t get engagement if you don’t communicate them effectively. Communicating values requires continuous communication and education. Try these tips:
Write them down and share them internally and publicly. People need to know what you stand for and what they should expect when working with you.
Create a value statement that is easy to remember and simple to understand. Statements are more powerful if people can refer to them when they need to.
Include your team when creating your values. Take some sample groups and do your market research on where you can improve and what changes you can make.