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 essential to have both so that people can quickly understand what your organisation is trying to achieve and what is important to you.

Defining and sharing your values will help people get an idea of how your company works and acts.

Having defined values has many benefits; here are just a few…

Attracting Talent

Staying Competitive

Increase Trust

Improved employee engagement

How do you develop organisational values?

How should you communicate your organisational values?

Attracting Talent

Everyone 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 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 asked them to do something they have an ethical or moral conflict with (Source).

Staying Competitive

Potential candidates, clients and consumers are now more clued up than ever. With so much transparency about your company being available online, people can quickly learn 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 interacting with you.

Research from Forrester shows that 52% of adults will consider brand values before purchasing online. That figure rises to 70% in Millennials. Interestingly, 71% of Millennials will pay more for products if they know some proceeds will go to charity.

It’s important to stand out from the competition, and showing off your ethics and values is a powerful tool for this.

Increase Trust

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.

 

Improved employee engagement

When your employees, managers and customers buy into your organisational values, it can boost 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. Maintaining an expected standard is easier when people know what they need to achieve.

When people feel more connected, it improves their reputation and can lead to higher productivity and tenure.

How do you develop organisational values?

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 promote the way you work?

  • How do you want the world to see you?

How should you communicate your organisational values?

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 necessary.

  • 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.

 
Oakstone International

Oakstone International is a SaaS and Fintech specialist executive search firm.

https://www.oakstone.co.uk/
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