Opinions expressed by Entrepreneur contributors are their own.
It's no secret that every successful company needs a solid and identifiable corporation culture. Statistics show that 88% of job seekers believe a healthy work culture is essential to success, and younger generations now prioritize “culture fit” above all else when looking for work. No wonder, huh strong corporate culture that keeps employees engaged directly translates into as much as one 202% performance enhancement.
With such compelling data, it's shocking how often startups fail in this regard. As a successful CEO and co-founder, here are four common mistakes I've seen and how to avoid them on your startup journey.
Connected: Lack of Trust – What Does It Do to Your Company?
1. Not knowing when to move from the “tribe” phase to more structured processes
My company, Flowwow, is currently in that awkward “pre-teen” stage where we're no longer a startup “tribe,” but not yet a large corporation. This creates tension because those who have been around since the beginning often romanticize the “good old days” and resist implementing more structured processes.
Because this is often a challenging stage for brands, many stick to the do-it-all “startup family” model for too long. This can damage morale, motivation and long-term growth and increase the risk of a brand getting stuck at a critical stage. We tried to avoid this mistake by making sure our overall mission was closely aligned with the values shared by every person we hire.
We ensure that everyone feels supported and heard, confirming that everyone understands our flexible and adaptable processes. We also help place each person on a team that best suits their skills and personality so they feel useful, fulfilled and engaged. Remember that the data shows 85% of employees feel disengagedSTILL 69% say that all they need to feel happier and more engaged is gratitude and recognition.
2. Don't let your culture evolve with the brand
Some camps believe that brands should remain consistent over time, but we think that evolution according to the market and TRENDS it's much better for overall longevity.
Remember: as your brand grows and matures, so should your corporate culture. As a founder, it's your job to change internal and external perceptions of your brand during these transitional times. Your core values should remain the same, but how you act on them makes all the difference.
For example, when Flowwow transitioned from a flower service to a gift marketplace model, the founder's job was not only to reframe public messaging, but to ensure that we were emphasizing the things most important to us as a brand: openness, tRANSPARENCY and quality.
By making this our focus, we didn't need to do anything specific to drive our culture; it evolved naturally from shared authentic values. These principles have remained consistent over time, but our “values-driven” actions are more tangible: We provide resources like language learning, mental health assistance, and medical insurance to show the team that our values are more than words.
Connected: How to lead with transparency in times of uncertainty
3. Neglecting to establish top-down communication
I have heard of many startups that have failed or failed because the founding team felt they had to hide difficulties or tell employees only what they thought was “necessary.” Often, this is done with good intentions. They mistakenly think it will demotivate or alarm employees to hear about a crisis or difficult road ahead. Don't fall into this trap! You hired these people because you trust and believe in them, so prove it by being transparent and allowing them to support you and each other.
When management provides open lines of communication, employees feel empowered to take responsibility, bring new ideas and make decisions in the best interest of the brand. HBR notes that good communication from senior management is a key driver of employee engagement.
4. Forgetting that the founder is the heart and soul of the brand
Founders often fall into the trap of playing Superman (or woman): They feel they have to be involved in everything all the time, usually at the expense of their own well-being. Initially, this may be necessary, but a founder's primary goal should be to find and cultivate a core team that can be trusted to take on most of the day-to-day tasks.
A strong, compelling corporate culture needs an axis on which to turn, and that axis must be the founder. Install your values in every person you hire, and then let all the things that made you want to hire them shine through. Use your own influence and passion to improve, strengthen and run the company. By acting as your team's safe and trusted haven, you allow your corporate culture to flourish organically, resonating with both employees and customers.
It's vital that you don't let yourself burn out. You are an example to everyone, so it is your duty to pay attention to your mental well-being and constantly work to understand and manage your emotional impulses. Know your limits, act within them and Let your team see that you are human. This lays the foundation for a healthy and honest atmosphere.
Connected: How being transparent helps your company scale
The future of work is now, so don't let your culture fall behind
Corporate culture is essential to current and future organizational health and longevity. Look at factors like absences, attendance and even body language to get a complete picture of whether your brand vibe needs work. Remember, a healthy organization balances stability and growth, and sustainable improvements must always be top-down.