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How company culture influences employee loyalty and satisfaction

by | Sep 26, 2020 | Business Law

Businesses who excel at retaining loyal employees have often gone to significant lengths to develop and maintain a culture that encourages inclusion and participation. Employees who feel appreciated, needed and valued are much more likely to continually contribute their best work.

Building a company culture and infusing it with the characteristics that set a company apart from its competitors is often one of the more challenging aspects of running an organization.

Disgruntled employees and lawsuits

People who continue to feel bitter and angry after leaving a company may find any reason possible to file a lawsuit against their former employee. Sometimes, with enough evidence and convincing testimony, the company in question may face costly damages to its reputation. suggests some of the more common reasons why people sue former employers to include the following:

  • They feel they were unfairly terminated
  • They experienced some form of harassment
  • They feel their employer ignored their concerns and filing a lawsuit is their method of retaliation

Culture fuels commitment

According to Forbes, a positive company culture boasts many benefits one of which includes employee loyalty. Employees who enjoy participating in work-related duties and feel they can make a difference in achieving organizational objectives may remain committed over time. Feelings of unity may also encourage communication which may facilitate efficient and effective teamwork.

If employees do choose to leave a company, positive company culture may incentivize them to leave with professionalism to maintain the network they worked hard to build. Companies may find that the work they put into developing their culture pays dividends when they simultaneously establish trust, credibility and respect with their employees.