- What Are Company Values?
Company values, also known as corporate values or core values, are the fundamental beliefs upon which your business and its behavior are based. They are the guiding principles that your business uses to manage its internal affairs as well as its relationship with customers. Once set, your core values need to be firm and unwavering a mandate rather than a suggestion. They should affect every aspect your business, from employee benefit packages and workplace culture to marketing strategies and customers service.
Keep in mind that company values should be more than stated values; they must be practiced values. If your company doesn’t follow through on the values it claims to hold, you can’t expect your hypocrisy to go unnoticed or unanswered by consumers. Employees, likewise, will notice if your company isn’t living up to its values statement, which can damage morale.
Why Are Company Values Important?
Numbering
83.1 million, millennials surpassed baby boomers in the 2014 census and
represent one-quarter of the U.S. population. Simply put, this generation is
too large to ignore. If corporate values matter to millennials and they do then they should matter to you, too. As
employees and customers, millennials favor companies whose values align with
their own personal values. That makes corporate values an important part of
both driving sales and attracting top talent.
When it comes to recruiting employees, you can even put a dollar amount on how
much company values are worth. According to a study by Fidelity, millennials would be willing to take, on average, a
$7,600 pay cut for a healthier work-life balance, a better company culture,
career development, or a more meaningful job factors that would improve their
overall quality of life.
A strong set of company values also gives your company direction and helps it
build a reputation. They set the tone for how your business interacts with
customers, markets its products, and makes important decisions. If you take
them seriously, your core values will help you form a solid brand identity and
a cohesive business plan.
How Do You Define Company Values?
You can
incorporate your corporate values in your mission statement or write a separate
statement of core values. Either way, the process should start with a
brainstorming session. Invite a handful of people who understand and embody the
traits you want your company to be known for. These could include the founder,
CEO, and other company officers, but don’t forget to include some key employees
too, such as your top salesman, your most respected managers, or your best
designer. Ask each participant to list what they think the company’s values are
or should be.
You can jumpstart and guide the process with questions like:
- What core values will resonate with our customers?
- What principles should guide our choices?
- What do we want our company to be known for?
- How will our values distinguish us from competitors?
- What qualities do we value in employees?
Values Employees should Strive to Emulate
- Values are purposeful. Your values shouldn’t be a list of generic ideals. They should be specific to your company, and they should align with your company’s goals. For instance, while a commitment to justice might make little sense for a tech company, a commitment to privacy would serve an important purpose.
- Values are choices. Rather than seeing your values as beliefs, treat them like choices. After all, most companies will say they believe that customer service is important. What differentiates your company from others will be the choices you make in the name of customer service. That could mean committing to a 24-hour response time for email inquiries and investing in the staff and tools to make that possible.
- Values will cost you. Like any choice, values come with an inherent cost. Make sure you are ready to uphold your company’s core values even when it would be easier or less expensive to ignore them. If your company claims a commitment to sustainability, you should use eco-friendly materials even if that decision cuts into your profits. Values that cost you nothing aren’t worth having.
- Values require action. Beliefs without action are just empty words. For instance, if you say your company values innovation, you can’t stifle employees with a “this is how it’s always been done” mentality. Instead, you should be actively encouraging and considering new ideas.
- Values are timeless. Although your company’s practices and strategies may change over time, your core values should be constant. Choose values you can stand by regardless of economic conditions, external incentives, competitive advantage, or corporate trends.
Keep in mind
that company values aren’t merely an internal matter, limited to an obligatory
section in the employee handbook that hardly anyone reads or remembers. Rather,
companies are expected to share their values publicly. Let consumers know what
you stand for and how you run your company.
Make sure your employees are familiar with your company values. Set values
employees can put into practice, and give them the tools and incentives to do
so.
