When some people think of a profitable business climate, they may envision an outdated or incorrect idea of an imbalance of work or an intense atmosphere. However, that’s not how it works. In today’s business environment, successful companies enjoy a company culture set by leaders that care about their employees’ well-being.
Employees who have excellent feelings of well-being reduce healthcare costs. They’re also 81 percent less likely to change employers, reducing the cost of employee turnover. In addition, the best leaders recognize that a profitable company needs a dynamic marketplace to stay profitable. This fact guides leaders to be concerned about the social good for employees and their clients and customers.
A business climate that recognizes the humanity behind the business is becoming a necessity for success. Leaders that extend that business climate into their companies contribute to increased profits.
Defining Business Climate
The overall business climate in any specific location is defined by the attitude of government and financial institutions toward business activity. There are other defining factors including the attitude of labor unions toward employers, the structure of taxation, and the inflation rate.
At a company level, a company’s business climate, or culture, is defined by how management and employees work together and how they handle outside interactions, including those with customers, business partners, and their community.
Business Climates in Action
Perhaps the best way to understand what a profitable business climate looks like is to review the different approaches of some successful companies.
Zappos – Online retailer
Zappos is almost famous for its business climate, as described in an article for Entrepreneur. The company has defined 10 core values that range from Weirdos Welcome to Fuel the Tribe and Do More with Less.
When considering a new employee, the first step is a cultural fit interview, which has a big influence on whether Zappos offers the person a position. Other defining factors include excellent benefits and a fun work environment dedicated to making customers happy.
The result is a group of like-minded individuals enjoying their work and providing the best in customer service.
The Container Store – Online and brick-and-mortar retailer
The Container Store has been ranked on Fortune’s annual list of 100 Best Companies to Work For every year for the last 19 years. According to the CEO, Melissa Reiff, the company focuses on “doing what’s right for all of our stakeholders by operating our business through the lens of our Foundation Principles and a commitment to conscious leadership.”
Employees hold a large portion of the company’s shares, they rave about the communication within the company, and they enjoy excellent benefits and pay.
REI – Online and brick-and-mortar retailer
Not every company has the luxury of hiring employees who all share the same passion, but REI does, and it makes the most of the opportunity. The same Entrepreneur article explained that REI’s motivation is to help all their stakeholders have fun, but they are also intent on promoting conservation of the environment.
The company operates as a cooperative, where member-owners benefit from the profits. Employees look forward to the company’s regular “townhall” meetings, where they can submit questions anonymously. Employees get the information they need, and management gets more insight into the issues the employees think are important.
REI attributes its success to its employees. They’re outdoor enthusiasts, who are already absorbed in the company’s interests. It makes the culture virtually self-propelled.
Preparing to Create a Business Climate
The business world needs new leaders who can absorb the lessons learned from studying companies like the ones described above. They can then create responsible and profitable company cultures throughout their career. The accredited online MBA program at D’Youville is an excellent place to start building or refining leadership skills. Our program offers an affordable and accelerated MBA course that allows you to gain proficiency quickly with the flexibility to maintain your busy schedule.