The Role of Corporate Values in Developing Work Culture and Employee Loyalty

Beside thinking about a strong business strategy, building a healthy work culture and maintaining employee loyalty are also equally important missions for a company. In this regard, corporate values play an important role as the foundation for how employees work, coordinate, and develop within the company.

Company values are not just words displayed on office walls or written on the company's website profile. It is a principle and commitment that guides behavior and policy-making within the company. Hofstede's Value Theory explains that the work culture within a company or organization is often influenced by the values held by the individuals or groups who work there.

In Indonesia, for example, the value of collectivism is still strongly held. Collectivism reflects a work culture that prioritizes family-based relationships over strict individual competition. This can be seen in the large number of community-based companies or startups that tend to emphasize cooperation, collaboration, and progressiveness over individualism and competition. So, how does work culture impact employee loyalty?

Loyalty is one of the factors that determines a company's sustainability. Employees who feel aligned with their company's values tend to be more motivated, satisfied, and stay longer. This loyalty can be influenced by the following factors.

1. Career Progression and Challenges
   Employees tend to be more loyal if given space and opportunities to grow.
2. Job Securit
   This includes fair wages, benefits, social security, and psychological or mental safety.
3. Work Environment
   A supportive work culture, adequate facilities, and an inspiring leadership approach also determine whether employees feel comfortable or not.

Companies that consistently show appreciation and affection for their employees' performance simultaneously increase employees' sense of ownership over their work. This is also reflected in the trend of corporations in Indonesia that are starting to implement internal programs such as monthly rewards, or simply collective activities like watching movies, exercising, and others.

While having strong company values can be an advantage, implementing them is certainly not an easy challenge. According to research, some of these challenges include the following points.

1. Incomprehensive Dissemination of Value
   It's not uncommon for company values to only be felt at the managerial level, so they aren't truly applied in daily work activities. For example, a company that values transparency but still has a hierarchical and bureaucratic work culture.
2. Insufficient Adaptation to Changing Times
   Younger generations like Gen Z tend to have different expectations regarding the world of work. They value flexibility, work-life balance, and inclusivity more. If the company doesn't grow and adapt to those values, it will affect retention and the company's long-term sustainability.
3. Challenges in Consistency
   Ensuring values are internalized at all management levels is a significant mission, especially for companies with a large number of employees spread across various locations. Without sustainable strategies and systems, company values can lose their relevance.

Company values are more than jargon; they are a crucial part of shaping work culture and loyalty. A company that can effectively instill values in its employees' daily lives will find it easier to create a healthy work environment, boost motivation, and ultimately retain the best talent in the industry. However, implementing values also presents challenges, particularly in ensuring these values are reflected in the work culture, not just a formality. The ability to adapt is also important so that values remain relevant to the company's vision and mission in the face of changing times.