Company values are not branding statements—they are operating principles that directly shape behavior, culture, and business performance. When values are clearly defined, limited in number, and consistently reinforced, they become a powerful driver of engagement, retention, and growth. Values-driven organizations outperform because employees understand what the company stands for, how decisions are made, and what “good” looks like in everyday work.
The real differentiator isn’t creating values—it’s activating them. Values must be grounded in mission, expressed in simple language, modeled by leaders, and reinforced through recognition and daily decisions. When values are embedded across hiring, onboarding, performance conversations, and peer recognition, culture becomes intentional rather than accidental. Strong values won’t appeal to everyone—and that’s exactly why they work.
Key takeaways
Company values are often talked about—but rarely used to their full potential.
When values are clearly defined and intentionally embedded into everyday work, they influence how people behave, how teams collaborate, and how businesses grow. When they’re vague or ignored, they become little more than words on a wall.
This guide breaks down why company values matter, how to create meaningful values, and how to turn them into a living part of your culture.
Company values influence nearly every part of the business—from employee engagement to customer loyalty and long-term growth.
Research consistently shows that values-driven organizations perform better:
In short, company values aren’t “soft.” They’re a strategic advantage.
Employees want to work for organizations that stand for something.
When employees understand and align with company values, they’re more likely to:
Employees who know and believe in their company’s values are significantly more engaged than those who don’t.
Values play a major role in hiring decisions.
Prospective employees often evaluate:
When values don’t align, employees are more likely to disengage—or leave altogether.
Strong values don’t just improve culture—they improve results.
Organizations with a clear sense of purpose experience:
When everyone knows what the company stands for and works toward shared goals, performance improves across the board.
Creating impactful company values doesn’t happen overnight—but following a clear process helps.
Your company values should be grounded in your mission and vision.
Ask:
If your mission and vision aren’t clearly defined, start there—they provide the foundation for meaningful values.
Next, bring together stakeholders from across the organization to brainstorm potential values.
Look for:
A helpful technique is brainwriting, where participants write ideas individually and build on each other’s thoughts—helping surface ideas that might not come up in open discussion.
Research into high-performing organizations shows that strong values often fall into five key categories:
Companies with strong engagement scores tend to value psychological safety, collaboration, service, and continuous improvement.
More isn’t better when it comes to values.
Best practice is to select no more than 8 values, with 5 being ideal. Too many values can cause confusion and dilute focus.
Common high-impact values include:
The goal is clarity—not completeness.
Values only work if people remember them.
Follow these guidelines:
Clear, simple language makes values easier to integrate into daily conversations and decisions.
Defining values is only the beginning. The real work is embedding them into the culture.
Values should show up everywhere, including:
Employees should see how values connect directly to expectations and success.
Recognition is one of the most effective ways to bring values to life.
When employees are recognized for living company values:
Peer-to-peer recognition is especially powerful because it reinforces values across teams—not just top-down.
Company values must be modeled at the top.
Leaders and managers should:
When leadership lives the values, employees follow.
Company values define who you are as an organization.
As Motivosity’s CEO notes, values are most powerful when they’re distinct, intentional, and cost something—whether that’s tougher hiring decisions, different incentives, or new ways of working.
Strong values may not appeal to everyone—and that’s the point. They attract the right people, shape behavior, and build cultures employees are proud to be part of.
When company values are clearly defined and consistently reinforced:
Your values power your culture. Invest in them thoughtfully—and they’ll pay dividends across your organization.
