Workplace culture, company culture, organizational culture—whatever term is used, it’s a core driver of corporate success. A strong culture keeps employees engaged, motivated, and inspired to do their best. A weak workplace culture, on the other hand, can negatively impact profitability, talent retention, and even employee well-being.
What exactly is meant by “workplace culture”? What are the benefits of a strong company culture, and the disadvantages of a weak one? How can leaders improve their organizational and workplace culture?
This post takes a close look at the answers to those questions and more.
Key Elements of a Strong Company Culture
Company or workplace culture is variously defined as:
“How you do what you do in the workplace. It’s the sum of your formal and informal systems and behaviors and values, all of which create an experience for your employees and customers…company culture is how things get done around the workplace.” (Great Place to Work)
“Company or corporate culture is a shared set of workplace beliefs, values, attitudes, standards, purposes, and behaviors. It reflects both the written and unwritten rules that people in an organization follow. Your organization’s culture is the sum of all that you and your colleagues think, say, and do as you work together…(it’s) the personality of an organization.” (BambooHR)
“(Workplace) culture can be defined as the ways people in the organization behave and the attitudes and beliefs that inform those behaviors (i.e., ‘the way we do things around here’) — including formal, stated norms as well as implicit ways people work and interact.” (Harvard Business Review)
Most academic and business publications generally agree that the key elements that make for a strong company or workplace culture include:
Clear, Open, Transparent Communication
Employees believe that leaders are open and honest about what’s happening in the company, while leaders hold employees accountable.
Effective, Inspiring Leadership
Leaders model integrity, energy, and passion, in a way that makes employees want to follow them.
Recognition and Rewards for Accomplishments
Employees feel they are fairly compensated and that they are “seen” and acknowledged for significant achievements or extra effort.
Shared Values and Sense of Purpose
Per management consulting firm LBMC, “Building a purpose-driven corporate culture starts first with a set of core values that are then reflected in the company’s long-term goals. For businesses with successful, purpose-driven cultures, the company’s core values are much more than just bland mission statements…(they) help define a good fit for team members and give them a clear reason for their work and can also help uplift the company at large.”
Inclusivity and Sense of Belonging
Companies with strong cultures recognize the strength that comes from having truly diverse teams, and strive to make every employee feel included and valued. One of our past posts suggested that companies forget culture and focus on community instead, but creating that sense of community is really just one core part of building a strong workplace culture.
Mutual Respect at All Levels
In strong workplace cultures, leaders earn respect through competence and influence, while employees at all levels are treated with respect and professionalism.
Commitment to Employee Development
Organizations with strong cultures maintain their strength by investing in ongoing skills and professional development training for employees.
Support for Well-Being and Work/Life Balance
Strong companies want to get the best out of their employees, and recognize the importance of physical and mental health (along with training and technology) to maximize worker productivity over the long term.
Innovation and Vision
Talented employees want to be associated with companies that are forward-thinking and pushing the envelope within their industry. Apple, for example, is known for the visionary leadership of its top executives.
Benefits of a Strong Workplace Culture
A strong workplace culture is essential for the short-term performance and long-term success of an organization. Here are eight of the key benefits associated with fostering a positive workplace environment:
Increased Employee Engagement
Employees who feel valued and respected are more likely to be engaged in their work. A positive culture encourages open communication and collaboration, which can lead to increased productivity and commitment to organizational goals. (LinkedIn)
Increased Innovation and Creativity
A supportive culture encourages employees to share ideas freely and take calculated risks. This openness fosters innovation, allowing businesses to develop new products, services, and processes that can drive growth and preserve competitive advantage.
Enhanced Employee Retention
A strong workplace culture helps retain top talent by creating an environment where employees feel appreciated and properly challenged. High turnover rates can be costly, so fostering a positive culture that increases retention can reduce recruitment and training expenses. (Indeed.com)
Stronger Teamwork and Collaboration
In a strong company culture, employees are more likely to collaborate effectively. This teamwork enhances problem-solving capabilities and efficiency, breaking down silos between departments and fostering a sense of camaraderie.
Improved Mental and Physical Health
Positive workplace environments promote better mental and physical well-being among employees. Workers in healthy cultures experience lower levels of stress and burnout, leading to reduced absenteeism and presenteeism. This, in turn, means a more productive workforce. (LumApps)
Stronger Company Reputation
Organizations with a strong workplace culture tend to enjoy a better reputation among potential employees, clients, and investors. A positive image can attract top talent and new business opportunities, enhancing competitive advantage in the market. (Eden Software)
Resilience in Times of Change
Enterprises with a strong culture are better equipped to handle change. Employees who feel supported are more adaptable during periods of uncertainty and less concerned about layoffs, contributing to the long-term viability of the business.
Higher Customer Satisfaction
Employees who are happy and engaged are more likely to provide excellent customer service. A strong, positive workplace culture fosters an atmosphere where employees are motivated to go above and beyond for clients, leading to increased customer loyalty and satisfaction. (Forbes)
Warning Signs of a Dysfunctional Company Culture
Though the benefits of a strong workplace culture are significant and wide-ranging, not every company has created that type of community (though every company CAN achieve this). The good news is that any company can take action to improve its culture if necessary. Here are five warning signs that an organization’s culture is less than ideal and in need of a course correction.
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High Employee Turnover
Replacing employees is expensive. If a company’s turnover rate begins to creep upward unexpectedly (i.e., not due to macroeconomic or other factors outside the company’s control), and especially if many newer employees are leaving after short tenures, that should be a flashing red light for culture issues. Analyze exit interview feedback carefully for patterns of answers around unhappiness with leadership, workload, or work environment issues.
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Low Employee Morale
Not every employee will be happy every day, but if significant numbers of employees begin to appear disengaged, disinterested, unmotivated, or show signs of burnout, that’s a clear sign of workplace culture issues. Look for root causes such as poor work-life balance or a lack of opportunities for employee socialization and team bonding.
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Poor Leadership
Bad leadership can damage workplace culture immensely, and often stems from inadequate training and coaching practices. This can lead to micromanagement (excessive control which damages morale and stifles autonomy, lack of clear goals or direction, and inconsistency in applying rules and rewards, i.e., “playing favorites”). To prevent this, make sure all managers are properly trained, from first-time supervisors to leaders aspiring to the C-suite.
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Resistance to Change
When senior management shows little appetite for innovating or adapting to industry change (e.g., due to a focus on short-term profits), it’s toxic to company culture. Employees eventually stop making suggestions or presenting ideas that will just be ignored or dismissed. The most talented will be the first to leave, which can start a downward spiral if not quickly recognized and addressed.
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Negative Employee Feedback
It’s vital to gauge employee feedback through periodic surveys and regular one-on-one meetings. This feedback can help the company make course corrections before the culture is seriously damaged. Surveys can reveal issues like inept leadership; a lack of recognition or growth opportunities; poor work/life balance; and a lack of transparency and trust in communication, among others.
Addressing these warning signs promptly can help turn around a struggling company culture and create a more supportive, productive environment.
How to Improve Your Workplace Culture
Improving company culture requires deliberate, focused actions from business leaders to create an environment that values employees, encourages collaboration, and fosters growth. It starts with analyzing employee feedback (see above).
Based on the results of employee surveys, exit interviews, and one-on-one meetings, look for trends in complaints and suggestions for improvement. Create an action plan based on that feedback. You may not need to incorporate all of the recommendations below, and your specific order of importance may be different, but generally speaking, here are nine steps leaders can take to improve their workplace culture.
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Improve Your Leadership
The expression, “people don’t leave bad jobs, they leave bad bosses” is frequently used because it’s so often true. According to the Redline Group, “50% of Americans self-report having at some point left a job specifically to escape their boss” and “Managers account for at least 70% of the variability in team engagement levels.”
Ideally, leaders up and down the org chart should model the values and behaviors you want employees to emulate (such as integrity, respect, and open communication) and be approachable.
To help achieve that, you may need to invest in leadership development training to improve those skills. BEST programs such as Igniting Team Performance®, Conflict Resolution Training, Emotional Intelligence Training, and our Manager’s Guide to Business Coaching can equip leaders at all levels with expert people-management skills.
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Improve Communication
With improved leadership should come better communication. To build and maintain a strong workplace culture, leaders need to share information transparently and openly with employees; create channels for employees to share feedback confidentially; and act on the feedback received.
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Recognize and Reward Contributions
Acknowledge individual and team achievements publicly and promptly. Use awards, bonuses, or non-monetary recognition to reinforce positive behaviors. Even modest, informal recognition (such as a shout-out at a free team lunch) for small but meaningful contributions can go a long way toward improving engagement and company culture.
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Support Employee Growth
Offer professional development and training opportunities as broadly as possible to employees for skill-building, training, and career advancement. Programs like our unique Competition to Collaboration® activity (in which teams compete against each other to complete a series of challenges in the fastest time, with an interesting “twist” halfway through) and Total Recall (which tests and improves communication) are a fun way to improve collaboration and problem-solving skills.
Beyond formal workshops and classes, create mentorship programs, and develop clear, impartial criteria and pathways for advancement and promotions.
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Focus on Work-Life Balance and Employee Well-Being
Encourage healthy breaks and the use of vacation days or PTO. Regularly assess workloads to minimize the need for after-hours work. Offer remote work, flexible hours, or compressed workweeks where feasible.
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Address Toxic Behaviors
Set clear standards for acceptable and unacceptable behaviors, and enforce a zero-tolerance policy for harassment, bullying, or discrimination. Address conflicts and misconduct immediately and fairly. Train leaders in constructive, professional conflict resolution (see above) and problem-solving techniques.
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Build a Collaborative Environment
Enhance teamwork and encourage cross-departmental cooperation through regular team-building activities. Collaboration is one of the key pillars of all professional team building programs, but is especially central to activities such as Bridge to the Future and Pipeline, where participants must collaborate both within and across teams to accomplish the final goal.
In addition, make sure all employees feel valued and heard, and trust employees to make decisions within their roles.
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Monitor Progress and Keep Improving
Regularly evaluate improvements to your workplace culture through surveys, feedback, and key metrics like retention and engagement. Be willing to adapt strategies based on new challenges or employee needs, and celebrate progress in creating a positive workplace culture.
Continuously reinforce that culture is a priority for leadership. By taking these steps, leaders can create a workplace culture where employees feel valued, supported, and motivated to contribute their best.
How Team Building Helps Improve Workplace Culture
As we noted in our expert guide to team building activities that work, the six core pillars of all team building programs are:
- Communication
- Collaboration
- Problem-solving
- Relationship building
- Leadership
- Fun!
Most of these bullet points have been covered above, but the last one is worth pointing out as well. Just because your organization is involved in serious work doesn’t mean employees can never have any fun.
While team building programs are designed to improve collaboration and people skills among employees, the fact they provide a fun break from the daily routine also contributes to developing and maintaining a strong workplace culture.
Final Thoughts and Quotes from Leaders About Workplace and Company Culture
Your workplace or company culture is the sum of the beliefs, attitudes, values, behaviors, and purposes that infuse your operations. A bad or poor company culture leads to excessive turnover, employee disengagement, and ultimately substandard performance. A positive or strong culture, on the other hand, brings a wide range of benefits.
The good news is that any workplace can be improved. It starts with training and development to build a strong leadership team, and extends to other vital strategies like encouraging and enabling career growth for employees, and engaging in regular team building activities that strengthen collaboration and workplace relationships.
Here are a few quotes from Inc. 5000 entrepreneurs on the importance and key elements of a strong company culture:
- “I don’t think there is anything more important. It basically dictates how you operate, how you treat your clients, how you hire, promote, and fire.” — Avetis Antaplyan, Founder, HireClout
- “It’s the single most important factor. The few times I’ve hired someone that wasn’t a great culture fit because they had great experience, regardless of skill set, it hasn’t worked out.” — Lauren Raimondi, Founder, All Aces Promotional Staffing
- “Company culture is what defines us and guides our every decision. We work so differently than any of our competitors, and that’s culture-driven. We hire not just for skill but, most importantly, for culture fit.” — Jesus Repetto, CEO, Titanium Tours
- “Culture is everything. Joy at work and a positive attitude require constant effort, but they pay incredible dividends.” — Carl Coyle, CEO, Liberty Resources
To learn more about how Best Corporate Events can deliver and customize professional development and team building programs that will enhance and reinforce your workplace culture, contact us to get the conversation started.
