6 Ways to Improve Your Company Culture
Creating a positive and productive company culture has become one of the most sought-after goals for organizations today. Company culture is essential as it shapes the day-to-day experience of employees and directly impacts their motivation, satisfaction, and productivity. A strong, positive culture fosters an environment where employees feel valued, respected, and empowered, leading to higher engagement and a greater sense of purpose. When employees are connected to the company’s values and feel that their contributions are meaningful, they are more likely to stay, perform well, and contribute positively to the workplace. This dynamic creates a cycle of growth and retention, as engaged employees are motivated to put forth their best efforts and invest in the company's success.
Still not convinced? Check out below for information on exactly how important an investment and focus on company culture is.
A study by the MIT Sloan Management Review found that toxic company culture is the biggest factor driving employee turnover, with employees being ten times more likely to leave due to toxic work culture than for compensation reasons. Key drivers of toxic culture include disrespect, unethical behavior, and a lack of inclusion
According to a Gallup study, replacing an employee can cost one-half to two times the employee's annual salary. When an organization has a high turnover due to a poor culture, these costs can accumulate quickly, impacting financial stability.
Research from LinkedIn found that 69% of workers said they would be willing to accept a lower salary if it meant working in a company with a culture they value and enjoy. This suggests that a positive culture directly impacts retention, as employees are more likely to stay in an organization that provides fulfillment beyond compensation .
Gallup reports that only 21% of employees are “engaged” at work globally. Engaged employees, who tend to work in organizations with strong and positive cultures, are generally more satisfied and productive. Gallup has consistently found a correlation between employee engagement and higher retention and satisfaction.
In a study by TINYpulse, 91% of employees said that transparency from their leaders is critical to their job satisfaction. Companies with open communication, where employees feel informed and valued, tend to have higher satisfaction rates .
Companies with strong cultures are often more financially successful. Research from Harvard Business School found that companies with strong cultures and highly engaged employees see 3x higher stock market returns than companies that lack a strong, positive culture. High-performing cultures drive employees to contribute more actively, thereby improving productivity and profitability.
According to McKinsey, employees who feel valued and appreciated in a positive culture are 50% more productive than those who do not feel supported. This productivity boost is associated with higher engagement levels, better teamwork, and a sense of purpose at work.
A study by Glassdoor found that 77% of employees consider a company’s culture before applying for a job. A positive culture enhances the company’s reputation, attracting top talent and reducing recruitment costs, while a poor reputation can make it difficult to attract and retain skilled employees.
Employees in companies with positive cultures are more likely to refer friends and family. Referrals are often high-quality hires who already have an idea of the company culture, increasing their likelihood of staying.
However, as company leaders well know—building a great company culture doesn’t happen by chance. As we say at By Design it happens through intention and attention. Below, we’ll explore six strategies to improve company culture and provide resources to make these steps more actionable.
1. Cultivate Open Communication Channels
One of the pillars of a positive workplace culture is open and honest communication. Employees should feel safe expressing ideas, concerns, and feedback without fear of retribution. Leaders who are transparent about goals, successes, and challenges foster trust and build a culture of inclusion and respect.
Actionable Steps:
Establish regular feedback loops by implementing pulse surveys or employee engagement platforms such as SurveyMonkey or Glint. These tools can help gauge employee satisfaction and highlight areas of improvement.
Hold weekly check-ins or monthly town hall meetings. Allow employees to ask questions openly, voice concerns, and share their input on company initiatives.
Create anonymous feedback options. Sometimes, employees may feel uncomfortable providing direct feedback. Consider setting up an anonymous channel to encourage candid communication.
Resource: For actionable communication strategies, check out Radical Candor by Kim Scott, which provides practical advice on fostering open communication in teams.
2. Emphasize Work-Life Balance
A thriving company culture respects the boundaries between work and personal life. A balanced work-life dynamic is critical to employee well-being, preventing burnout and sustaining long-term productivity. Work-life balance doesn't only reduce stress; it also shows employees that their well-being matters to the organization.
Actionable Steps:
Offer flexible working hours or a hybrid work model that allows employees to manage their work in a way that aligns with their personal lives.
Encourage employees to take time off by implementing mandatory rest days or reminding them of the importance of utilizing vacation time.
Set boundaries around after-hours work by discouraging work-related emails or messages outside of work hours. Many companies now turn to Slack or Microsoft Teams settings that allow employees to pause notifications outside work hours.
Resource: Consider reviewing The 4-Day Workweek by Andrew Barnes, which explores the benefits and practicalities of a shorter workweek for companies and employees alike.
3. Prioritize Diversity, Equity, and Inclusion (DEI)
Diversity, Equity, and Inclusion (DEI) is essential for a company culture that values all perspectives and backgrounds. Organizations with inclusive cultures benefit from greater innovation, improved problem-solving, and enhanced employee engagement. Employees who feel they belong are more likely to contribute positively and bring their whole selves to work.
Actionable Steps:
Invest in DEI training to foster empathy and understanding across teams. This training should cover unconscious bias, cultural awareness, and inclusive communication practices.
Create employee resource groups (ERGs) for different demographics and interests. ERGs can provide a safe space for employees to connect, share experiences, and contribute to DEI efforts. Friendly reminder that we ALWAYS advocate for either offering a stipend to lead/participate in these groups, or taking deliverables off of employees plates who engage in these groups. Make sure you’re not asking your team to work for free to improve the culture of the organization.
Review hiring practices to reduce bias and create more equitable hiring processes. Partner with organizations like Glassdoor’s DEI section, where employees share insights on inclusivity in hiring.
Resource: Refer to The Diversity Advantage by Ruchika Tulshyan, which provides a guide on building inclusive workplaces and developing a DEI strategy.
4. Implement Professional Development Programs
A strong company culture is one where employees feel they have a future and are encouraged to grow. By investing in professional development, companies show they value their employees’ personal and career advancement.
Actionable Steps:
Offer a stipend for training and education, which employees can use to take courses, attend workshops, or obtain certifications relevant to their roles.
Establish a mentorship program where junior employees are paired with more experienced colleagues. This creates opportunities for knowledge sharing and career growth.
Schedule regular performance reviews focused on growth and improvement rather than just results. This shows employees that their development is valued by the organization.
Resource: Explore Drive by Daniel H. Pink, which emphasizes the importance of autonomy, mastery, and purpose in creating a motivated workforce.
5. Celebrate Employee Contributions and Milestones
Recognizing and celebrating employee achievements fosters a culture of appreciation and respect. Employees who feel valued are more likely to remain engaged, motivated, and loyal to the organization.
Actionable Steps:
Establish an employee recognition program where employees can be nominated for their contributions. Some organizations use platforms like Bonusly to simplify and encourage peer recognition.
Celebrate birthdays, anniversaries, and key achievements with small gestures or rewards, such as personalized messages or bonuses. Public recognition of these moments makes employees feel appreciated.
Host regular team-building events to foster camaraderie and celebrate accomplishments together. For remote teams, virtual events like trivia games or cooking classes can be just as engaging as in-person gatherings.
Resource: Check out The Carrot Principle by Adrian Gostick and Chester Elton, which explores the power of employee recognition to drive motivation and build a positive workplace culture.
6. Embed Purpose and Values into Daily Work
Companies with strong cultures embed their mission and values into their everyday operations, creating a sense of purpose for employees. When employees understand how their work contributes to a larger mission, they are more likely to feel fulfilled and committed to their roles.
Actionable Steps:
Develop a clear mission statement and communicate it consistently. Employees should know the “why” behind their work and how it supports the company’s mission.
Integrate values into performance reviews to emphasize their importance. For example, if collaboration is a core value, assess and reward collaborative behavior.
Encourage volunteering and community engagement to build team morale and foster a sense of purpose. Many companies offer volunteer days or organize company-sponsored charity events that reflect their core values.
Resource: Explore Start with Why by Simon Sinek, a powerful book on the role of purpose in driving both individual and organizational motivation
Wrapping Up
Improving company culture is an ongoing process that requires commitment, communication, and regular assessment. By implementing open communication channels, prioritizing work-life balance, fostering DEI, offering professional development, celebrating achievements, and embedding purpose, companies can create a more positive, inclusive, and motivated workforce. These steps are not just about making employees happy; they are about creating an environment that promotes productivity, loyalty, and growth.
Remember: a great company culture is a collaborative effort. Leaders must model the behavior they want to see, and employees should feel empowered to contribute to cultural improvements. By taking these steps, companies can establish a culture where employees feel valued, fulfilled, and engaged, leading to long-term success for both the individuals and the organization.
Bonus resource: Check out 52 Weeks of Impact for more support and information on how to assess and improve your team’s experience.
