Written by Rachel Schremp, Senior Consulting Associate
Corporate culture, company culture, organizational culture, workplace culture – I’m sure you’ve heard these classifications before and I would bet you are here because you want to learn a little more about them. So, what exactly is corporate culture and why is it important? How does one build a positive and healthy culture in the workplace, and how does that culture stay alive and well when things get tough?
What is corporate culture?
Corporate culture is the culmination of shared values, beliefs, behaviors, and practices that shape the social and psychological environment of a workplace. It impacts how people interact with one another, make decisions, and approach their work. This culture influences everything from ethics and communication to the overall vision and daily atmosphere of the organization. In short, it is the personality of the company in action and it can play a major role not only in whether someone chooses to work for your company in the first place, but also if they choose to stay once they get there.
Why is corporate culture important?
Some experts compare the culture of an organization to being the “glue” that binds important team elements together such as cohesion, informing processes, and innovation. And if not taken care of, that glue can start to dry out and these pieces will begin falling apart.
According to Harvard University, having a healthy culture within the workplace equates to happier and healthier employees, which means less turnover and higher productivity. Given the amount of time we spend at work – upwards of 90,000 hours over the course of a lifetime! – why not make sure that time is spent well and in an environment where you’re happy? Believe it or not, this can have a major impact on a company’s success.
So, how do you know if you have a healthy workplace culture or if it could use some improvement? There are some obvious signs that you might want to have a workplace culture intervention sooner rather than later. These can include:
- Employee turnover is high
- Productivity is low
- Trust and support between team members is lacking
- Communication and transparency are minimal or non-existent
- Workloads are high and expectations are unrealistic
- General lack of pride and purpose in the work being completed
The leader’s guide: How to build a healthy corporate culture
Leaders shoulder quite a bit of the corporate culture load because they set the tone for their teams. There are several ways leaders can help improve or build a healthy culture within their teams and organization which can include:
1. Set core values and commit to them
An organization’s core values aren’t something to set and forget– you need to breathe life into them and live them. They play a big role in the ultimate leader’s guide to corporate culture, serving as the foundation to build all of the other pieces around. Use them to guide the behaviors of leadership and the organization as a whole. Better yet, get the whole organization involved in selecting them by leveraging surveys and focus groups. It’s worth noting that values are more meaningful when employees have had a hand in creating them.
2. Recognize and reward wins
Getting recognition for a job well done is always appreciated whether at your job or outside of work. When it comes to corporate culture, this recognition – or lack thereof – can have a major impact with 69% of individuals saying that they would likely work harder if their efforts were recognized. So be sure you are appreciating everyday wins, even if they are small. The recognition does not have to be over the top, either. Even a quick email or a note on a desk shows that you see what your employees are doing and you appreciate it. This brings positivity and pride in accomplishments into the workplace.
3. Give feedback and provide autonomy
Everyone likes feeling confident in the work they are doing. Building this up within a colleague or subordinate can be accomplished simply by leaders providing tangible feedback or advice. Additionally, give them space to accomplish a task the way they feel most comfortable doing so. Leaders should not micromanage and hover, but instead empower their employees to explore and work through solutions on their own.
4. Promote psychological safety and trust
Having employees weigh in on the organization’s mission and values, giving proper recognition, and providing feedback are all factors that lead to the creation of a healthy, trusting corporate culture. Having an environment that embraces transparency and welcomes ideas and opinions will instill a true sense of trust and psychological safety within employees.
As a leader, don’t shut them down or box them in – make sure to give your employees a space to use their voice and grow. Providing growth and development opportunities that allow employees to speak up without fear of repercussions will ensure your corporate culture thrives for years to come.
5. Set up committees and programs to maintain culture
A culture committee is a great way to help keep employees engaged in various ways across the organization. Here at Talogy, this committee initiates company-wide activities that are meant to be fun and encourage a sense of belonging. Additionally, our culture committee is involved with new employee onboarding, ensuring that they feel at home from the start while also serving as a go-to resource that is committed to the well-being of all employees throughout their tenure.
How to maintain corporate culture during challenging times
A lot of organizations go through tough times or periods of difficult change, and it is important to maintain a positive corporate culture no matter what circumstances the business is experiencing. This positive culture is key to keeping current employees uplifted and comfortable. Once you’ve put in the time and effort to create this culture, the last thing you want to see is for it to wash away due to extenuating factors. To help keep your organization’s corporate culture intact, leadership should:
- Be transparent about the changes and resulting expectations, clearly communicating what to expect as a result of these events.
- Continue to celebrate wins and reward acceptance of changes.
- Don’t lose sight of employee development opportunities.
- Focus on employee well-being and engagement, encouraging employees to take time off if needed to reset.
Resilient corporate culture starts with leadership
Having a resilient corporate culture is critical, so leaders should not let the importance of these tasks get lost in the strain and challenges of each day. Leadership should strive to ensure employees feel comfortable and look forward to coming to work, not dread it because they feel like they are surrounded by a toxic atmosphere. Managers and leaders have a large responsibility to ensure employees understand changes and challenges when they occur and what it means for them. Communication, transparency, and care for employee well-being can go a long way to maintain a healthy corporate culture.
About the author: Rachel Schremp is a Senior Consulting Associate at Talogy. She received both her M.A. in TESOL and her M.A. in Industrial/Organizational Psychology from Southeast Missouri State University. Rachel has a wide range of interests and experiences including training, leadership, and organizational development, and company culture. At Talogy, she enjoys managing talent development programs for her clients and helping them select candidates with the right fit. Collaborating with others and facilitating initiatives to foster a positive culture give her the opportunity to stretch her creativity and social skills, two things she tries to do as often as she can.
