Positive work culture is integral to organizational success. From boosting employees' performance and productivity to improving a company's reputation, its impact can easily be felt in all aspects of the organization. Without a positive corporate culture, employees will carry out their duty with little or no loyalty. Commitment, quality of service, and productivity will decline as employees disengage and the effect on the company's bottom line can be profound.

One study on engagement showed that up to $550 billion is lost annually by U.S. companies due to employee disengagement. Excellent company culture also significantly impacts a company's ability to recruit. Statistics show that 47% of active job candidates cite it as the primary driving force for job hunting. Companies hoping to thrive in the highly competitive business world will have to prioritize positive workplace culture. The post-pandemic emergence of the remote and hybrid workplace model makes adopting the right corporate culture even more vital for firms to remain sustainable.

This article will give you insight into the fundamentals of organizational culture and how to create a positive work environment for your team.

What Is Workplace Culture?

Culture is the totality of people's way of life. Workplace culture, however, is a broad term that defines the interaction or interrelationship between companies, employees, and the work environment. At its core, it reflects the brand's behavior, attitude, and value system. Various brands have various interpretations of workplace culture. The important thing is that any interpretation incorporates some of its key elements, which include:

  • Ethics
  • Core value
  • Mission
  • Leadership quality/style
  • Goals
  • Expectations
  • Work environment

Workplace culture is a living, breathing aspect of the company that the employees can feel.

Why Create a Positive Work Culture?

Prioritizing positive workplace culture can significantly impact how employees feel and their long-term commitment to the company. Here are some ways it affects both the employees and the company.

Employee Performance and Productivity

A great workplace culture impacts employees' performance. This increases workplace productivity in the long term. According to Bain, staying engaged boosts employees' productivity by a whopping 125% and will have a significant impact on your bottom line directly. When employees are happy because of how supportive their workplace is, they are energized and even motivated to become more productive. According to research by Oxford University, happy workers are 13% more effective than unhappy ones.


Companies with positive workplace cultures always stand a better chance ahead of other competitors to attract the best talents. Most job seekers look out for companies with excellent workplace culture when applying for jobs. About 46% of job seekers consider this very important, while 88% believe it is relatively significant. However, this is not limited to the job seeker. An estimated 91% of CEOs are willing to hire someone who perfectly aligns with their company culture. No wonder recruiters and Human resources (HR) representatives go to greater lengths to ensure their company culture is upstanding. Having a good company culture can enable a firm to hire top talent, increasing revenue by 33%.

Employee Engagement and Retention

Employees are more likely to jump ship if the overall workplace culture is destructive or toxic. Let's face it; nobody wants a toxic environment regardless of salary structure. However, when employees feel like they're a crucial part of the brand, they're likely to stay and see the business's growth. That said, employees tend to be very loyal if they're well-treated.

Companies with an excellent positive work culture are more likely to retain their employees. This has several ways of adding to the company's values. It builds long-term loyalty, reduces employee absenteeism, and helps business owners cut costs involved in the continuous hiring process.

Brand Reputation

Bad workplace culture can tarnish a brand's overall image. This will impact customer and employee retention/acquisition. According to the CBI, 69% of the U.K. public believes that the most effective way to refine your business reputation is by treating your employees well. Outsiders will quickly make their assessments based on their interactions with your employees and any negative impression can affect the brand's image.

Teamwork and Collaboration

A positive workplace culture builds or reinforces a team and collaborative spirit among workers from diverse backgrounds. Working as a team improves productivity and revenue generation. A successful collaboration due to a healthy culture can remove any differences among team members. This will also enable employees to work without being selfish since they have only one collective goal: the general success of the business.

Reduced Stress and Employees Well-Being

A positive workplace culture positively impacts employees' well-being. Workplace stress is also reduced. This will further increase performance and productivity. Employees' well-being has become especially important in the wake of the COVID-19 pandemic, as workers are now keener about their health and safety.

Giving employees flexible work hours and sufficient time to take care of their health will make them feel valued and supported. It will also increase their success rate, just as recorded in a study carried out by Deloitte Global.

Employee Morale and Job Satisfaction

Positive workplace culture is a crucial recipe for boosting employees' morale. Working in a positive environment improves happiness and well-being, which leads to job satisfaction. A positive culture with an emphasis on wellness, diversity, and inclusion can make employees do more since they'll feel happy and empowered in their work. Additionally, in such an environment, workers will feel encouraged to air their opinions and contribute to issues that could impact the company positively.

How to Create a Positive Workplace Culture

There are no hard and fast rules on how to create a positive work environment. Creating a positive workplace culture involves doing the simple things company executives tend to ignore.

Instill a Culture of Open Communication

Open communication is vital to building team trust and bonding. Companies that operate an open communication policy allow workers to air their opinions in constructive ways, which is very important to achieving work success. Meetings and pep talks are also avenues you can use to teach a culture of open communication among employees.

Create a Safe Working Environment

A positive work environment is a place where workers feel safe. This is very important as it affects how workers carry out their roles daily. A work environment where everyone feels insecure or uncomfortable while working is harmful to the growth of the business. Creating a safe working environment will affect workers' moods positively and inspire productivity.

Provide Meaningful Leadership

Bad leadership always has a way of affecting workflow negatively. One study showed that 6 in 10 people usually leave an organization because of lousy leadership. Therefore, company leadership teams shouldn't be the type that focus on dishing out orders to employees but instead encourage, empower, teach, and train them to perform better.

Develop Organizational Values and Identity

Organizational values are the core beliefs and philosophies with which your company can be identified. Your core values should reflect how well you treat both your employees and your customers. This is always very important for brand reputation and customer and employee retention.

Be Open to Improving on Your Current Culture

Changing your existing workplace culture may not be as easy as it seems, but being open to improving on current cultures goes a long way in demonstrating that your employees' opinions and involvements are vital to you. Employees are happier and more productive where they feel valued. You can get suggestions on how to improve your current workplace culture through meetings, suggestion boxes, and brainstorming sessions.

Create Employee Recognition Programs and Reward Culture Champions

You need to recognize and reward employees who are committed to the company's core goals and values. They're the champions of the company and recognizing their great work will motivate them to do more. Creating an employee recognition program to reward employees for outstanding performances is an avenue to show others the type of positive company culture you want them to emulate. Additionally, other employees will strive to perform better when they know that hard work is rewarded.

Foster a Culture of Meaningful Social Connections

Encouraging meaningful social connections are essential steps to take toward achieving positive workplace relationships. It will be almost impossible to maintain a joyful work environment when employees don't interact with colleagues. You need to provide excursions, team meals, or end-of-year parties to promote social interactions in the workplace.

Encourage Positivity in Thought and Action

Positive thinking helps with stress management and also improves productivity. A workplace where positivity in thought and actions are encouraged is beneficial to the firm. Smiling often, showing gratitude and courtesy, and being optimistic even during difficult situations is essential in promoting positivity daily. Those in leadership positions should lead by example in this regard and others will follow suit.

Prioritize Employees' Well-Being

Employees' well-being is the bedrock on which a positive company culture can be built. For employees to give their best in terms of productivity, they must be sound mentally, physically, and emotionally. Health care opportunities can be provided, as well as breaks during work hours to enhance employee wellness and maximize work-life balance. This is important not only to improve your employee's health but also for excellent brand reputation.

Have Clear Goals and Policies

Having clear goals and transparent policies can go a long way in creating a positive workplace culture. Company goals and policies help workers have a roadmap that will help them monitor their progress and determine how to perform better in their given workspace. It is easier for employees to work effectively when there is something specific to work toward or a clear direction to follow.

The leadership team needs to get involved in the onboarding process of new employees to train them on the company's goals and policies, such as performance management, dress code, and organization culture.

Stay on Top of Your Business Finances With Skynova

While working toward improving the overall company's work culture, there is also a need to pay proper attention to your business finances to enhance business success and profitability in the long run. Skynova's accounting software will help you stay on top of your business finances by helping you keep track of everything through automated transaction records, cash-flow management, invoice generation, and accurate financial record-keeping.

Notice to the Reader

This content details approaches to building a positive corporate culture. It may not work in your specific situation. Seek an expert opinion to know more about this topic.