How to Build A Positive Company Culture [Complete Guide]

Company culture has a lot to do with the success, struggle and failure of an organization. This is because it affects all elements of a company. Having a positive company culture brings in ideal results and having a poor or toxic company culture can lead to the downfall of a business.

Top companies like Google and Microsoft invest a lot to develop and sustain a positive work culture. They know the importance and value of company culture and they know that it can cost less to invest more in it because of the benefits of having a positive company.

To develop a positive company culture, a company doesn’t have to start with investing millions of dollars. In fact, there are effective strategies you can do right away that doesn’t cost money.

But to begin in knowing how to build a positive company culture, it’s first important to know the factors that affect culture. Here are the factors that affect company culture:

  • Leadership
  • Nature of the business
  • Values, Policies and Ambiance of the Company
  • Clients and external parties
  • Recruitment and selection

Leaders play a vital role in shaping company culture. According to Quartz, through the decisions and actions of leaders, “leaders set the tone for a company’s culture”. The character and skills of the leader can determine the engagement of the workforce, their productivity, commitment and loyalty to the company.

All of those contribute to developing a positive company culture. Without good leadership, strategies to improve culture can be ineffective. A leader needs to understand and be supportive of the employees.

By being employee-oriented, you can be more genuine and effective with empowering and satisfying the workforce which is important in building a positive company culture. Here’s how to build a positive company culture: 

Recognize Employee Efforts

A lot of leaders fail to understand the importance of recognizing the efforts of the workers. In fact, according to Gallup, 65% of employees were not recognized in the last year. Recognition is linked to employee happiness, satisfaction and productivity.

Here are statistics from RewardGateway about employee recognition:

  • 59% of employees prefer to work for a company with a culture that promotes recognition over a higher salary job that doesn’t give recognition.
  • Almost half of employees would leave their organization if they didn’t receive recognition.
  • 34% of senior decision makers don’t know the impact of regular recognition and thanking workers on employee retention.
  • 70% of employees mentioned that morale and motivation would improve if their managers would thank them more.

The want to be appreciated is part of human nature. It’s an emotion that when fulfilled can empower a person to become more engaged. However, the lack of appreciation can do just the opposite. It can cause employees to lose interest in their work. 

Here are the benefits of employee recognition according to Terryberry:

  1. Improved employee productivity
  2. Greater profitability
  3. Improves employee retention
  4. Creates a collaborative work environment
  5. Increases employee motivation

The impact of happiness at work that recognition brings helps build a positive company culture. Here are powerful ways to recognize employees:

  1. Give shout-outs
  2. Give non-cash rewards
  3. Give compliments in public
  4. Take them out to lunch
  5. Encourage peer-to-peer recognition
  6. Say thank you

Value Employee Wellness

According to Forbes, “employee wellness is a foundation for a positive corporate culture”. When employees are feeling great physically, emotionally and mentally, they can better perform at work, be at a better mood and contribute to a harmonious work environment.

If employee wellness is taken for granted, employees can come to a point wherein they are suffering from severe stress. Stress can cause productivity and quality of performance to plummet.

Moreover, stress also impacts the overall health of an individual. It can cause higher absenteeism and turnover rates and can also cause employee conflicts. Employee conflicts can destroy a positive work culture

It’s important to also implement strategies for employee wellness for the workers to better know how to deal with stress and become healthier. 

Here are statistics about employee well-being:

  • 44% of workers reported feeling burnt out at work. – Forbes
  • The top 2 chronic health conditions that contributes in health-related costs are depression and obesity – SFM

Promote Work-life Balance

Work-life balance has been a trending topic among corporations. According to Gettysburg, a third of our lives will be spent at work. However, with advancement in technology and better appreciation for work-life balance, other companies, even large ones like Microsoft, are making the movement of reducing work hours or offering flexible work schedules.

By initiating a 4 day workweek, Microsoft’s productivity improved by 40%. By promoting work-life balance, employees get to have more time for their family, friends and for taking better care of themselves. 

This means that by promoting work-life balance, in turn, you get a happier, more productive and more engaged workforce. 

Provide the Right Tools and Equipment

Tools and equipment make it easier for employees to do their job. It makes them work faster with less effort. By providing your workforce with the right tools and equipment for them to do their job well, they also commit less mistakes and accidents.

A good example of doing this would be using one of the 6 best payroll software solutions in 2020. Payroll can be a daunting task. By having an automated payroll system, employees tasked for doing it use lesser time and the workforce can also have a predictable pay schedule. 

With how to create a happy workplace, what matters is the condition of the workforce. They make up most of the people in an organization and their productivity is a huge contribution  to the progress of the company. 

By fulfilling the needs and satisfaction of the workers, you not just improve their well-being but you also improve the overall performance of your organization. The quality of the organization is the quality of its workforce. 

Start building a positive company culture today by becoming more employee-oriented.