Healthy Company Culture: What It Is and How to Build It

The way organizations function has changed considerably over the years. People now work with each other, instead of working FOR another person. Businesses pride themselves on their “company culture”.

But what exactly is company culture? How is it important for your business? And how do you build a healthy company culture? Let’s answer these questions and more in this short read. 

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What Is Company Culture?

Company culture is the shared set of workplace beliefs, values, attitudes, standards, purposes, and behaviors that define how work gets done. It encompasses both formal systems, like communication tools and policies, and informal behaviors, such as daily interactions among employees and the overall atmosphere within the organization.

• Formal Systems: These include the structured elements of the workplace, such as the use of specific software for communication, established workflows, and clearly defined procedures and policies. These systems provide a framework within which employees operate, ensuring consistency and efficiency in how tasks are performed.

• Informal Behaviors: These refer to the unwritten rules and social norms that influence how employees interact with one another. This can include how approachable managers are, the degree of camaraderie among team members, and the general tone of day-to-day interactions. These behaviors shape the social fabric of the workplace, contributing to a sense of community and belonging.

Essentially, company culture is the personality of an organization, something that can be felt by both employees and outsiders alike. It's the intangible essence that makes a company unique, influencing everything from how decisions are made to how employees feel about their work. A strong, positive culture can enhance employee satisfaction, drive engagement, and foster loyalty, while a negative culture can lead to dissatisfaction, high turnover, and reduced productivity.

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Why Does a Healthy Company Culture Matter?

Here are some compelling reasons why cultivating a healthy company culture matters.

• Employee Engagement: A healthy company culture significantly boosts employee engagement and productivity. According to Gallup, companies with high levels of employee engagement are 21% more productive than those with lower engagement levels.

• Creativity and Innovation: A supportive culture fosters creativity and innovation. Engaged and productive employees are more likely to bring fresh ideas to the table, giving companies a competitive edge with higher-quality products and services.

• Morale and Retention: A positive company culture improves employee morale and retention rates. Engaged employees are 87% less likely to leave their organization, reducing the costs associated with recruiting and training new hires.

• Attracting Top Talent: A strong company culture attracts top talent. Candidates are drawn to organizations known for their strong values and supportive environments.

• Financial Performance: Healthy company culture correlates with better financial outcomes. Companies with strong cultures have better financial returns, with research showing significant outperformance in profitability.

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How to Build a Healthy Company Culture

Here are 10 tips we’ve collated to help you build a healthy company culture in your organization.

Find People Who Fit

Hire individuals who align with your organization’s vision and values. This ensures that new hires will contribute positively to your company culture, bringing in fresh perspectives while maintaining core principles.

Integrate Values

Incorporate your values into everyday activities by teaching these values during onboarding, emphasizing them in meetings, and ensuring they are reflected in external communications and decision-making processes. This integration helps to keep your values at the forefront of daily operations.

Foster Feedback

Establish continuous feedback systems to move beyond annual performance reviews. Regular, meaningful feedback can guide improvements, enhance satisfaction, and ensure that employees feel heard and valued.

Adapt to Changes

Update your culture to meet evolving business landscapes and employee expectations. By basing your culture on timeless principles rather than rigid practices, you ensure it can adapt to changes, keeping it relevant and effective.

Change Broken Culture

Identify and address cultural issues by articulating aspirations, selecting supportive leaders, engaging in open conversations about cultural changes, and aligning organizational structures to reinforce desired changes. This proactive approach helps in transforming a dysfunctional culture.

Reward Employees

Set up fair compensation and recognition systems. Adequate pay and timely rewards for contributions motivate employees and reduce financial stress, fostering a more positive and productive work environment.

Recognize Contributions

Balance recognition between individual and team achievements. Providing immediate and specific recognition for a job well done encourages continued effort and loyalty, reinforcing a culture of appreciation.

Retain Talent

Communicate clear company values and help employees envision their future with your organization. This openness builds trust and reduces turnover, ensuring that your top talent remains engaged and committed.

Champion Teamwork

Promote collaboration and relationship-building through team-building activities and creating spaces for brainstorming and conversation. Strong relationships within the team enhance the overall work environment and drive collective success.

Embrace Flexibility

Offer flexible work arrangements to improve work-life balance. Flexible schedules, remote work options, and unlimited vacation time can foster loyalty and satisfaction, showing employees that you respect their need for flexibility.

Conclusion

An important part of building a healthy company culture is fostering an environment that helps employees grow, instead of being stuck in the same rut over a long period of time. Businesses can do this by enabling their employees to upskill themselves.

This, however, often poses a challenge. Training is viewed as an expensive, repetitive process, often by both managers and employees. Unless, of course, you have UJJI by your side. 

We at UJJI specialize in creating AI-powered micro-learning pathways that you employees can use to train themselves anywhere, anytime and without the need for supervision. 

A great example of UJJI helping a young organization upskill their teams in record time, leading to an increase in market-share and revenue can be found in the Connected case study.

If you’re looking to enhance your company’s training experience, and to include training as a means for your employees to have a well-defined career path, book a demo with us today.