How to Improve Company Culture: A Leaders Guide To Success

When a leader is determined to improve company culture, it directly impacts employee behaviour, engagement, and productivity. A supportive and positive culture helps employees thrive and propels business success. Research indicates that 88% of employees believe a healthy company culture boosts engagement and overall organizational performance. Employees who feel connected to their workplace are more likely to be motivated and productive.

However, poor company culture can lead to many problems, including high-stress levels. According to the American Institute of Stress, 83% of U.S. workers suffer from work-related stress, contributing to over one million missed workdays annually. Addressing and improving company culture is crucial to reversing this trend and creating a supportive work environment.

What is Culture Management?

Culture management involves developing, maintaining, and evolving an organization’s core values, beliefs, and practices to influence employee behaviour positively. It sets the tone for how employees interact, make decisions, and align with the company’s mission. Effective culture management often requires intentional strategies to consistently uphold values, even as the organization grows and changes.

Leading cultural change can be a complex process. Many organizations hire culture managers or consultants to guide them through evaluating current practices and introducing new, sustainable values and behaviours. With effective culture management, companies can create an environment that fosters higher levels of job satisfaction, better teamwork, and increased overall performance.

Why is it Important to Improve Company Culture?

Changing culture at work is not just about increasing employee satisfaction—it’s also about driving tangible business outcomes. A healthy culture:

• Reduces employee turnover and associated costs.
• Enhances innovation by creating a space where employees feel safe to express ideas.
• Attracts top-tier talent who align with company values.
• Increases overall productivity and efficiency.

Investing in culture is ultimately investing in the long-term success and sustainability of the business. Organisations prioritising cultural development often outperform those that don’t, as a strong culture is a competitive advantage that is difficult for others to replicate.

Practical Strategies to Improve Company Culture

Company culture must adapt to meet evolving employee expectations and business needs. Below are several strategies to help leaders effectively improve company culture:

1. Promote transparency

Transparency is essential for building trust within the organisation. It fosters open communication between employees and leadership, ensuring everyone feels informed and involved. Companies can promote openness by:

• Regularly sharing company updates and goals.
• Communicating decisions and the rationale behind them.
• Encouraging an environment where employees feel comfortable asking questions and expressing concerns.

When employees understand the “why” behind decisions and feel their voices are heard, they strengthen their connection to the organization and reduce ambiguity, leading to higher engagement. According to a report from Harvard Business Review, transparency is one of the most potent elements of a healthy workplace culture.

2. Align Core Values with Actions

Core values are the guiding principles that shape how a company operates. However, if these values are not practised consistently, they lose meaning. Leaders must evaluate core values to ensure they align with day-to-day operations and are upheld in every decision. Consider the following steps:

• Conduct regular assessments to ensure values are still relevant.
• Use values as a benchmark when making business decisions.
• Communicate values clearly during onboarding and reinforce them through training.

For values to be practical, they must resonate with employees and guide behaviours at every level of the organization. Studies show that companies with robust and actionable core values enjoy higher employee satisfaction and retention.

3. Provide Constructive and Balanced Feedback

Feedback is a cornerstone of professional growth but must be delivered thoughtfully. Too much feedback, especially when it is negative, can overwhelm employees and lead to burnout. To ensure feedback is constructive:

• Focus on behaviour rather than personal attributes.
• Provide feedback in real time, rather than waiting for formal reviews.
• Balance constructive criticism with positive reinforcement.

Research from Gallup suggests that employees who receive meaningful feedback are four times more likely to be engaged at work. Creating a continuous, balanced feedback culture helps employees feel supported in their growth and development.

4. Encourage Team Collaboration

Teamwork is the foundation of organizational success. When employees work together effectively, they can accomplish more than the sum of their efforts. Leaders can promote collaboration by:

• Breaking down silos between departments through cross-functional teams.
• Hosting regular team-building activities and workshops.
• Encouraging shared goals and rewards for team success.

Studies show that collaboration can increase productivity by up to 25% in complex work environments. A culture that prioritizes teamwork enhances creativity and fosters a sense of community, making employees more motivated and engaged.

5. Develop a Clear Improvement Plan

Improving company culture requires a structured approach. An improvement plan provides a roadmap for the desired changes and establishes clear goals, timelines, and responsibilities. An effective plan should:

• Include input from various stakeholders to ensure buy-in.
• Define specific milestones and how progress is measured.
• Provide a timeline for implementation and review.

A clear plan helps ensure that cultural initiatives are organized, actionable, and measurable. Without it, efforts can become disjointed, leading to confusion and a lack of

6. Celebrate. Small Wins

Celebrating achievements, both big and small, is a powerful motivator. Recognition fosters a positive work environment and reinforces the behaviours and achievements that the organization values. Consider these strategies:

• Publicly recognize individual and team accomplishments.
• Create a reward system that aligns with company values.
• Share stories of success to inspire others.

Recognition doesn’t always have to be formal or monetary. Simple gestures like a thank-you note or a shout-out in a meeting can go a long way in making employees feel appreciated.

7. Prioritize Employee Well-being

Employee well-being is fundamental to a positive culture. Employees who feel physically and mentally supported are more productive and loyal to the organization. Implementing wellness programs, flexible work arrangements, and mental health support can:

• Reduce absenteeism and turnover.
• Enhance focus and productivity.
• Create a positive reputation that attracts top talent.

Organizations prioritising employee well-being are often seen as more desirable workplaces, leading to higher engagement and lower turnover.

8. Create Opportunities for Growth and Learning

Employees want to feel that their careers are progressing. Organizations that provide opportunities for learning and development see higher engagement and retention rates. Offer programs such as:

• Professional development workshops.
• Access to online courses and certifications.
• Mentorship programs that connect employees with experienced leaders.

By investing in employee growth, companies demonstrate their commitment to long-term success, creating a culture that values learning and improvement.

9. Conduct Regular Culture Assessments

Understanding the current state of your company culture is crucial for making informed decisions. Regular assessments provide insights into what is working and where improvements are needed. Techniques include:

• Employee engagement surveys.
• One-on-one interviews with staff at all levels.
• Analyzing turnover rates and feedback trends.

These insights can help shape the following steps and ensure cultural initiatives align with employee needs and organizational goals.

10. Hire and Promote for Cultural Fit

Bringing in new employees who align with the company’s culture is as important as hiring for skill. A good cultural fit enhances cohesion and reduces the risk of turnover. Consider:

• Defining cultural attributes as part of the hiring process.
• Including culture-specific questions in interviews.
• Promoting employees who embody the company’s values.

Hiring and promoting for cultural fit ensures that the people within the organization will reinforce and build upon the desired culture, creating a robust and unified team.

Step-by-Step Guide to Improve Company Culture

1. Assess the Current Culture

Start by gathering data on the existing culture through surveys, focus groups, and interviews. Identify areas of strength and areas that need improvement. Employee feedback is invaluable, showing how the current culture impacts day-to-day work. Using this data to create a baseline to measure future progress and understanding employee perceptions will guide planning and highlight the most critical areas.

2. Define Core Values

Clear, well-defined core values are the foundation of any substantial culture. These values should reflect the company’s mission and vision while resonating with employees. Start by outlining the behaviours and attitudes that the organization wants to cultivate. Once defined, ensure these values are communicated consistently throughout the company. They should be visible in every aspect of the business, from hiring and performance evaluations to daily interactions. Without clear values, efforts to improve culture may lack focus.

3. Set Measurable Goals

Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for your cultural initiatives. These goals should be aligned with both business objectives and employee expectations. For example, set a goal to implement monthly feedback sessions to improve communication. Setting measurable goals helps track progress accountability. When employees see concrete goals and follow-through of cultural initiatives, it builds trust and credibility.

4. Involve leadership

Leadership buy-in is essential for any cultural transformation. Leaders set the tone and act as role models for the desired behaviours. Begin by educating managers and executives on the importance of a positive culture and their role in shaping it. Encourage them to lead by example—demonstrating transparency, openness, and commitment to the defined core values. Leaders should be approachable and willing to listen to employee feedback, showing they genuinely care about their teams. When leadership is fully invested in cultural change, it trickles down through the organization, influencing how employees perceive and embrace the initiative.

Implement regular training sessions on emotional intelligence, communication skills, and conflict resolution to build leadership involvement. This equips leaders with the tools to manage effectively and empowers them to champion the new cultural norms.

5. Communicate Changes Clearly

Communication is the bridge between strategy and execution. To successfully implement new cultural practices, you must communicate consistently and frequently. Explain why changes are being made and how they will benefit the organization and its employees. Use a variety of channels—emails, town halls, one-on-one meetings, and newsletters—to ensure everyone receives the message.

Use inclusive language that speaks to all levels of the organization, avoiding jargon or vague terms. A strong communication plan includes regular updates, opportunities for employees to ask questions, and feedback loops to assess the effectiveness of the messaging. Clear communication helps reduce uncertainty and resistance, fostering a sense of shared purpose and collective progress.

6. Policies and Practices.

Implementing new policies and practices is where strategy becomes a reality. This stage involves aligning daily operations with the desired culture. For example, consider introducing flexible working hours or remote work options to promote work-life balance. If diversity and inclusion are priorities, implement bias training and establish diverse hiring committees. Make sure all policies are documented and accessible to employees.

Align new initiatives with the defined core values and regularly review them to ensure they are practical and achieve the intended impact. Policies should not be static; they must evolve with the organization’s needs and the changing workforce landscape. Regularly seek feedback on these changes to make adjustments as necessary, ensuring they are both fair and effective in supporting the desired culture.

7. Provide Training and Resources

Training is crucial for embedding cultural changes. Employees need the right resources and knowledge to understand and adapt to new expectations. Consider conducting workshops on communication, teamwork, and conflict resolution that reflect the new cultural values. Training should be ongoing rather than a one-time event, reinforcing the desired behaviours over time.

Create comprehensive onboarding programs for new hires that introduce them to the company’s culture from day one. Make resources such as guides, e-learning modules, and mentorship programs readily available. Employees are more likely to embrace change if they feel supported in the transition, so providing ample opportunities for learning and growth is critical to long-term success.

8. Create Feedback Loops

Establishing feedback loops is essential for understanding the impact of cultural initiatives. Use surveys, suggestion boxes, and regular check-ins to gather insights from employees at all levels. The feedback should be analyzed and acted upon to show that the organization values employee input. This iterative process enables the company to make real-time adjustments and course corrections based on what is and isn’t working.

Encourage managers to seek feedback during one-on-one meetings and team discussions regularly. Make the feedback process as transparent as possible by sharing summaries of the feedback collected and how it will be used to inform future actions. When employees see that their voices are heard and changes are made in response, it fosters trust and a more substantial commitment to the organization.

9. Monitor and Measure Progress

Monitoring and measurement are critical to ensure that cultural changes are effective. Set up key performance indicators (KPIs) related to employee engagement, turnover rates, productivity, and satisfaction. Use tools like pulse surveys and cultural health assessments to measure progress.

Analyze the data to identify trends and areas needing further improvement. If specific initiatives are not yielding the expected results, be willing to adapt your approach. Transparent reporting on the outcomes of cultural initiatives helps keep everyone informed and aligned, reinforcing the commitment to continuous improvement. Regularly share these insights with employees to maintain transparency and demonstrate the company’s ongoing investment in building a better culture.

10. Celebrate and Refine

Celebrating big and small successes helps reinforce positive behaviours and maintain momentum. Recognize the contributions of individuals and teams who embody the new cultural values. This could be through formal awards, shout-outs during meetings, or small tokens of appreciation. Acknowledge milestones reached during the cultural transformation journey and highlight the collective effort involved.

However, building and maintaining a solid company culture is an ongoing process. Use feedback and performance data to refine your strategies continually. What works today might need to be adjusted as the organization grows and evolves. By celebrating successes and being willing to refine initiatives, you demonstrate that the organization values continuous improvement and is committed to creating a culture that adapts to the needs of its people.