Workplace culture is often described as “how things are done around here.” But what does that really mean? It’s more than just a mission statement or a set of company values—it’s the lived experience of employees every day. Workplace culture is shaped by leadership, policies, traditions, and even unspoken norms.
A strong culture can be a company’s biggest asset, fostering engagement, productivity, and innovation. On the flip side, a toxic culture can lead to disengagement, high turnover, and even damage to an organization’s reputation. But culture isn’t something that just happens—it’s intentionally built and maintained. In this guide, we’ll break down what workplace culture is, how it develops, and what steps leaders can take to strengthen it.
The Core Elements of Workplace Culture
Workplace culture isn’t just one thing—it’s a combination of several key elements that shape the employee experience:
- Leadership and Management Style
- Leaders set the tone for workplace culture through their decisions, communication, and how they treat employees.
- A culture of trust and respect starts at the top. Micromanagement, lack of transparency, or favoritism can erode it.
- Communication and Transparency
- Open, honest communication builds a culture of trust.
- Organizations that prioritize transparency—sharing company goals, decisions, and even challenges—tend to have more engaged employees.
- Employee Engagement and Morale
- Engaged employees feel connected to their work and the company’s mission.
- Morale is influenced by everything from recognition and rewards to how employees are treated by management and colleagues.
- Values and Ethics in Action
- Every company has a set of values, but the real question is: Are they lived out in daily interactions?
- Organizations that uphold fairness, integrity, and accountability in practice—not just on paper—build stronger cultures.
- Work Environment and Rituals
- This includes office layout, work-life balance policies, and traditions like company events or meetings.
- A workplace that fosters collaboration and inclusion will have a very different feel from one that is rigid and hierarchical.
How Workplace Culture Develops
Culture can be built intentionally—or it can emerge accidentally.
- Intentional Culture: Leadership makes deliberate choices to shape the work environment through hiring practices, leadership development, and consistent reinforcement of company values.
- Unintentional Culture: Without clear direction, culture can form based on individual personalities, office politics, or even the loudest voices in the room. This often leads to inconsistency and confusion.
Culture is not just about what leaders say—it’s about what they do. Employees take cues from management behavior. For example, if a company promotes “work-life balance” but regularly expects employees to answer emails late at night, the real culture becomes one of overwork.
Additionally, employees themselves play a role in culture. Their behaviors, engagement levels, and interactions with one another reinforce (or challenge) the status quo.
Signs of a Healthy vs. Toxic Workplace Culture
Workplace culture can be either a source of strength or a hidden problem that undermines success.
Signs of a HEALTHY Culture:
- Employees feel valued and respected.
- Transparent communication and clear expectations.
- Opportunities for growth and development.
- Leadership models company values.
- A sense of purpose and belonging among employees.
Warning Signs of a TOXIC Culture:
- High turnover and low employee engagement.
- Fear-based leadership or lack of trust in management.
- A lack of accountability for poor behavior.
- Unclear expectations, favoritism, or office politics.
- Employees frequently feel overworked, underappreciated, or disengaged.
Recognizing these signs early allows leaders to take proactive steps before small issues become company-wide problems.
The Business Impact of Workplace Culture
A company’s culture doesn’t just affect employees—it has a direct impact on business success.
- Retention and Recruitment: Companies with strong cultures attract and keep top talent, while those with poor cultures struggle with turnover.
- Productivity and Performance: Engaged employees are more productive, creative, and committed to the company’s mission.
- Customer Experience: A company’s internal culture affects how employees treat customers. A toxic culture can lead to poor service and negative brand perception.
- Financial Impact: Studies have shown that organizations with positive cultures outperform those with weak or toxic cultures in terms of profitability and long-term success.
How to Shape and Improve Workplace Culture
If culture isn’t where you want it to be, what can you do? Here are some steps leaders can take:
- Define and Reinforce Core Values
- Make sure company values are clear, actionable, and consistently demonstrated.
- Values should be embedded in hiring, performance reviews, and daily decision-making.
- Lead by Example
- Employees look to leadership to model behavior.
- If managers and executives don’t live out the company’s values, employees won’t either.
- Encourage Open Communication
- Create channels for honest employee feedback, such as surveys or one-on-one meetings.
- Act on feedback—employees need to see that their voices matter.
- Recognize and Reward Positive Contributions
- Employee appreciation doesn’t have to be expensive—regular recognition, professional development opportunities, and small incentives go a long way.
- Foster Inclusion and Belonging
- A strong culture is one where every employee feels included, respected, and valued.
- Policies that support diversity and inclusion should be more than just a checkbox—they should be part of how business is done.
- Be Willing to Adapt
- Culture evolves as companies grow and change.
- Regularly assess and refine workplace culture to keep it aligned with business goals and employee needs.
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Why Culture Matters Now More Than Ever
Workplace culture isn’t just an HR buzzword—it’s the foundation of business success. Whether it’s intentional or not, every company has a culture, and it directly impacts engagement, performance, and retention.
Why Culture Matters Now More Than Ever
Workplace culture isn’t just an HR buzzword—it’s the foundation of business success. Whether it’s intentional or not, every company has a culture, and it directly impacts engagement, performance, and retention.
Now is the perfect time for business leaders to take a step back and evaluate their workplace culture. Is it fostering collaboration, innovation, and engagement? Or is it holding the organization back?
Small, consistent efforts to improve culture—like prioritizing transparency, recognizing employees, and aligning leadership behaviors with company values—can have a lasting impact.
Want to assess your workplace culture? Start by gathering honest employee feedback or reviewing your leadership strategies. The first step toward change is recognizing the need for it.
CONNOR BOLEWARE, SHRM-CP
HR Advisor, HR Services
Connor is an HR professional with a passion for creating solutions that benefit people as well as business. He brings to Crescent and empact hr a wealth of experience in the healthcare / hospital space, where he managed recruiting and vetting, onboarding, compensation, FMLA, discipline, reengineered and systematized a performance management program for a 200-person organization, the employee life cycle, HR systems, and more.
He is a learner; he focuses daily on broadening his experience and expertise so he can have greater impact on his clients. His interests range from reading, researching health and nutrition, learning more about nature and sustainability, cooking, exercise, and connecting with people.
