Organisational Culture: defining and developing your own

Developing an attractive and inclusive company culture is particularly important for small businesses today. In the past, increasing wages would have helped to alleviate the issue. But, in the current economy, many SMEs are simply unable to afford salary rises, and offering an attractive, authentic workplace culture can be a vital employee benefit.

Post-COVID, job seekers have been handed the recruitment reins, with industries such as hospitality seeing a mass exodus of staff, leading to labour shortages and headaches for recruiting managers. Instead, having a well-defined work culture has become one of the best ways to distinguish yourself from competitors and improve employee engagement. It’s also a win-win situation for SMEs. Employees are far more likely to thrive within a supportive, conflict-free work culture, with effective leadership delegation leading to new ideas and greater business success.

In the below article, we’ll go through how to cultivate your own unique organisational culture, including what to avoid and the benefits that can result.

What is organisational culture?

Organisational culture is what reflects a company’s personality, shapes day-to-day interactions, guides long-term goals, and influences how clients or customers are treated. It should align with a company’s core values, as well as its mission statement and expectations. A strong culture fosters a positive environment where employees work toward shared goals, while a toxic culture can lead to burnout, high turnover and negative employee reviews.

That being said, company culture shouldn’t be rigid. As Ben Elliott, co-founder of Found By Few, explains, culture should be rooted in values and allow employees to contribute and shape it. Whether an organisation has a flat hierarchy or a mentorship-driven approach – the key is creating a culture that supports an organisation’s unique vision.

Why is organisational culture so important?

A strong organisational culture can lead to more engaged employees who are more likely to stay longer, in turn reducing turnover and building a more stable workplace. For businesses, this means increased productivity, as motivated staff will work harder and contribute more effectively to overall success.

Moreover, a positive culture will improve your recruitment efforts. As more job seekers prioritise a supportive work environment over salary, companies with a strong culture will stand out – attracting more professionals who align with your values.

Knowing your brand personality will also make it easier to narrow down the type of employees who will fit in well with your company. It might sound idealistic, but all of these benefits are genuinely possible with a strong company culture. For example, a smart way of ensuring staff are brought into the process is through creating Employee Resource Groups (ERGs), which allow team members of certain backgrounds to engage authentically with cultural change at your organisation.

How to create a great company culture in 8 steps

Step 1: Define your mission and values

Your mission statement is the first step to building your culture. By laying out a clearly defined destination for the workforce, mission statements establish a shared goal for employees to work towards – massively influencing their attitudes towards their jobs.

As for your core values, these are typically presented as a list of five or six “character traits” for your business and act as instructions for staff and managers on how to conduct themselves while working.

Naturally, a company’s values – when implemented correctly – will play a huge role in shaping its culture. If the workforce is visibly striving to embody principles (eg honesty, integrity and inclusivity), this will create a harmonious organisational culture where everyone shares the same moral code.

Step 2: Align your culture with your values

Company culture plays a significant role in putting your values into practice. This includes establishing how employees interact, make decisions and approach their work. A strong culture ensures that your values are reflected in your everyday actions – from teamwork and communication to how you handle challenging situations. When aligned with the company’s mission, these shared values create a united environment where employees all work towards common goals.

Another important component of this is values-based leadership. For example, if transparency is one of your core values, a leader should demonstrate this through open communication to foster trust and collaboration. Similarly, a leader who demonstrates empathy and respect will create a more inclusive and supportive workplace, motivating employees to do the same. This approach will help strengthen the alignment between values and culture, as well as boost employee morale.

Step 3: Hire for cultural fit

Finding the perfect cultural fit is nearly impossible, but it’s also a task worth doing. After all, 81% of hiring managers believe a candidate is unlikely to leave an organisation where they are a good cultural fit.

Take a smart approach to your hiring strategy by assessing candidates’ cultural aptitude as well as their skills, such as tailoring interview questions to reflect your values or conducting group interviews to see how well each candidate works in a team.

Be wary of seeking a “perfect fit”.If you are a group of extroverts interviewing an introvert, for example, don’t get hung up on whether or not they’ll be keen to join your after-work socials. Their different personality will likely be a valuable trait that is currently missing, which can help grow your culture

Step 4: Implement culture fit during onboarding

Even if a candidate impresses during the interview, they won’t just fall into place and become a cultural ambassador for your company.

New hires have to learn your organisation’s way of doing things. You can do this by setting up an introductory workshop or a welcome day to familiarise new employees with your company’s beliefs and values. That way, they can immediately see how your organisation’s culture might differ from their previous role – helping them to align accordingly.

Step 5: Build a sense of community

This includes organising team-building activities, social events or ERGs to strengthen to relationship and create a sense of belonging among your team.

You can also encourage participation in volunteer programs or community service projects, such as group clean-up days at local parks, supporting food drives or partnering with shelters and non-profit organisations to help those in need.

Moreover, consider regular check-ins or informal gatherings to maintain open communications. Allowing team members to share their thoughts will make them feel valued and engaged, ultimately leading to increased job satisfaction and retention.

Step 6: Recognise and reward hard work

Recognition is a powerful driver of employee engagement, with 69% of workers saying they would work harder if they were better recognised.

Introduce a structured recognition program that celebrates both individual and team achievements, whether it’s through a gift, a story featured in the company newsletter or just a shout-out in meetings or department channels.

Moreover, consider peer-to-peer recognition initiatives, where employees can nominate colleagues who demonstrate the company’s values. This will help create a supportive environment and encourage everyone to actively contribute to the culture.

Step 7: Offer learning opportunities

Employees who feel supported and see growth potential are more likely to stay engaged and committed to your organisation. Offering different development opportunities, such as workshops, mentorship programs and online courses will help employees improve their skills and broaden their experience.

According to an article by LPI, 50% of the workforce will need reskilling by 2025, so it’s important to invest in ongoing training and development initiatives. Research by Bersin by Deloitte revealed that learning organisations are 92% more likely to innovate, have 26% greater ability to deliver quality products and have 37% greater employee productivity.

Step 8: Regularly review and evolve

Once you’ve set up your organisational culture, it’s important to maintain it through consistent communication, regular feedback and active engagement with employees.

It’s important to make sure that values and culture don’t stray away from each other, as this can pose a risk of disengagement, higher turnover and a decline in employee morale. Sometimes, a culture change is needed to realign an organisation’s practices with its core values, such as revisiting policies, improving communication strategies or introducing new initiatives that reflect the desired culture.

Meanwhile, regularly conducting employee surveys or focus groups can provide valuable insight into how your culture is perceived, as well as highlight any areas for improvement. From there, you can use this feedback to refine your initiatives, ensuring they remain relevant and aligned with both employee needs and organisational goals.

What makes a good company culture?

Successful company cultures don’t just get the job done. Instead, it’s about creating an environment where employees feel engaged. These are the key elements that make up a positive company culture:

• Clear values and mission: When employees understand and resonate with your company’s values and mission, they’re more likely to feel a sense of purpose, resulting in greater job satisfaction and productivity.
• Open communication: This will help foster trust and reduce misunderstandings within your teams, leading to better teamwork and collaboration and better business outcomes.
• Employee recognition: Regular recognition and praise for an employee’s hard work will boost morale and motivation, which means more productivity and lower turnover rates, in turn cutting the costs of recruitment and training costs.
• Diversity and inclusion: Hiring a diverse workforce brings a variety of perspectives and ideas, which can enhance creativity and innovation, as well as contribute to more effective decision-making, improved employee satisfaction and a strong connection with a diverse customer base.
• Opportunities for growth: Reskilling is essential right now, so offering employees development resources will help to enhance their skills and advance their careers – equalling to higher engagement, retention and a more competent workforce.
• Work-life balance: The rigid 9-5 working pattern doesn’t work anymore, so supporting employees in achieving a healthy work-life balance helps reduce burnout and stress, resulting in happier, healthier employees who are more productive and engaged.
• Collaboration and supportive leadership: Leaders who embody company values contribute to creating a positive work environment, while strong collaboration strengthens the relationship between team members and improves workflow efficiency.
  

Tools for organisational culture

There are lots of different tools and resources available to help organisations define and implement their culture – particularly for the above steps. Here are four key software types we recommend companies explore:

1. Intranet software

Intranet software, like Happio, Guru and Workvivo, acts as a centralised message board for important updates, such as training programs and employee benefits. It can also be personalised to reinforce company values by celebrating important milestones or sharing financial updates.

2. HR software

These types of software are useful for tracking Diversity, Equity and Inclusion (DEI), staff satisfaction and employee wellbeing. Tools like HiBob and BambooHR can also be used to support onboarding and performance tracking.

3. Employee surveys

Feedback tools like SurveyMonkey and Officevibe help gather and analyse employee feedback. Platforms such as Google Forms can offer a free alternative to these, while CRM systems can offer more professional-looking webforms for stakeholder use.

4. Performance review software

These offer customisable feedback forms that can be aligned with company values, helping managers quickly address issues and improve team dynamics. Mitratech Trakstar, Deel and Primalogik are prime examples of useful performance review software.

Conclusion

Organisational culture refers to the values, personalities and habits that make your business what it is. Successful cultures nurture a supportive and motivational work environment; just as dysfunctional cultures bring about conflicts and low staff morale.

Building a positive company culture is key to attracting, engaging and retaining employees. It also makes the hiring process easier, increases staff productivity and helps to reduce turnover.

By acting on certain initiatives, such as open communication, recognising achievements and providing growth opportunities, you can create a positive work environment where employees feel respected, valued and engaged.

Using the right tools, such as intranet and HR software, will help ensure your culture remains aligned with your goals, driving both employee retention and overall business success.

Our top three takeaways for designing organisational culture are:

1. Organisational culture is abstract. It will naturally evolve alongside your company. Embrace change, and communicate clearly if you feel you are moving in a new direction.
2. All members of your team have a crucial role to play in building company culture. Ensure organisational culture is sprinkled through the people management process to gain – and retain – everyone’s buy-in.
3. Culture is tightly intertwined with company values, which themselves sit alongside mission statements. Be aware that any changes to these supporting players will also affect your overall culture (and vice versa).