Shape Your Workplace Culture to Inspire Your Employees

There's probably no business that doesn't have a work culture: current trends show that business owners want to hire people who share their values. While the reasons may differ, the general idea is disgustingly obvious: it is easier to find a common language with people who stick to the same principles. Surprisingly, potential employees respond accordingly: recent findings claim that almost half of all job seekers (46%) consider company culture as an integral part of the working process and deem it important. Another such statistical tithe mentioned on the same site provides the following insight: the majority of both entrepreneurs (94%) and job seekers (88%) are convinced that a healthy workplace culture is a vital factor that ensures overall success.

However, it's not at all clear what a healthy workplace culture must include, and we haven't yet identified what's best for your team members and what isn't. Are you in the mood for a brief investigation? You'd better be because we're about to start.

Cracking the Code of Company Culture

Workplace culture isn't a term that was generated yesterday by a couple of remarkably agile marketers hoping to crank out a set of useless articles and make business owners splurge money in all directions in their race for success. Although it may sound more or less plausible, the real history behind the term is not at all that dubious. In 1951, Canadian psychoanalyst Elliott Jaques released a book titled The Changing Culture of a Factory, where he first introduced the study of corporate group behaviors. In his parlance, the culture of a factory is its customary and traditional way of thinking and doing of things, which is shared to a greater or lesser degree by all its members, and which new members must learn, and at least partially accept, in order to be accepted into service in the firm.

Independently, other sociologists and business theorists offered their interpretations. If you're curious to see what other scientists concluded, you can look up Terrence E. Deal and Allan A. Kennedy, Edgar Schein, Ravasi and Schultz, Geert Hofstede, or McHale. As of now, various definitions exist, but the great minds fail to achieve consensus, so the choice is up to you: you can breeze through the book and pick the interpretation, which grows on you more.

The components of a healthy workplace culture are somewhat more conclusive. Cătălina Radu, a professor from Bucharest University of Economic Studies, revealed the foundations for a positive organizational culture in her 2023 paper Fostering a Positive Workplace Culture: Impacts on Performance and Agility. While the scientist provides an extensive report and scrutinizes the problem from multiple angles, she primarily focuses on the principles of positive psychology, which aligns with a positive workplace culture in terms of employee well-being, personal growth, and recognition. Additionally, it encourages mindfulness, gratitude, and strengths-based approaches to foster a more positive work experience for all team members. In the same paragraph, Radu presents the PERMA model, highlighting various facets of personal fulfillment. The PERMA model consists of the following components: P stands for Positive Emotion, E means Engagement, R is for Relationships, M denotes Meaning, and A indicates Accomplishment. When all the parts are in chime with each other, you can commend yourself: chances are you have created a perfect workplace culture.

Loyal by Design

The PERMA model may have clarified a few things, but it didn't fully explain why people choose to stay. Luckily, we dug up some more data.

In 2024, the Society for Human Resource Management (SHRM) published a voluminous 18-page report The State of Global Workplace Culture in 2024. This extensive study highlighted the most — and, perhaps, the least — expected topics. You're welcome to read it in full, especially if you're directly involved with HR (or send it to your HR manager), but we'll provide only the cherry-picked discoveries.

For instance, the experts state that company culture influences job satisfaction and employee loyalty, though the effect varies by country. In Brazil, for example, just 8% of people working in environments with a good or excellent culture are actively seeking new opportunities, compared to an average of 15% across 19 countries. Conversely, 69% of Brazilian employees in poor or terrible workplace cultures are looking to leave, higher than the overall average of 57% among respondents in similar conditions. The link between workplace culture and the desire to leave is particularly pronounced in Brazil, Mexico, and Canada.

On a more positive note, employees who view their organizational culture in a favorable light are more loyal and more likely to actively promote their workplace to others. More than 80% of employees in organizations with a strong, positive culture say they would recommend their employer to friends, family, or job seekers. In stark contrast, only 4% of those working in organizations with poor cultures say the same.

Retracing our steps and returning to the original topic enunciated in the title, we should explain the key reasons for employees to stay. According to that same study, the decision to stay or to leave lies with the workplace culture adopted at the office. Those who view their organization’s culture negatively and are seeking new opportunities often mention poor management, unfair treatment, lack of empathetic leadership, and low prioritization of employee well-being — alongside inadequate pay — as their main reasons for leaving. On the other hand, employees who rate their workplace culture positively tend to cite limited career advancement, lack of professional development opportunities, subpar benefits, and insufficient flexibility — apart from pay — as their primary concerns. Similarly, when examining why employees choose to stay with their current employers, HR professionals from SHRM noted significant differences between those who work in positive and negative company cultures. For employees in organizations with a strong, positive culture, fair treatment, and job security are the leading reasons they remain. Flexibility, a supportive culture, and effective management also play a major role in retention — often ranking even higher than competitive pay. Employees who view their organizational culture in a negative light cite fewer reasons.

Top reasons to leave and to stay by SHRM

All in all, based on the findings from the study conducted by SHRM, we can safely conclude that positive workplace cultures contribute to better employee performance, enhance satisfaction, and frequently entail positive organizational outcomes as as innovation and productivity.

Culture That Cares

It all boils down to one simple thought: keep your team happy if you want to achieve astounding results and peak performance. The recommendation sounds good but more than a little vague, that's why in this paragraph we will try to equip you with practical knowledge and clear, concise directions.

• Prevent employee burnout. Perhaps it would've been better to mention psychological safety, professional growth, or recognition, but burnout is a more pressing issue than any of us might think. According to Dr. Bryan Robinson's article on Forbes, job burnout has hit an all-time high benchmark of 66%. Burnout might be a sink-or-swim case, but as an entrepreneur, you can help your team overcome the condition: it's in your power to foster a supportive environment that promotes healthy work habits, offers flexible work arrangements, and provides access to mental health resources along with open communication and recognition programs.

• Foster psychological safety and trust. Demonstrate your confidence in employees by giving them the flexibility to decide when they complete their work, allowing them to perform at their peak. Besides, it's only beneficial for the business owner to see the team working in an environment where they feel safe to take risks, make mistakes, express opinions, and engage in discussions without the fear of backlash.

• Engage 'em. Engaged employees can drive you to the stars: certain findings reveal that high employee engagement leads to 202% higher organizational performance. The thing is that engaged employees are more likely to innovate and collaborate, which consequently contributes to productivity and reinforces the company's values.

• Encourage inclusivity and diversity. Embrace people from all backgrounds: their experiences can be so unique and unpredictable that they will transform your approach to work and provide revelations beyond your understanding. Keep in mind that both management and employees drive change by recognizing the importance and benefits of building a diverse and inclusive workplace.

• Show appreciation. Recognizing and rewarding employee contributions — both formally and informally — is a vital aspect of a positive workplace culture. Consistent appreciation fortifies desired behaviors, and celebrating achievements boosts morale and motivates employees to perform at their best.

• Empathy is key. Thomas Jefferson's wise strategy in working with people was listening to them and showing empathy. While Jefferson's other views may seem outlandish and obsolete, this technique still stands: people like being heard; they feel supported when they're listened to and see action. At this point, your HR team should embrace the idea and create an open-minded environment where employees can professionally express themselves.

• Let them grow. Your team's growth is as important as that of your team. Inspire your employees to develop professionally, showing them that they can advance in their careers through training programs, mentorship, and skill-building initiatives.

It isn't an exhaustive list of techniques, only a general outline that can define the right direction. You can implement these strategies into your workplace culture or add a few more aspects, focusing on employee satisfaction and expectation readouts.

Wrapping Up

The workplace culture reigning at your office is a clear marker of success, as it drives employee engagement, fosters innovation, and builds trust across all levels of the organization. By prioritizing values such as inclusivity, recognition, communication, growth, and well-being, companies can create environments where people thrive. As the modern workplace continues to evolve, organizations that intentionally shape their culture will be better equipped to adapt, retain top talent, and achieve sustained performance.