What is work culture? + How to build a healthy one

Whether we operate in a remote, flexible, or in-office model, work culture impacts everything we do. The effect work culture has on the workplace can be positive or negative, depending on leadership decisions, employee engagement, and other factors.

Understandably, work culture has become more difficult to determine in our increasingly digital world. Flexible work models - new territory for many companies - demand that we redefine what work culture looks like, how it functions, and how to maintain it.

Collaboration platforms play a major role in fostering the right work environment. We'll get into that shortly, but first, let's dive into how work culture is built, how it differs between the office and flexible work models, and the elements you'll need to focus on as you level up your own.

What is work culture?

Work culture is a culmination of a company's values, beliefs, attitudes, and particular behaviors. It's meant to be both a guideline for internal and external interaction as well as a sense of the company's personality - its collective identity and "way of doing things."

Work culture isn'ta collection of free lunches, gift card rewards, awkward selfies, and coupon contests. It's less about activities, rewards, and games and more about how your shared values impact your working environment. These things can be a reflection of a culture that values employee recognition, but should never be the entirety of it.

You can tell a lot about a company's work culture from its mission, vision, leadership style, communication practices, and employee satisfaction. Needless to say, work culture can range from positive to toxic depending on where these aspects fall.

And this isn't a one-size-fits-all concept. For example, a tech company that values pioneering innovation may structure its work culture around risk-taking and experimentation like company-wide hackathons. However, a company that focuses on customer service may find empathy and responsiveness more fitting for its industry by supporting employees and creating open communication channels where it's easy to ask for help.

The impact of work culture

The state of your work culture can affect your company's success and your team's well-being. A positive work culture can boost productivity and motivation and increase employee satisfaction. A toxic work culture, on the other hand, can boost turnover rates and employee burnout and create a negative impression of the brand.

Positive work culture

A positive work culture is the result of carefully considered values and processes. Here's how those little details come together to change your business:

• Employee retention:When your team feels valued, respected, and motivated to perform their best, they're more likely to stay with the company for the long haul. This lowers turnover rates and reduces your need to invest in recruiting, onboarding, and other costs associated with replacing an employee.
• Productivity and performance:A positive culture creates engaged, happy employees. This enhances productivity, performance, and, in turn, business outcomes.
• Creativity:If you want creative results, you need to foster an environment where everyone feels comfortable taking risks, collaborating, and thinking outside the box. Imagine a team of technology experts with the drive, support, and freedom to experiment, share ideas, and collaborate freely. That's where iconic products and "quality of life" improvements come from. User experience improvements, new tools, and accessories are the product of a creative team that's encouraged to innovate.
• Brand image, reputation, and attracting talent:Many companies attract top-tier talent because they have a reputation of offering a positive and progressive work environment. Work culture can be a competitive advantage in recruitment.

Toxic work culture

The other side of the coin is something many companies just fall into - it's often an unintentional spiral caused by poor leadership decisions, lack of awareness, or the wrong approach to team management.

When leadership emphasizes short-term results or prioritizes work over flexibility and balance, it can breed a toxic work culture that festers over time. The impact is as negative as one can expect.

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  Employee burnout and turnover: When employees aren't comfortable, they tend to experience higher levels of stress, burnout, and dissatisfaction with their work. This can create a disconnect between employees and their colleagues, leading to higher turnover rates and absenteeism.
• Impact on mental health: Mental health is a vital part of a productive workforce. After all, a workforce is composed of human beings with complex emotions. Work is one of the leading causes of stress, and that can lead to anxiety, depression, and other serious issues. Employers should remain conscious of how the culture at work impacts team-wide mental health.
• Damage to reputation: Some companies are infamous for their work culture. A candidate's first instinct while job hunting is often to check job review sites to see what current and previous employees are saying about their experience. A poor company reputation can turn away potential employees and increase the risk of losing existing ones.
• Legal and compliance risk: An environment that breeds a toxic work culture can also be a gateway for harassment, discrimination, and unethical conduct, all of which put the business at risk of lawsuits and fines.

What makes a positive work culture?

A positive work culture stems from the company's identity, which is rooted in both action and words. A company that claims to care about internal communication, collaboration, and innovation needs to operate by those values or risk cultivating a toxic environment. Here are the components you should consider.

1. Leadership values

Leadership values shouldn't just be posters hanging on the office walls - they should be practiced every day. For example, if innovation is one of your core values, then your team should feel empowered to take risks, innovate, and find the support they need to do so.

For example, Apple's Shared Valuespage showcases its leadership values and provides employee stories that pertain to each value. In each example, Apple demonstrates its commitment to these values, from employee well-being to supporting creativity, diversity, and eco-friendly practices.

2. Communication and transparency

When done right, communication between the team and its leadership fosters trust as well as an open and honest basis for conversations. Employees feel informed, valued, and kept in the loop. When people feel trusted, it creates a sense of belonging, which helps create a cohesive and supportive work environment.

For example, Buffercultivates a culture based on transparency and open communication. The company publicly shares details such as salaries, investments, time off, and even books the team is currently reading.

3. Supporting diversity, equity, and inclusion

Supporting diversity, equity, and inclusion (DEI) goes beyond creating a positive work culture - it can empower teamsto contribute to the company's vision and give way to creativity that's otherwise unachievable in a homogenous environment. Supporting DEI often unearths exceptional talent and promotes a sense of equality and positive thinking.

Businesses looking to foster this kind of culture should apply these values internally through diverse hiring and promotion practices, inclusive policies, and a commitment to constant improvement.

For example, Salesforceis globally known for its commitment to diversity and inclusion, going so far as to promote that commitment in the wider tech sphere by putting forward initiatives such as the Equality Awards, in which they recognize and praise individuals and companies who show a similar dedication to this cause. Through leadership development programs and community engagement efforts, Salesforce creates a work culture that values diversity within its organization and beyond.

4. Growth and professional development opportunities

Employees who feel stuck in their careers start looking elsewhere for opportunities to grow professionally. That's why it's important for businesses to nurture a professional growth path that allows employees to move forward in terms of learning, responsibility, pay, and future contributions. Businesses that do this right often develop training programs to help team members feel supported and empowered to improve and climb the ranks.

For instance, filling an open position by bringing in new hires rather than promoting internally can cause a rift between aspiring employees and their leadership. To do this right, leaders can outline career paths and growth opportunities so employees are clear on their progression. You can also empower your employees to take on new responsibilities and tackle tasks outside the scope of their role - tasks that speak to their professional growth interests.

For example,Google is known for its commitment to employee development. Its "20% time" policy allows employees to set aside a portion of their workweek for projects outside their role's core responsibilities. The culture is rooted in continuous learning and development, which not only encourages team members to be innovative but to also pursue their interests and work on new skills.

5. Recognition and rewards

When we say "rewards," we're not referring to gift card contests that HR sometimes hosts at the office. Recognition can be delivered in any format, whether through your collaboration software of choice or during in-person meetings. It's important for employees to feel recognized, acknowledged, and supported. This often boosts their confidence, performance, and satisfaction, leading to a healthier and more productive workforce.

Consider a work culture where recognition is the norm by highlighting achievements and recognizing admirable behaviors. Reward good work by shining a light on it during team meetings, all-hands video conferences, and team chat channels on your collaboration software.

For example, Airbnbcreated an employee experience team whose sole task is to focus on creating positive and meaningful experiences for the company's employees. One of their programs, the "Love where you work" awards, allows employees to nominate colleagues for embodying Airbnb's values. This reinforces the company's culture of appreciation and collaboration, celebrating individual success and making employees feel valued and motivated.

6. Work-life balance and employee well-being

Work-life balance is now one of the most important aspects of work for employees. Companies that provide employees with more flexibility attract and retain more talent than businesses that don't. A survey conducted by Deloitterevealed that the majority of Gen Z and millennials on a remote or hybrid model would look for an entirely new job if they were asked to work from the office full-time.

Giving employees the power to recharge, spend time with loved ones, and pursue personal interests outside of work shapes happier and more fulfilled employees. That's why generous PTO policies, flexible work models, paid parental leave, and sabbaticals boost productivity and retention rates.

For example, Patagoniaoffers flexible work arrangements, like flexible schedules and telecommuting options, to accommodate its team's needs and lifestyles. The company is also known for providing generous paid time off and parental leave.

Tips and best practices to build a positive work culture

Now that we've outlined what goes into creating a positive work culture, it's time to put it into practice. It all starts with your company's core values, which should inspire and shape internal communication. In turn, being honest with your team about decisions, initiatives, and overall company direction builds a measure of trust between leadership and employees. Here are some tips for creating and maintaining a positive work culture.

• Lead by example:Set a positive tone from the top by demonstrating the values you want to see in your employees. If you want to build a highly innovative culture, for example, your leadership team will need to value employee input, creative ideas, and new processes.
• Communicate openly and transparently:Foster an environment of trust and collaboration by encouraging open communication, providing regular feedback, and being open to receiving it.
• Prioritize employee well-being:Support work-life balance, offer professional development opportunities, and provide resources for mental and physical health, PTO policies, and flexible work models.
• Recognize and reward achievements:Celebrate successes and acknowledge employees' contributions to reinforce desired behaviors and boost morale. Start an appreciation thread on your team chat software and encourage your management team to highlight their employees' accomplishments.
• Promote diversity and inclusion:Create a culture where all employees feel respected, valued, and included, regardless of their background or identity.

How collaboration tools enhance work culture

You might wonder how creating a work culture differs depending on team location. The truth is that different work models - like hybrid or remote - require a different approach.

Leverage collaboration toolsto improve teamwork and enhance communication, connecting your team regardless of location or time zone.

Features like video conferencing, instant messaging, and virtual workspaces promote real-time interaction and provide a space for your work culture initiatives. Workvivo, for example, is a centralized platform that enhances work culture by fostering team communication, recognition, and engagement, turning your team into a community even if they live on opposite sides of the globe.

A positive work culture does more than just ensure employee satisfaction and well-being - it also plays a critical role in supporting the company's success and growth. By implementing a healthy culture, business leaders lay the foundation for a productive, long-lasting workforce that embodies the company's core identity.