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7 Compelling Benefits of Positive Company Culture

The role positive workplace culture plays in organizational success is undeniable. It impacts everything for better or for worse.

Positive company culture is aspirational and enviable for most organizations. In fact, 94% of entrepreneurs and 88% of job seekers say a healthy culture at work is vital for success. However, healthy workplace culture is more than a set of shared core values and beliefs. It’s the organizational climate –– the shared perception of employees towards management policies and informal leadership practices.

Photo: Morgan Rose Elliott, Freelance Writer

Such a culture inspires collaboration, builds self-confidence, improves morale, strengthens performance, and bolsters retention. As a result, employees are empowered to better manage their mental health. Apart from this, positive workplace culture has seven other benefits.


1. Cultural diversity and inclusiveness

A positive workplace culture makes all employees feel safe supported, safe and valued. Team leaders now manage an increasingly diverse workforce. People of different ages, nationalities, gender, and races form today’s workforce. That’s why it’s essential to provide equal opportunities for personal and professional development. All employees should be able to access and enjoy the same perks.

The most efficient way to cultivate a culture that embraces diversity and inclusiveness is by using language carefully. Encourage employees to communicate in a way that celebrates and welcomes individual differences rather than mere tolerance. As a result, employees will be encouraged to reject preconceived stereotypes and become united.


2. Effective internal communication

The pandemic illustrated the necessity for timely and critical updates. Frontline workers depended on effective internal communications to do their jobs under adverse circumstances. In a post-pandemic world, a majority of employees continue to work remotely. Therefore, the need for regular and effective internal communications remains vital.

Honest and transparent communication is a key ingredient of every positive company culture. Apart from informing employees of company-wide current events, communication improves human interactions and strengthens bonds. Internal communication examples such as team building events, morning coffees, and lunch breaks can create a pleasant and friendly work atmosphere.


3. Greater empathy

For years, empathy has been overlooked as a soft skill. Today’s leaders and employees have to collaborate cross-departmentally, with teams from various backgrounds and cultures. Also, the pandemic dramatically accelerated the need for new skills in the workforce, with social and emotional skills high in demand. As a result, empathy has become a vital professional competency.

Source: McKinsey & Company

Studies show empathetic bosses or employees perform better in their jobs and build strength and resilience in challenging times. Through empathetic leadership, employees can compassionately connect with coworkers to establish sincere bonds and demonstrate a greater willingness to help each other. Without empathy, teams will act as groups of individuals with separate goals.


4. Accessible management

Some employees, due to a subordinate position, are afraid of their managers. They don’t trust their managers and hesitate to ask for help. On the other hand, some managers aim to keep conversations strictly professional which makes employees think they aren’t accessible. This dynamic is a recipe for low employee morale and high turnover.

A positive company culture promotes leaders with their employees’ best interests at heart. When leaders are humble, inclusive, and supportive, the performance outcomes and learning improve. More importantly, encouraging team members to ask questions, share feedback, and speak up encourages management to become more approachable.


5. Enviable reputation

Companies are always looking for opportunities to gain a competitive advantage. There’s no better advantage than having a strong business reputation and reaping the benefits of it.

You can invest as many resources as you want into brand building, however, people still prefer good old word-of-mouth marketing. If your employees are satisfied with their role and company culture, they’ll spread the word. As a result, your company will become an attractive employer to future candidates. More importantly, you’ll retain talent and reduce turnover rates. Also, plenty of clients will want to do business with you.


6. Improved business performance

Ninety-two percent of leaders at successful companies believe company culture has a strong impact on financial performance, according to a Dale Carnegie whitepaper entitled ‘Transforming Attitudes and Actions: How Senior Leaders Create Successful Workplace Cultures.’

A healthy and friendly workplace lessens stress, improves natural commitment to the task at hand, and team members can rely on each other to exceed expectations and contribute to the achievement of business unit and company goals. They thrive in comfortable, motivating, and pleasant workplace environments. As a result, the company maximizes profits. In essence, employees are responsible for economic gains.


7. Growth opportunities

Today’s workforce is hungry for knowledge, development, and promotions. They don’t want to spend more time than needed in one position doing the same job every day. Once they’ve outgrown their position, they want to advance and climb the career ladder. To counter this reality, help people set attainable individual goals and empower healthy competition.

Organizations with positive company cultures encourage and support employee growth and provide the necessary tools for success which often includes training, professional development programs, and upskilling.


Building a positive company culture

The role positive workplace culture plays in organizational success is undeniable. Comprehensively, it benefits performance, professional growth, empathy, inclusiveness, reputation, management, and communication. The benefits are convincing enough to make culture a priority. As British-American author and inspirational speaker Simon Sinek says, “Corporate culture matters. How management chooses to treat its people impacts everything for better or for worse.”


Morgan Rose Elliott, an Australia-based freelance writer, graduated with a degree in Marketing from The University of Sydney. She loves writing about business and lifestyle.


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