How Does Company Culture Impact Employees? (2024)

Company Culture

Company culture is powerful: it can impact sales, profits, recruiting efforts and employee morale, whether positively or negatively. A great company culture attracts people who want to work or do business with a company. It can inspire employees to be more productive and positive at work while reducing turnover.

It can even act as your best recruiter, attracting qualified candidates who want to work for your company. It’s easy to see just how important company culture can be.

There are brands doing it famously well, and if you’re wondering how you can too, often a good place to start is understanding how your company culture impacts your employees.

Company Culture’s Impact on Employee Performance

To provide the biggest competitive advantage, an organization’s culture must be strong, widely communicated and reinforced. Everyone must share their values and beliefs.

In a strong culture, employees feel valued. They enjoy at least some control over their jobs, instead of feeling powerless. Whether it’s by working from home, choosing their projects or trying out a new role, employees that feel valued and can make decisions achieve a higher level of performance.

Strong company cultures also give employees opportunities to grow. Offering promotions, career development programs or extra training can keep employees motivated – which in turn, improves performance. When everyone is in it together, they will all put forth the extra effort to achieve organizational goals.

Company Culture’s Impact on Employee Happiness

Positive company culture has the ability to ensure that employees remain satisfied with their jobs and loyal to the organization. This can be extremely beneficial in a competitive hiring environment. People are much more interested in signing on (and staying) with a company culture that promotes flexibility, supports employee development and offers work-life balance.

Improving employee satisfaction through a strong and supportive company culture can reduce recruiting, hiring and training expenses while improving morale and increasing profits.

Company Culture’s Impact on Employee Engagement

By now, we’ve made it clear that strong company culture has quite the impact on an organization, as well as employee performance and satisfaction. Now let’s explore the many ways that company culture can impact employee engagement:

Communication: In companies with good communication practices, employees know their opinions and ideas are welcomed. When employees feel heard, they don’t carry the resentment that can lead to absenteeism, negative morale and termination. Communicative company culture also leads to greater participation, creativity, and innovation.

Safety: Organizations that value employees emphasize safety. A culture of safety becomes ingrained, and employees are more mindful and engaged when performing their duties.

Collaboration: Rather than an “us vs. them” approach, collaborative companies promote autonomy, decision-making, and teamwork. Employees are given opportunities to contribute, placed in roles in which they can succeed, and offered opportunities to build meaningful relationships with managers and co-workers.

Growth: Cultures that foster employee development and growth give workers something to work toward and look forward to. Such cultures prevent boredom and job stagnation while keeping things exciting and interesting.

Once employees are hired, trained and oriented to the workplace, they either feel supported and energized or undervalued and frustrated. When employees feel valued, they are more involved, enthusiastic, and engaged.

Company Culture is More Important Than Ever

In today’s highly competitive business environment, everything from sales to recruiting becomes more challenging. One way to make it all easier is by being a company that people want to do business with and work for. Smart organizations know that strong, positive company culture is one of their most important assets.

Unsure Where to Begin?

That’s where we come in. Great Place to Work® makes it easy to survey your employees, uncover actionable insights and get recognized for your great company culture. Contact us today to get started.

How Does Company Culture Impact Employees? (1)

Nancy Fonseca

Nancy is a leader focused on building executive relationships based on trust, collaboration and partnering, with key internal and external stakeholders. She combines a success record of C-level communication, rapport building and relationship development to help senior executives leverage business services to achieve their business objectives.

How Does Company Culture Impact Employees? (2024)


How Does Company Culture Impact Employees? ›

Company culture is powerful: it can impact sales, profits, recruiting efforts and employee morale, whether positively or negatively. A great company culture attracts people who want to work or do business with a company. It can inspire employees to be more productive and positive at work while reducing turnover.

How does company culture impact employees? ›

In contrast, people working in companies that have a positive corporate culture are healthier, happier, more productive, and less likely to leave. Research also shows that companies with positive workplace cultures have higher average annual returns.

How do you answer how does company culture affect your work? ›

Look up the company's values, mission statement, and social media presence to get a better understanding of their culture. Then, highlight how your personal work style and values align with the company's culture. It's also a good idea to illustrate your knowledge on how company culture impacts productivity.

What is culture and how does it impact the workplace? ›

The Definition of Workplace Culture

It can be measured by observing and understanding the way employees think, behave, and work. This includes the known and unspoken values and assumptions that drive key business practices and behaviors — especially those of a company's leaders in who they hire, fire, and promote.

How might culture impact your work-life balance? ›

Work-life balance varies across continents due to cultural norms, societal values, and government policies. For example, North America emphasizes individualism and flexibility, while some Asian countries prioritize long work hours. European nations often focus on work-life integration and social support systems.

How does culture impact people? ›

We may not give it much thought, but our culture — the customs, traditions, and social conventions of the country or region where we were raised — can play a significant part in the way we live; shape our behavior and relationships and have a profound impact on our sense of self.

How does work culture affect employee performance? ›

Company culture is powerful: it can impact sales, profits, recruiting efforts and employee morale, whether positively or negatively. A great company culture attracts people who want to work or do business with a company. It can inspire employees to be more productive and positive at work while reducing turnover.

How can my culture influence my work? ›

A number of cultural aspects influence the way we interact with other people, including national culture, gender culture, corporate culture and various communication styles. All these elements influence; how we conduct work. our behavior and style.

What is the best example of company culture? ›

10 great company culture examples
  1. Warby Parker. The direct-to-consumer eyeglass maker leans into the team-first culture model. ...
  2. Zappos. In another team-first model, the shoe company Zappos puts its hiring emphasis on employees who fit their culture first. ...
  3. Adobe. ...
  4. REI. ...
  5. Google. ...
  6. Airbnb. ...
  7. Patagonia. ...
  8. Bain & Company.
Aug 16, 2022

How to answer an interview question about culture? ›

Hiring managers ask the question to gauge your teamwork, empathy, and commitment to a positive workplace culture. It is key to share a specific example that highlights your willingness to support colleagues, showcasing your interpersonal skills.

Why is company culture so important? ›

Culture creates alignment.

Organizations gain momentum when their employees are aligned -- moving in the same direction toward the same goal. This momentum allows them to deliver a seamless, differentiated customer experience while creating a compelling employee experience.

How does culture affect team work? ›

Workplace culture affects how well co-workers collaborate, how invested employees are in their roles, and who is rewarded or promoted for their work. When engagement is low, organizations may see high absenteeism levels and turnover rates and poor performance metrics.

How does company culture impact employee engagement? ›

A positive and open culture can create an environment where everybody trusts each other and brings loyalty to each person. This way, transparent working culture is established, and every employee is engaged with others. Studies show that disengaged employees are costly.

How does organizational culture affect employee behavior? ›

Organizational culture can either be positive or negative. A positive work culture is characterized by supportive leadership, open communication, and shared values between the employer and employees. It results in high engagement, improved well-being for employees, and high productivity.

How does culture affect work attitude? ›

A supportive and respectful culture is fundamental in enhancing job satisfaction. Such a culture doesn't just create a pleasant working environment; it fosters a sense of belonging and respect among employees, which is crucial for their overall contentment and commitment to the organisation.

What are the effects of cultural differences on employees? ›

Colleagues from different cultures can also bring with them different workplace attitudes, values, behaviors, and etiquette. While these can be enriching and even beneficial in a diverse professional environment, they can also cause misunderstandings or ill feelings between team members.

How company culture can attract employees? ›

To attract the best professionals, companies need to create a positive work environment, encourage teamwork, innovation, and learning. Transparency and good communication are also crucial parts of a company's culture. By taking care of employees and helping them grow, a company becomes known as a great place to work.

How does company culture affect employee retention? ›

A workplace culture that prizes honest communication and the giving and receiving of feedback will do wonders for employee retention. Regular meetings, surveys and a leadership level that welcomes and acts on employee feedback are all key to creating an open two-way communication channel.

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