How to Create A Positive Company Culture [Complete Guide]

Having a positive company culture is an important aspect in running an organization. It affects employee engagement, productivity, morale, satisfaction and much more. It’s ensuring employees have a good life at work and as a result, it also improves retention.

While it’s known that having a positive company culture is ideal, there are still a lot of organizations that take the significance of work culture for granted. Moreover, the lack of knowing how to create a positive company culture is also an issue.

There are a lot of benefits with having a positive company culture. Having a good work culture improves:

  • Employee productivity
  • Retention
  • Morale
  • Performance
  • Loyalty
  • Mental health
  • Physical health
  • Happiness
  • Engagement
  • Satisfaction

A company benefits from an engaged workforce as improved productivity means better chances of greater revenue. Moreover, having a positive company culture also lets an organization be more appealing to job seekers. 

It’s a win-win situation for both the employer and the employees. This is why it’s important to know how to create a positive company culture and act upon it. It’s what separates the top companies from the rest.

Here’s how to create a positive company culture:

Hire the Right People

With building up a good company culture, begin with hiring the right people. Know that attitude is more important than talent. This is because skills can be taught but attitude is harder to develop. 

According to The Daily Reader, “research has shown that your attitude is the most important factor in determining how well you do in life.” Moreover, attitudes and energies are contagious. Surround yourself with negative people and in time, you can find yourself becoming like the people you associate with.

On the other hand, surround yourself with positive people and it can be easier for an individual to also be positive. What this means is that even a single toxic person can affect the morale of the workplace.

This doesn’t mean that talent should be neglected. This just means that skillset and attitude should go hand in hand.Hire candidates whom you believe can fit in the culture you are trying to build. 

See their potential by testing their soft skills. Don’t make the mistake of making a bad hire. According to Forbes, no hire is better than a bad hire. Toxic employees can sabotage the fruition of a good company culture. 

They can cause tension, conflict and low workforce morale. Here are the impacts of a bad hire according to Entrepreneur:

  1. Decreased productivity
  2. Cultural imbalance
  3. Damaged reputation
  4. Negative financial impact

According to The Undercover Recruiter, bad hires cost $240,000 in expenses related to hiring, compensation and retention. Be selective with whom you let in your organization. Otherwise, you risk experiencing the consequences of a bad hire.

Be More Empathetic

An empathetic leader is an integral element in forming a positive company culture. With an empathetic leader, employees are more motivated and engaged at their work. 

Empathy is the biggest single leadership skill needed in today’s world. This is according to studies conducted by the Development Dimensions International. Richard Wellins, the senior vice president of DDI, had this to say:

“Being able to listen and respond with empathy is overwhelmingly the one interaction skill that outshines all other skills.” Moreover, empathetic leaders are able to foster a spirit of teamwork and they also help improve employee loyalty and thus, also retention.

According to Dianne Crampton of Gonzaga University, “empathy is a universal team value that promotes high commitment and cooperation in the workplace.” A study by Business Solver showed that 92% of employees would want to stay at their jobs if their employer showed empathy.

You can show empathy by being more understanding and helpful to your employees. This can also include offering employee benefits for their financial security and physical wellness. You can also do this by talking to your employees on a more personal level.

Talk to them about their family, goals and even their hardships in life. If they have problems with how to refinance student loans or whatever issue it may be, give them good advice. Being empathetic is about being able to see and understand from the perspective of others. 

It is the leader who should initiate the forming of work culture. If positivity fails at leadership, it will be almost impossible to create a positive company culture. 

Positive Communication and Recognition

Communication can both create and solve problems. It just depends on how a person delivers and perceives the message. With how to create a positive positive company culture, positive communication is another requirement.

This is not about random unproductive chats in the office. Positive communication is about delivering a message, even if it’s a negative one, in a positive manner. This can be nurtured through coaching of the leader or through training and seminars about positive communication.

One reason for positive communication is to empower and motivate others. A good example of this is through recognizing employee efforts. Here are some ways on how you can recognize employees according to gethppy:

  1. Give shout-outs
  2. Offer fun projects for professional and personal development opportunities
  3. Take them to lunch
  4. Distribute non-cash rewards
  5. Loosen the reins
  6. Throw a competition, party or potluck
  7. Encourage peer-to-peer recognition
  8. Say thank you 

With recognition, it goes without saying that you have to be genuine with your acts. Otherwise, you can have problems gaining the trust of your employees. Here are the benefits of recognizing employee efforts:

  • Improves employee retention
  • Improves employee engagement
  • Improves trust
  • Employees become more motivated
  • Improves employee loyalty
  • Improves employee satisfaction
  • Improves employee happiness

All in all, positive communication and employee recognition helps pave the way in creating a positive company culture. 

Don’t take the importance of having a positive company culture for granted. It’s a game-changing scenario and offers a myriad of benefits both for the employer and the employees. 

Follow the steps we’ve provided and you’re well on your way in creating a positive company culture.