How to Improve Company Culture in 11 Steps

What is company culture? It’s your reporting structure, decision-making processes, floor plan, and dress code. It’s how you acknowledge employee accomplishments, birthdays, and holidays. It’s your connection to a greater purpose, as well as the company goals and values you share. Company culture is all of these things—and more. 

Your office culture might fall into one specific category, be a mix of the different types of company cultures, or perhaps you’re still trying to assess the culture at your organization. Whatever the case may be, strong company culture is a crucial element that can have an impact on recruitment, retention, performance, and your bottom line.

Regardless of how long you’ve been in business or the type of company culture you have, there is always room for improvement. Check out these 11 ways to improve your organizational culture.

1. Create a compelling employee value proposition statement

You might not have this in writing yet, but you need to. An employee value proposition (EVP) is everything of value that your business has to offer to its employees—a promise of what you will provide in return for their skills. An EVP includes things like compensation, benefits, flexible schedules, remote work opportunities, and other perks available to your employees. 

There are several characteristics that make an EVP compelling. For starters, it should be clearly communicated in your job postings, your employee handbook, and on your website. It should also be unique to your business. Perhaps you offer professional development opportunities, tuition reimbursement, or creative health and wellness benefits. And, of course, you’ll want to highlight the interpersonal dynamics of your workplace culture—including things like valuing collaboration or teamwork.

For examples of exceptional EVPs, consider Canva, HubSpot, and Trader Joe’s. In addition to a relocation budget, free gym memberships, and on-site chefs, Canva’s website also mentions their unique Vibe & Thrive benefit. This allowance is for employees to use toward well-being, social connection, office set up and other things specifically tailored to their lifestyle, needs, and desires. In HubSpot’s EVP, there’s an emphasis on treating employees like people instead of line items. The software development company also mentions its unique benefits, including a five-year sabbatical and unlimited vacation. In accordance with Trader Joe’s transparent approach to company culture, the grocery chain openly explains that regular performance reviews are given with a common 7–10% pay increase per year. 

2. Provide meaningful compensation and benefits

Benefits are an important part of corporate culture and are a great way to make your company stand out. For starters, a competitive salary is not only attractive when recruiting new hires, but it’s also one of the most important factors when it comes to employee retention. And, adequately compensating your workers enhances employee satisfaction because it shows value, appreciation, and respect. 

However, while compensation is what most likely immediately comes to mind when thinking about benefits, there are other non-monetary benefits that are likely meaningful to current and prospective employees.

The companies in the section above provide excellent examples of some unique benefits of significant value to employees. Other examples of standout benefits include mental health support, fertility assistance, college assistance, and a pet-friendly workplace—just to name a few. 

Doing your research to see what your competitors offer in the way of compensation and benefits is a good way to get an edge over the competition for recruitment and retention purposes. Another way to ensure your company’s benefits are valuable to your employees is to ask them. Benefits are a way to improve the quality of life of your employees. Talk with your team members about what perks they would like to see in the workplace, and what benefits would have a big impact on their lives.  

You can take care of both the health and the wealth of your employees by taking advantage of Gusto’s wide range of benefits offerings.

3. Allow for flexibility

A flexible work arrangement is one of the most coveted perks for today’s workforce. Having flexibility in their work schedule allows employees to create a better work-life balance without having to exhaust other resources. Without the stress of a strict work schedule, parents can be present when their children need them, appointments can be made without taking time off, and caregivers can spend time helping their loved ones.

And while overall employees are more satisfied both personally and professionally when they have flexibility and remote work options, employers also benefit from this type of arrangement. When employees are happier, they are more productive and are likely to stay longer in their position. Employee engagement also leads to a deeper connection with their work and the company.

Employers who want to begin offering flexible work arrangements need to first identify which positions and roles in their company would flourish with a flexible schedule and which would flounder. Then, they should identify which flexibility options work for them, and hire the right people to fill these roles. Not every worker is self-motivated to thrive in a flexible environment. 

Employers aiming to have success with flexibility should also be open to placing more of an emphasis on the outcomes and impacts employees achieve than on the actual process implemented to get there. Additionally, employers need to clearly communicate their expectations in terms of outcomes and results to all employees, but especially to those who have flexible schedules and/or work remotely. Clear communication with these individuals is necessary, specifically when it comes to deadlines and how often to check in with their supervisors.

Enabling flexibility and allowing for remote team members can occasionally present its own challenges. Leadership needs to adopt certain characteristics, approaches, and processes that will specifically aid them in managing people who are both in the office and around the world. Gusto’s all-in-one human resources platform for remote teams helps expertly manage teams even when they are apart.

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4. Allow for autonomy

Autonomy in the workplace means allowing employees to have the freedom to work in the ways that best suit them and allow for the greatest satisfaction and productivity. Autonomy can include flexibility—being able to choose when and where they work. It also means allowing employees to make decisions about their own work and to provide feedback and input to management on processes, deadlines, and other elements of the job. 

When employees have the ability to act according to their own values and interests, they are more engaged and experience higher levels of contentment than employees who lack autonomy.

As with flexibility in the workplace, successful autonomy requires clear and consistent communication between employees and management, especially when it comes to goals and deadlines. And, while the goal is to eliminate micromanaging, employers should also be sure that they are open and available to provide input and support when it’s needed. Finally, mistakes should be seen as an opportunity to learn and improve rather than a failure and cause for finger-pointing.

5. Eliminate burnout

Simply put, burnout doesn’t just impact the employees who experience it, it’s all-around bad for business. The negative side effects that come with an employee being overworked and overwhelmed are felt by their coworkers and management. This negativity also has a direct effect on the bottom line of your business because of its impact on retention, the health and wellness of your team members, and productivity. 

One of the keys to eliminating burnout is ensuring that your business is consistently adequately staffed. Having too few workers, or not having enough workers with the appropriate skills and abilities, will cause the other team members to have to pick up the slack. Encouraging your employees to delegate responsibilities so that everyone has a reasonable workload will also help to eliminate burnout and encourage teamwork. Additionally, consider outsourcing some tasks to freelancers and other outside groups to reduce your internal workload. 

If you take inventory of all of the tasks being done at your company, you will probably realize that several are altogether unnecessary and many are taking up more time or effort than is warranted. Make adjustments accordingly to reduce the time and effort spent on these tasks. And finally, set limits on work hours and time. One way to do this is by discouraging employees from responding to emails while “off the clock.” 

6. Embrace transparency 

One of the main reasons why creating a transparent workplace helps to establish a healthy work environment is because it can lead employees to be more trusting of their leadership team. When you are open and honest with your team, it shows that you have a great amount of respect for them, no matter what their responsibility level is in your company. A transparent environment also encourages communication and collaboration among workers.

You can achieve transparency and build trust if you share what you know when you know it. Don’t delay in disclosing information—especially on important topics such as hiring, firing, promotions, and budget cuts. Involve employees in decision-making and create an open-door (or no-door) policy at your company where employees feel comfortable approaching management. And, perhaps most importantly, confront difficult situations in a timely and appropriate manner. Doing so reduces the opportunity for gossip and speculation and prevents situations from getting worse.

7. Encourage meaningful employee interactions

When employees are connected to each other, they are more connected to the company. Increased engagement can improve performance, increase trust, create open communication, and build collaboration. 

Encourage employee relationships by providing opportunities for them to get to know each other, both professionally and personally. The former can be accomplished through shared projects and responsibilities that encourage working collaboratively. Keep your team connected by email, chat, and task apps through Gusto’s collaboration integrations.

Personal relationships can be strengthened by holding social events such as happy hours, birthday celebrations, holiday traditions, team-building activities, and group outings. Companies that have dedicated space for socializing (such as a kitchen, breakroom, lounge, workout room, or eating area) inherently provide opportunities for employee interaction. It’s important to start encouraging employee relationships on day one by building these opportunities into your onboarding process and procedures for new employees.

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8. Emphasize workplace wellness

A healthy employee is a happy employee. And not just physically—we are also talking mentally and emotionally healthy. Healthier, happier employees (as we’ve previously mentioned) are more productive. And better performance means a boost to your bottom line.

Wellness can be encouraged through a number of avenues. For example, you can create a wellness program with educational components and opportunities for competition to keep your staff motivated. Incorporate opportunities to promote smoking cessation, exercise, healthy eating, professional development, and mentoring and coaching. Encourage frequent breaks throughout the day, walking meetings, and health competitions (such as the number of steps taken each day). Also consider creating a wellness committee to create structure and consistency in your program, as well as instituting a rewards system to develop motivated and engaged employees.

9. Create an employee appreciation program

Establishing an official way to show your appreciation for your employees not only provides motivation for them to perform better, but it shows respect for your workers. Like many of these tips, creating an employee recognition program demonstrates how valued your employees are, which can lead to greater performance and profits.

Begin by setting up a committee and a budget for activities and rewards. There are also many “free” awards that are valuable to employees, such as having a longer lunch break, receiving an extra vacation day, bringing their pet to work, or dressing casually. The policies, expectations, and rewards system you decide on should be communicated clearly and should be consistent across all employees. Increase motivation to participate by holding a “launch” event to introduce the program and drive excitement. You can also incorporate opportunities for employees to recognize their co-workers for a job well done.

The first Friday in March is National Employee Appreciation Day so you might consider doing something special at that time. However, demonstrating your appreciation should happen more than once a year. Anytime is a good time to recognize your employees and express your gratitude for their commitment to your company.

10. Give back to the community

Great company culture should involve more than just what happens at your office (remote offices included!). Giving back to the community in which you work and live is a great way to foster a strong, healthy culture for your organization. Creating a program to give back aligns your business with a greater good—and it also puts action behind your shared company values. When employees are given the opportunity to be part of something bigger, they feel a greater sense of purpose and have increased morale, productivity, and performance.

Start off by surveying your employees to see what types of missions and organizations they feel connected to and what they would like to support. Then, create a strategy around those core values, thoughts, and ideas. Incorporate paid time off each year to allow employees to volunteer. Organize company-wide charity drives and fundraising opportunities. Sponsor activities in the community and allow your employees the chance to participate in those events. 

11. Start at the top

And finally, improving company culture starts with you. As the leader of your business, you set the tone for your company and you know what characteristics you want in an organizational culture. Lead by example so that your employees see first-hand what expectations you have around company culture. “Be the change you wish to see,” if you will.

If you want to see more of a collaborative culture, begin by putting your workspace out in the open. If flexibility is important to your employees, incorporate that into your own schedule. Take advantage of the benefits and perks that your company offers: bring your pet into work, dress down when appropriate, take regular breaks during the workday, and don’t email employees or respond to emails you receive in the evenings or on weekends. Additionally, embrace openness, and listen to your employees. 

A final word

Having a good company culture is all about creating the most ideal employee experience. It’s one of the most effective employee retention strategies, and it’s an excellent way to remain a step ahead of your competition when it comes to recruitment. There are many great examples of work culture you can emulate. However, keep in mind that even the Trader Joe’s and HubSpots of the world have room for improvement and continuously work at managing, updating, and perfecting their strong corporate culture. 

Begin by assessing and identifying which type of company culture you currently have and how it compares to the culture you desire for your business. Consider these 11 ways to improve the culture at your organization and become known as a “best company” to work for. And remember, positive results start with you.

Gusto Editors

Gusto Editors

Gusto Editors, contributing authors on Gusto, provide actionable tips and expert advice on HR and payroll for successful business management.