Blog
What Are the Most Critical Elements of Organizational Culture?
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Blog
What Are the Most Critical Elements of Organizational Culture?
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Research reinforces the link between a positive workplace culture, employee engagement and business success, positioning organizations for long-term growth and sustainability.
But what defines a strong workplace culture? A strong workplace culture is built on respect, a shared purpose, open communication and a sense of belonging and inclusion. It’s an environment where everyone feels safe to share ideas and collaborate — and where accomplishments are recognized. These factors directly impact employee engagement, making culture a powerful tool for attracting top talent, boosting productivity, continuous innovation and business growth.
6 Elements of Organizational Culture
Companies don’t “own” organizational culture, but they can influence it. Focusing on the following six elements of organizational culture can shape strong cultures capable of attracting and retaining today’s purpose-driven talent.
1. Leadership
Cultivating a strong company culture starts with leaders doing an honest assessment of the current culture at their organization, identifying where the culture is strong and where it fails to meet employee and marketplace expectations.
This work requires empathetic and authentic leaders to effectively assess the workplace culture and build trust and credibility across the organization. Strong organizational culture relies heavily on trust in leaders, managers, colleagues. Employees must believe the company will do what it promises.
Leaders must also:
- Be accessible, relatable, open and transparent
- Have strong communication and listening skills
- Prioritize two-way communication by listening and being open to honest back-and-forth dialogue
- Consistently reinforce the organization’s purpose, mission and values through both words and actions
2. Purpose and values
A recent survey by the American Psychological Association found that people of all ages crave a deeper purpose in their jobs. In fact, 93% reported believing it’s very or somewhat important to have a job where the work has meaning.
Organizations that clearly define their purpose or mission, and activate values to support them, are well positioned for long-term success in a rapidly changing business climate. Purpose, mission and values should authentically reflect how the organization operates and what it aims to achieve. Employees will quickly call out an employer who says one thing but does another. However, when employees believe in the organization’s purpose, they’re more likely to be engaged, motivated and stay.
Shaping a purpose-driven culture that more deeply connects employees to their work requires organizations to:
- Be clear about their reason for being (purpose/mission)
- Adopt a framework for bringing their purpose or mission to life through actions and behaviors (values)
- Clearly communicate the purpose, mission and values —then follow through
- Regularly share tangible examples of employees’ roles in the organization’s success
3. Employee empowerment
Employees want their employers to trust and appreciate them and to give them the space they need to work when, where and how it works best for them. Organizations empower employees when they provide them with flexibility, autonomy and respect. Empowered employees are more creative and innovative, and the organization is stronger as a result.
Organizations can build a culture of empowerment by:
- Listening to what employees want and need—and following through
- Providing flexible work arrangements that allow employees to work remotely or in other flexible ways like schedule shifting
- Demonstrating appreciation for employee contributions through rewards, recognition, perks/amenities, compensation and benefits
- Encouraging managers and peers to provide employees with frequent and meaningful feedback
4. Inclusive well-being
A growing number of employees are experiencing feelings of burn-out, and employers play a significant role in helping them return to a stronger state of well-being. Companies that put well-being at the forefront of their people strategies measure better people outcomes and better business results.
Organizations can make inclusive well-being foundational and authentic to their culture by:
- Investing in resources and tools that support employees’ physical, emotional, mental and financial health
- Modeling and reinforcing business norms that promote healthy culture, including regular business hours, meeting-free days, recommended daily breaks, PTO usage and ideas for connecting informally with colleagues
- Evaluating diversity, equity and inclusion programs to assess whether all employees feel like they belong and are supported to be their authentic selves at work regardless of whether they work on-site, remotely or hybrid
5. Professional development & growth opportunities
Employees may leave jobs if they don’t have professional growth and advancement opportunities in an organization. Employers that provide clarity on advancement paths and support professional development are more likely to retain their employees. Growth cultures also contribute to higher rates of innovation because employees feel encouraged to learn new things, take risks and explore new ways to solve problems.
Organizations can shape a growth culture by:
- Activating professional development frameworks that include financial support and time allocations
- Offering coaching and guidance for providing effective feedback and internal advancement programs
- Intentionally developing young talent by encouraging mentorship connections and strong onboarding programs
6. Communication
Communication is foundational to a strong organizational culture. It helps organizations engage employees, keep a pulse on the employee experience, and activate new programs that ultimately influence the company culture (including the five other elements of organizational culture). Communication also helps employers build trust with employees. When employers communicate well, employees are more likely to be informed, confident and engaged.
Organizations can use communication to build a trusting and healthy culture by:
- Having a communication strategy aligned to the organization’s purpose and values
- Investing in communication training for leaders and managers and identifying employee influencers capable of championing the culture and values
- Listening, providing space for employee input and taking time to reflect and act on what is shared
- Adopting the tools and channels necessary to consistently engage employees, regardless of when, where and how they work
Businesses today face the challenge of constant, fast-paced change. The ability to attract and retain top talent is the most critical factor influencing an organization’s success or failure. Businesses that invest in these six elements of organizational culture are well-positioned to thrive.