Successful companies like Netflix, Cisco, Google, and IKEA have one thing in common: a positive workplace culture that attracts top talent while fueling performance. For example, Cisco promotes a "conscious culture" where employees are encouraged to show leadership, speak up, and embrace their differences. Similarly, IKEA's culture revolves around diversity, equality, and togetherness. 

Whether you're leading a growing team or launching an online business with a website builder, it's essential to develop a strong workplace culture where your employees can thrive. This aspect alone can boost productivity, retention, and ROI, contributing to long-term success.

By contrast, a toxic work culture is associated with low team morale, decreased engagement, and poor performance. It also promotes stress and burnout, resulting in high absenteeism and talent churn. Over time, it can negatively impact a company's reputation and bottom line. 

But what does a healthy corporate culture look like, and how can it benefit your business? Let's find out. 

How Healthy Is Your Company Culture? 

While there's no standard definition of a healthy workplace culture, this term generally describes an environment where people feel valued, connected, and psychologically safe. They trust each other, share common values, and enjoy working together. 

A positive culture may look different from one company to another, but the underlying traits are consistent across organizations. These include trust, clarity, inclusivity, transparency, and a sense of shared purpose. It's less about what you can see and more about how people act and treat each other behind the scenes. 

Employees at companies with a healthy culture feel inspired and engaged. They're not afraid to take initiative, share feedback, or admit their mistakes. They also receive support from management, which allows them to develop new skills and grow in their roles. 

Positive work cultures promote mental and physical well-being, encouraging habits that prevent stress and burnout. For instance, Google and other top employers offer perks like:

• Team-building activities
• Flexible work arrangements 
• Collaborative spaces
• Career development opportunities
• Diversity, equity, and inclusion (DEI) initiatives 
• Gym memberships
• Company outings

And much more. 

These organizations also have strict policies against gossip and politics. Employees can be themselves, share their thoughts, and challenge ideas without fear of backlash. 

Company Culture Impacts Work Performance and Productivity 

According to a 2024 study of the Fortune 100 Best Companies to Work For™ in Europe, organizations with positive cultures outperform typical workplaces across several key areas, including agility, productivity, innovation, and customer service. Their employees also enjoy better psychological and emotional health and stick around longer. 

Given these aspects, it's no surprise that great work cultures are linked to revenue growth and higher average annual returns. 

One explanation is that when people feel valued and supported, they're more likely to go the extra mile and reach their full potential. Additionally, positive organizational cultures boost employee engagement, which in turn can improve work performance. 

Engaged employees are also more productive and motivated because they have a sense of purpose. They know what they do matters and feel connected to the bigger picture, which drives them to perform at their best. 

Moreover, healthy workplace cultures foster a growth mindset, leading to faster innovation. Employees have access to training programs, mentorship, and other resources that enable continuous learning, allowing them to adapt quickly and solve problems creatively. 

Build a Workplace Culture That Drives Performance 

You don't have to be Google or IBM to build a high-performance culture. The key is to make small but impactful changes and put your people first. Here's how to get started. 

Assess Your Organizational Health 

First, assess your organizational health to see where you're at and uncover areas for improvement. Start by monitoring relevant metrics, such as:

• Employee engagement
• Employee well-being
• Turnover rate
• Absenteeism rate
• Job satisfaction
• New hire fail rate 
• Training ROI
• Organizational health index 

For example, you can measure employee well-being, engagement, and job satisfaction through surveys. Leverage these insights to identify friction points, spot trends, and make changes that reflect what your people need. 

Let's assume there's a dip in engagement among remote workers. After digging deeper, you realize they feel disconnected from their teams. In response, you launch a series of virtual team-building events, monthly “coffee chat” sessions, workshops, or other activities aimed at bonding employees. 

Set Company Values That Matter

According to a Gallup survey, only two in 10 employees feel connected to their company's culture. One reason is that the organization's core values don't resonate with them. 

These values shape how people behave, work, and interact with each other. For instance, when a company prioritizes integrity and transparency, employees are more likely to communicate openly and take responsibility for their actions. 

However, improving workplace culture takes more than simply defining a set of core values. You also need to ensure your company's values matter to employees. One way to do that is to involve them in shaping and refining those values through open conversations, ongoing collaboration, and two-way feedback. 

Encourage Employee Autonomy 

Empower your staff members to make decisions, take ownership of what they do, and think outside the box. 

This approach can drive growth and innovation while giving employees a sense of purpose. It also shows you trust their judgment and feel confident in their ability to prioritize tasks, manage their time, and contribute to team goals. 

For example, allow them to experiment and implement the solutions they have in mind without fearing blame if things don’t work out. You can still have rules and policies, but frame them as guardrails. Celebrate success, no matter how small, and treat setbacks as learning opportunities. 

Provide Continuous Feedback

In many organizations, employees have two or fewer annual check-ins with their managers for feedback, mentorship, and career development. This lack of regular dialogue can lead to disengagement, missed opportunities, and low motivation. 

A healthy workplace culture revolves around continuous feedback and open communication. As a manager, it's your responsibility to provide regular, constructive feedback and encourage your staff to do the same. 

This practice can strengthen the bond you have with your team members and drive engagement. They will know what's expected of them, where they can improve, and whether their work is up to par. The result? Higher performance, improved communication, and faster career growth. 

Commit to Inclusive Hiring 

A positive corporate culture promotes diversity and inclusivity, making everyone feel welcome. Think of Salesforce, PayPal, Apple, Coca-Cola, and other companies with strong DEI practices. They attract top talent from all over the world and are highly praised by employees. 

A good starting point is to write more inclusive job descriptions. Prioritize skills and abilities over location or cultural background, incorporate diverse voices in the hiring process, and use anonymized resumes to ensure fair evaluations and prevent unconscious bias. 

What matters most is to put your employees' well-being first. Provide career development opportunities, launch mentorship programs, and make recognition part of your culture. Give everyone equal chances to grow in their roles and take on meaningful challenges. 

Last but not least, lead by example. Company culture flows from the top, and you can’t expect your employees to embrace core values like trust, integrity, and respect if your behavior doesn’t reflect these attributes. Treat your team members the way you want to be treated to make them feel valued and heard.