How to Improve Company Culture and Boost Employee Engagement

Creating a positive company culture involves listening to your employees and recognizing when they're struggling. Paying attention to your employees' feelings is vital for establishing and maintaining a work environment where they feel valued, heard, and motivated to give their best. 

In contrast, when you have a negative company culture, employees are typically dissatisfied with their work environment, which can negatively impact your customers. Customers may notice inconsistency in your employees' workflows, changes in employee behavior, or a high employee turnover rate. Ultimately, this could lead to a decline in your company's success and a negative impact on your reputation. 

This article delves into what a negative company culture is, why it's harmful, and how to improve company culture so that it breeds positivity, productivity, and engagement.

What Does Negative Company Culture Look Like? 

Toxic relationships, low morale, and a general sense of dissatisfaction among employees are telltale signs of a negative company culture. Managers who fail to address concerns or micromanage their workers often perpetuate this type of culture. When employees feel unheard or undervalued, productivity suffers, and employees may dread coming to work. 

Other signs you're dealing with a negative company culture include: 

• Lack of trust and transparency
• Frequent conflicts and poor communication
• High turnover rates
• Resistance to change
• Diminished employee well-being
• Poor customer relations 

How Negative Company Culture Affects You 

A negative company culture can affect both the company and its employees in several ways. Because a negative company culture often means there's less work getting done, it also means lower profits. There is also a higher employee turnover rate, which means that the company will need to spend more time and money on finding and training new people. This makes it harder for the company to improve and grow. 

As far as reputational damage goes, a negative culture rarely stays a kept secret. It's likely that the company will become known as being a toxic environment and a place where people don't want to work. It'll be harder to attract talented employees and win over customers and partners who prefer to deal with companies that treat their employees well. 

Benefits of a Positive Company Culture 

We've discussed the negatives – but what about the positives? Here's why changing company culture from negative to positive is important: 

• Happier employees: They are more loyal and will be less likely to leave your company, fostering a stable and motivated workforce that contributes to long-term growth and success.
• Improved productivity: When your employees are happy, their productivity and morale will increase, leading to better results and ultimately boosting your company's competitive edge in the market.
• Better team communication: Your employees are likely to get along better, which means they'll be able to communicate more freely and be open to collaborating, resulting in smoother project execution and the generation of innovative ideas through effective teamwork.
• Stronger management:  Your management will be stronger and its methods of training and supervising will improve. This could lead to better onboarding for new hires and more effective guidance for existing employees. 
• Improved company reputation: When word gets out that your employees are content and engaged, it can lead to a favorable reputation in the industry and among potential partners, clients, and customers. This enhanced reputation can open doors to new opportunities and partnerships, further contributing to your company's growth and success.

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6 Ways to Improve Company Culture 

So, how do you change a company's culture that may be perceived as negative? Or how do you start fresh and build a positive culture from the start? Below are the best ways to improve company culture.

Encourage Communication 

Encourage employees to share their thoughts, concerns, and ideas without fear of repercussions. Create channels for feedback, whether through regular meetings, suggestion boxes, or digital platforms, and actively listen to what your team has to say. Responding to employees' input shows that their voices matter and can lead to valuable insights and improvements within the organization. You should also allow your employees to submit anonymous feedback, letting those who are hesitant feel safe to voice their opinions. 

Additionally, checking in with your employees one-on-one can demonstrate a genuine commitment to their well-being and professional growth. 

Celebrate Your Employees

Celebrate milestones, achievements, and hard work. Implement an employee recognition program that highlights outstanding contributions. Simple gestures like a thank-you note or a team lunch can go a long way in making employees feel valued and motivated. Celebratory messages don't have to just come from you or the HR department – make sure to encourage your employees to congratulate each other for a job well done. 

Be Inclusive and Diverse 

A diverse and inclusive workplace not only reflects the world we live in but also brings a variety of perspectives and experiences to the table. Embrace diversity in your hiring practices and ensure that your company culture welcomes people of all backgrounds, genders, and abilities. Promote inclusivity by offering diversity training and creating an environment where everyone feels comfortable being themselves.

Offer Growth Opportunities 

Employees thrive when they have opportunities to learn and grow. Provide training, workshops, and career development programs that enable them to expand their skills and advance within the organization. When employees see a clear path for growth, they are more likely to stay committed and engaged.

Allow Some Flexibility 

In today's fast-paced world, work-life balance is a must. Offer flexible work arrangements such as remote or hybrid work options or flexible hours when feasible. Trust your employees to manage their responsibilities while maintaining their personal lives. This flexibility can lead to increased job satisfaction and a happier, more productive workforce.

Incorporate Fun Into the Schedule 

Adding some fun to the workplace can boost morale and creativity. Organize team-building activities, celebrate birthdays and work anniversaries, or create themed events. 

You can also add some friendly competitions with small rewards or plan a field trip with your employees to take them golfing, fostering a sense of teamwork and relaxation outside the usual office environment. 

Remember, these activities not only contribute to a positive workplace culture but also offer opportunities for employees to bond and recharge, ultimately increasing their overall job satisfaction and productivity.

Resources for Improving Company Culture

The journey toward improving company culture is a continuous one. It requires dedication, innovation, and a commitment to the well-being and engagement of your employees. Struggling to strengthen your company's culture? iHire's employer branding and company culture guides can help. Remember, a positive company culture not only enriches the lives of your employees but also contributes to the overall success of your company.