Corporate Culture and Employee Engagement

Work environment is one of the key factors influencing employee productivity and success. Corporate culture is a set of company values, goals, and operations that affect the overall atmosphere and performance within a business. There is a direct link between a positive corporate culture and employee engagement levels, which makes nurturing a productive and positive work environment one of the top priorities in any enterprise, no matter how big or small.

Below, we will list the main difference between toxic and positive cultures, explain how positive culture improves employee success, and give a few tips on how businesses can create a better, more effective workplace environment.

Positive Vs Toxic: Importance of Corporate Culture

While there are several types of organizational culture, each with a set of its own advantages and disadvantages, the main difference between toxicity and positivity is employee motivation level. Team members who understand and share the company’s long-term vision are more involved in the process and are ready to invest extra effort when necessary — which, predictably, boosts productivity and leads to success. Teams that support each other are more efficient than individuals working on their own.

In contrast, the worst case of a toxic work culture is not just people working on their own without any strategic alignment; it is about people working against each other in a highly competitive environment driven by profits alone. Toxic company leaders do not prioritize employee’s success, motivation, and engagement levels — they only care about revenues. But such an attitude is always counter-productive in the long run.

Another alarming characteristic of a toxic culture is the fear of voicing any suggestions to the management. The ‘us’ vs ‘them’ mindset — with ‘us’ being working drones with no corporate social responsibility and ‘them’ being criticizing bosses with the power to punish (never reward) — is a highly destructive scenario that can sabotage even the best business plans and ideas.

At the same time, a positive work culture is harder to define because it can vary greatly from one business to another. The ultimate goal is to create a supporting, productive, and open environment, but there is more than one way to foster teamwork and collaboration for the company’s ultimate success. Below, we will discuss some of the already proven methods — starting with factors that boost employee engagement and improve productivity.

Major Factors Improving Employee Engagement & Productivity

Acknowledgment of employees’ work is one of the top factors influencing productivity, and yet, different surveys show that many professionals lack recognition from their management. At the same time, feeling appreciated can have a very positive effect on employee retention rates, minimizing turnover and boosting company morale. Besides monetary compensation, management can recognize professional efforts by:

• Celebrating achievements;
• Introducing improved fitness and healthcare packages;
• Properly compensating overtime with days off;
• Sending regular questionnaires — sometimes, it’s enough to ask!

Another emerging trend that affects both corporate cultures and employee morale is the shift toward more flexible work hours. In many cases, flexible hours have led to an increase in employee productivity, though it is safe to assume that this correlation is not always direct. The introduction of flexible hours is the surest way to avoid micro-management — another motivation and productivity killer. Flexible work week also implies more responsibility, which is already a sign of trust and appreciation from management.

However, as important as recognition is, other factors also affect employee productivity:

• Upskilling and reskilling programs: upskilling and reskilling are more effective than external hiring. In most cases, the cost of retraining an existing employee is lower than hiring and educating a new person. But it’s not just about money — investing in existing staff is another sure way to show appreciation.
• Clear communication of company goals: this involves both short- and long-term goals and depends on company leadership. A clear definition of roles and responsibilities eliminates doubt, thus creating a safer, more secure work environment.
• Inclusion and empowerment: an inclusive environment starts with promoting gender equality and racial non-discrimination, but it does end there. Once again, empowering employees is about effective leadership, allowing workers room for expression, responding to their feedback and suggestions — that is, including relevant parties in the corporate decision-making process.
• Work-life balance: compensating overtime, keeping the distance during vacation schedules, and allowing some remote hours when necessary is the bare minimum companies can provide. Some may even go further and consider introducing a four-day workweek, an experiment that has already proven successful in many industries. This strategy may improve work-life balance and boost employee happiness levels, but it may not be suitable for any business.

Another equally important factor influencing employee productivity is a purely technical one — the right tools. Up-to-date equipment, functional collaboration platforms, and timely technical checks can help create efficient environments with minimal distractions.

Identifying Weak Areas in a Corporate Culture

Fostering a positive work culture in the workplace is a continuous process that will always have some room for improvement. Still, the common weak areas to keep an eye on are:

• Communication patterns: monitor the flow of information in a company to see if it is transparent and open. It is important that everyone understands both the long-term goals and tasks at hand. In a customer-centric company, transparent communication within a team usually results in higher customer satisfaction, too — because employees ‘transmit’ company values to clients.
• Decision-making process: depending on the company size and structure, this process may not always be fully negotiable, but it should at least involve all relevant parties. Collaborative decision-making partners can help maintain positivity, which often results in the creation of innovative products.
• Risk tolerance: risk-averse companies often skewer towards stagnation, which is synonymous with a toxic work environment. On the other hand, too much risk-taking in a business can turn it into an unnecessary gamble that leads to stress and employee burnout. So, it is about a reasonable risk-taking level for a given industry.
• Leadership style: some industries are more conservative than others and may lean towards a centralized management style. Still, a company or a department should also have leaders to motivate and inspire.
• Behavioral patterns: it is not difficult to spot a dissatisfied, passive employee. Most of the time, some passivity can stem from personal circumstances, but this mood should not spread. Again, keeping an eye for such trends heavily relies on efficient leadership.
• Team adaptability: teams who are ready to welcome change and experiment are usually more engaged and successful. On the other hand, change-averse teams are a sure sign of overall employee dissatisfaction.
• Onboarding and offboarding patterns: HR management is not the only department responsible for welcoming people to a team or seeing them leave. Collaboration and support are as important for welcoming a new person to a team as they are for seeing someone off to a new place of work. Team attitudes towards newcomers and colleagues about to quit are one of the critical characteristics of a corporate culture — and these attitudes should lean towards positivity, of course.

Strategies to Improve & Maintain Positive Engagement Levels

As mentioned, building and maintaining a supportive work culture is a continuous process that requires regular adjustments. Even with minimal employee turnover, projects, moods, and circumstances in the team change over time — and leaders should immediately respond to any alarming changing in their professional environment. As a rule, these strategies help keep up positive engagement levels and enhance company values:

• Regularly ask for feedback to make sure everyone on the team is satisfied;
• Welcome suggestions on improving internal company policies;
• Plan ahead and set realistic project estimates;
• Clearly communicate project goals and employee responsibilities;
• Don’t get obsessed with exact numbers and deadlines, use the red-yellow-green (RIG) performance assessment scale instead;
• Stay flexible and respond to any project changes without overloading employees;
• Empathize diversity and inclusion in the team;
• Prioritize expertise and professionalism above everything else;
• Invest in education to boost employee retention for long-term business development;
• Create efficient onboarding and offboarding programs;
• Avoid micromanagement and focus on team flexibility instead.

Finally, recognize employees based on their personality types — people react to praise in different ways. For some, it’s enough to hear that they’ve done a great job; some others would rather prefer a more tangible bonus — from a few days off to new workplace equipment, whatever fits. Once again, knowing how employees would like to be acknowledged for their work is about knowing and understanding your colleagues — something all team leaders should do.

Conclusion

The importance of maintaining a positive corporate culture is not just a transient trend — it is a major factor influencing the success of a business. Human talent is the main driving force in any enterprise, which is why HR management and company leaders should strive to create a welcoming environment for qualified professionals. Besides minimizing employee turnover, boosting engagement levels, and improving team productivity, a positive corporate culture can help nurture innovation and enhance customer relations.

Professionals who have the expertise to drive a business forward will not linger in toxic teams — or will not even join such teams in the first place. With this in mind, it is important to keep an eye on behavioral and communication trends in a business to catch the early signs of emerging toxicity and take all necessary measures to address those signs.