“A company’s culture is the foundation for future innovation. An entrepreneur’s job is to build the foundation.”
Brian Chesky, co‑founder and CEO of Airbnb, captures the importance of organisational culture today. In a fast‑moving economy where companies expand quickly, a clear, healthy culture is essential. Research supports this: in a Deloitte survey, 82% of respondents said a strong organisational culture is a competitive advantage. Organisational culture describes the behaviours, interactions and shared values of employees, as well as how they relate to their personal goals and the organisation’s purpose. It combines all the internal and external factors that shape performance, engagement and workplace relationships.
Culture matters for everyone involved. A positive organisational culture builds goodwill, reduces turnover and absenteeism, and supports employee development. It boosts productivity, encourages collaboration and helps develop leaders at all levels. When employees grow personally and professionally, the organisation benefits at a micro level and contributes to broader economic health at the macro level.
5 Tips to Improve Organisational Culture
Given how central culture is to performance and retention, organisations should be deliberate about shaping it. The following practical tips can help create a healthier workplace culture.
- Improve communication and relax rigid chains of command: Open, clear communication across levels is a cornerstone of a healthy workplace. Invite input, listen to ideas, and show that opinions matter. Flattening overly strict hierarchies can strengthen trust, speed decision‑making and encourage contributions from more people.
- Use gamification and an employee rewards system: Recognition motivates employees and improves turnaround and efficiency. A structured reward programme—ranging from wellness initiatives and perks to performance bonuses and small everyday benefits—supports job satisfaction. Introducing friendly competition through gamified tasks or team challenges can increase engagement; research shows gamification can drive meaningful improvements in employee involvement.
- Organise group building exercises: Relationships among co‑workers shape the everyday experience at work. Team building — such as excursions, community service, workplace celebrations, or group fitness classes — strengthens bonds and makes work more enjoyable. Regular social and team events help employees connect and foster a supportive atmosphere.
- Provide solid personal development opportunities: Growth and learning are powerful drivers of job satisfaction. Organisations should offer on‑the‑job training, skill workshops, mentoring and support for further education. These opportunities not only improve job performance but also deepen employees’ sense of belonging and loyalty, making the workplace more attractive to current and future hires.
- Practice transparency and involve employees in key decisions: A sense of belonging and psychological safety encourages commitment and productivity. Involving employees in decisions that affect them increases inclusiveness and ownership. Greater transparency and participation reduce turnover and support the long‑term health of organisational culture.
As Louis V. Gerstner Jr., former CEO of IBM, observed:
“Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization’s makeup and success — along with vision, strategy, marketing, financials, and the like… I came to see, in my time at IBM, that culture isn’t just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.”