Company culture shapes the employee experience every day. It’s the reason people look forward to work—or count down the hours until they can log off.
From the energy in the office (or Zoom room) to the way teams collaborate, company culture drives employee empowerment and determines whether staff feel connected and motivated—or burned out and quietly checking out. As a leader, you play a key role in shaping that outcome.
To help guide you, let's explore what company culture is, why it matters, and how to build a team culture that prioritizes your business goals and your staff’s well-being equally.
What is company culture?
Company culture refers to the shared values, attitudes, and behaviors that define how an organization operates and its employees interact. It’s reflected in leadership decisions, workplace dynamics, and the overall work environment, contributing to everything from daily workflows to long-term business strategies.
A strong workplace culture is intentional, aligning with a company’s mission statement and business goals while ensuring a positive employee experience.
These four elements contribute to a thriving corporate culture:
1. Shared values and purpose: A company’s core values define a company’s identity and influence every decision. When leadership upholds these values consistently, it builds trust among team members and encourages them to contribute with confidence.
2. Open communication and transparency: A strong work culture relies on honesty and clarity. When leaders communicate openly, employees feel informed and included. Regular feedback—through employee engagement surveys or direct conversations—helps surface concerns and improve the workplace.
3. Employee recognition and appreciation: Recognizing employee contributions strengthens employee engagement and retention. For example, formal awards and simple verbal shoutouts go a long way toward reinforcing positive behaviors.
4. Opportunities for growth and development: A great workplace supports continuous learning through mentorship and career progression pathways. Investing in employees’ professional development attracts and retains top talent, creating an innovative, future-ready workforce.
4 types of workplace cultures
While no two companies operate exactly the same way, most workplace cultures fall into these four categories:
1. Clan culture
This type of culture feels more like a close-knit, people-centric work environment than a traditional workplace. Teamwork, mentorship, and shared values are at the core, creating an environment where employees feel like family. Leaders act more as mentors than authority figures, and collaboration is key.
- Benefits: High job satisfaction, strong employee retention, and a deep sense of belonging.
- Challenges: Without a clear structure, important decisions can take longer. Some employees may also feel leadership is too informal or unclear.
2. Adhocracy culture
An adhocracy culture emphasizes risk-taking, creativity, and rapid adaptability. Companies with this culture prioritize innovation and reward new ideas. Startups and tech-driven businesses often embrace this type of culture to stay competitive.
- Benefits: Employees feel empowered to take initiative, leading to groundbreaking ideas and a dynamic workplace that attracts top talent.
- Challenges: A fast-paced, evolving work culture can create instability and turnover, especially if employees lack clear expectations or support.
3. Market culture
A market culture is competitive and results-oriented, with a strong focus on achieving business goals. Success is measured by performance metrics, and the company rewards high achievers. Sales-driven industries and large corporations often adopt this corporate culture to maintain a competitive edge.
- Benefits: Encourages productivity, efficiency, and a strong drive to achieve goals. Recognizing employee performance motivates teams.
- Challenges: High-pressure environments can lead to burnout, and prioritizing results over employee experience may impact work-life balance and employee engagement.
4. Hierarchy culture
This culture thrives on structure, clear roles, and well-defined workflows. Because it creates consistency and ensures compliance, it's a common choice for government agencies and large corporations with complex operations.
- Benefits: Predictability and clear expectations help employees understand their roles and responsibilities in a way that promotes a more stable work environment.
- Challenges: A rigid structure can slow decision-making, limit flexibility, and sometimes stifle innovation, making it harder for businesses to adapt to change.
Why does a good company culture matter?
A strong company culture makes employees feel valued and supported—and that’s what drives real, lasting success. Here’s why cultivating a positive, empowering work environment matters:
Creates an environment where employees thrive and excel
A supportive organizational culture sets the stage for productivity. When leaders establish clear expectations and encourage collaboration, team members feel more engaged and motivated. Employees also feel more purposeful when the culture is positive.
Encourages long-term employee satisfaction and commitment
Businesses that prioritize employee experience see lower turnover and higher loyalty. A culture that supports work-life balance, personal growth, and meaningful recognition makes attracting and retaining top talent easier. When people feel connected to their company’s mission statement, they’re more likely to invest in its long-term success.
Empowers employees to generate ideas and solutions
An innovative corporate culture encourages creativity and problem-solving. When leaders provide a psychologically safe space that welcomes new ideas, employees feel inspired to take initiative. This drives innovation and helps organizations adapt to change more effectively.
How to build company culture: 7 steps
A thriving workplace culture doesn’t happen by accident. It requires intention, strategy, and consistent effort. Follow these seven steps to get started:
1. Define your values and vision
Every strong corporate culture starts with a clear mission statement and a well-defined set of shared values. These guiding principles shape how an organization operates and define expectations for team members.
A well-communicated mission ensures that all employees understand the company’s goals and their role in achieving them. Leaders should integrate these values into hiring practices and daily interactions so they’re more than just words on a page.
2. Prioritize employee well-being
Companies that focus on work-life balance see better employee well-being. Offer mental health support and flexible work arrangements to help employees feel supported. Creating wellness programs, encouraging regular breaks, and respecting cultural differences contributes to a positive company culture.
3. Empower and engage employees
Encourage autonomy and solicit employee feedback. This creates a safe space for open discussion, which fosters a sense of trust. Companies should implement survey tools to evaluate employee engagement and adjust based on feedback. Workers who feel heard are more likely to be invested in their work.
4. Encourage teamwork
Collaboration plays a vital role in a thriving workplace culture. Foster strong relationships between team members for better communication and overall job satisfaction. Organizations can promote teamwork by implementing mentorship programs and encouraging cross-departmental collaboration.
5. Recognize and reward employees
Recognize workers for their contributions to strengthen morale and drive employee retention. Whether through formal recognition programs or performance-based incentives, acknowledging hard work fosters loyalty and motivation. Consistently celebrate wins, big or small, to build a culture where employees feel valued.
6. Promote continuous learning
Offer career development programs and skill-building workshops to engage and motivate team members. Companies that invest in their workforce create a work environment that empowers employees to tackle new challenges and grow.
7. Lead by example
Culture starts at the top. Leaders must embody the company’s values in their actions, decisions, and communication because employees take cues from them. Transparency, ethical decision-making, and accountability set the tone for a strong organizational culture. When leadership demonstrates respect and inclusion, those behaviors become part of the company’s DNA.
How to improve company culture: 4 tips
Here are four effective ways to evaluate and strengthen your workplace culture:
1. Gather perspectives from leadership and employees
Ask leaders and team members to describe the company’s work culture in their own words. Do their perspectives align? If leadership envisions a collaborative workplace, but employees describe a disconnected and rigid work environment, a gap needs addressing. Hosting leadership discussions and conducting anonymous employee feedback surveys can provide valuable insights into how culture is perceived at different organizational levels.
2. Observe how core values show up in daily operations
A company’s values should be evident in its daily interactions, workflows, and decision-making. Look for real-life examples of core values in action, from how leaders support their teams to how success is celebrated. For example, there’s a disconnect if a company claims to prioritize work-life balance, but employees feel pressured to work long hours.
3. Monitor employee sentiment and key culture metrics
Data-driven insights can reveal whether your corporate culture is thriving or needs improvement. Review survey results, employee retention rates, and turnover patterns to see areas where your workplace culture supports (or hinders) employee satisfaction. Exit interviews are also a valuable tool, offering unfiltered feedback on why employees choose to leave.
4. Take action and measure progress over time
Improving workplace culture is an ongoing process. Once you’ve gathered insights, it’s time to implement meaningful changes—whether it’s adjusting policies, enhancing recognition programs, or increasing transparency. Regularly reassess through employee feedback, surveys, and one-on-one check-ins to track progress. A company that listens, adapts, and continuously improves creates a workplace where employees feel valued and motivated to do their best work.
Build a stronger company culture with Oyster
Having a well-defined company culture isn’t just a perk—it’s a strategic advantage that shapes decision-making, boosts retention, and creates an environment where employees thrive. When built with intention, it strengthens teams, attracts top talent, and separates good workplaces from great ones.
Oyster makes it easy to build a team that fits your work culture, no matter where they are. Access to top talent in 180+ countries allows you to expand your workforce while ensuring that every new hire aligns with your company’s mission.
Find the right people for your team by exploring Oyster’s Talent Network today.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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