Table of Contents
Introduction
Culture Is the Hidden Engine of Talent Strategy
When thinking about what attracts and retains top talent, company culture might not be the first thing that comes to mind - but it's more important than you think. A company's culture reflects and influences its values, beliefs and attitudes, in addition to levels of employee engagement, productivity and job satisfaction.
We surveyed 1,089 technology professionals in partnership with Brandata and found that nurturing and managing a positive and engaging company culture is pivotal for businesses of all sizes in attracting, retaining and developing their employees.
43%
would stay at their current job for great culture - even with a higher-paying offer elsewhere
44%
say finding an organization with better company culture is the main reason they'd search for a new job
1,089
tech professionals surveyed in partnership with Brandata
This guide will help you better understand your company's culture as well as provide tactics for maintaining and improving it over time. By investing in and managing a strong company culture, your business can foster a supportive and engaging work environment that attracts and retains top talent, enhances employee well-being and drives business success.
Section 1
Why Company Culture Matters
Company culture can significantly impact employee satisfaction and your organization's overall success. It's a cyclical concept - its foundation generates effects that ultimately feed back into and drive the state of company culture itself. What you build today shapes who you attract tomorrow, and who you attract shapes what you build next.
Key Insight
Culture isn't a perk or a side project: it's the operating system your business runs on. Get it right and it compounds. Get it wrong and the damage spreads faster than most leaders expect.
Section 1: Continued
Positive Culture vs. Negative Culture
The difference between a positive company culture and a negative company culture shows up directly in your ability to attract, engage, and retain talent. Here's what each looks like in practice:
Positive Culture
When employees feel valued and supported
- Higher employee engagement and job satisfaction
- Lower voluntary turnover
- Stronger sense of belonging and loyalty
- Culture becomes a recruitment selling point
- Top talent actively seeks you out
Negative Culture
When employees feel undervalued or unsupported
- Employee disengagement, burnout and stress
- Increased voluntary turnover
- Turnover contagion drives away candidates
- Reputation damage across review platforms
- Compounding costs to productivity and bottom line
Research Finding
Candidates are wary of organizations with known poor company culture and are more likely to hesitate before accepting job offers - making a negative culture a direct drag on hiring pipeline quality.
Section 2
Understanding Your Company Culture
In order to effectively promote and cultivate a positive company culture, you first need to understand your existing culture and how it's perceived, both by your employees and by people outside the business.
How to Assess Your Culture
Start by evaluating the values, beliefs, attitudes and behaviors that shape how employees interact with each other, customers and the business as a whole.
Review Internal Documents
Carefully review your mission statement, policies and procedures, and employee handbooks to understand the culture you've formally defined.
Gather Employee Input
Conduct surveys and focus groups to learn how employees perceive your culture, what they value most, and where they see room for improvement.
Get an External Perspective
Review platforms and social media reveal what people outside your business are saying about your culture; often the most honest signal you'll find.
Key Takeaway
All of these activities will help you better understand and describe your company culture to anyone inside or outside of your business, and as you progress through your assessment, you'll recognize which type of culture you're currently fostering.
Section 2: Continued
The Four Types of Company Culture
According to business professors from the University of Michigan, there are four key types of company culture. Understanding which type describes your organization is the foundation for everything that comes next.
01
Clan Culture
Highlights cross-team collaboration. Feels like a family - people work closely together, share a strong sense of community, and prioritize consensus.
02
Adhocracy Culture
Encourages employees to share ideas and take risks. Values innovation, adaptability and individual initiative above all else.
03
Market Culture
Emphasizes how each employee can contribute to the business's financial success. Results-driven and competitive - performance is everything.
04
Hierarchy Culture
More traditional, focuses on the hierarchical chain of command. Structured and process-driven, with clear policies, roles and procedures.
Section 2: Continued
How to Describe Your Company Culture
It's one thing to know what your company culture is like - it's another to describe it successfully to candidates, employees and the public. Keep these five principles in mind:
- Build off your business's general company culture type
- Incorporate your business's core values
- Integrate your business's mission statement
- Consider how workplace interactions shape daily experience
- Highlight unique employee and company characteristics
Section 3
Curating and Refining Your Company Culture
Once you have a clear internal and external understanding of your company culture, you're ready to take steps to maintain, manage and improve it over time. It's essential to recognize that maintaining or changing a company's culture requires deliberate effort and consistent actions over time.
Remember
A positive and engaging workplace culture improves employee retention, reduces voluntary turnover and attracts sought-after candidates. These aren't soft outcomes - they directly impact your hiring costs, team performance and employer brand.
Section 3: Continued
A Framework for Changing Company Culture
Transforming culture doesn't happen overnight, but it does happen deliberately. Follow these steps to drive meaningful change:
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01
Perform an Initial Assessment
Evaluate your current culture to identify its values, norms, behaviors and areas for improvement. Use employee surveys, focus groups, interviews or other feedback mechanisms to get the full picture.
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02
Define the Desired Culture
Think about your company's mission, values and goals to determine the culture you want to build. Identify gaps between where you are and where you want to be, then work to bridge them.
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03
Communicate the Desired Company Culture
Discuss and explain the culture shift with employees so everyone understands the new direction, which builds buy-in and improves satisfaction and retention rates. Externally, share the evolution on social media, your website and industry forums, and make sure it's reflected in your job descriptions to attract the right talent.
Section 3: Continued
Maintaining and Managing Company Culture
Changing culture is one challenge. Sustaining it is another. These five practices keep your culture healthy and evolving:
Lead by Example
Leaders should continuously communicate, reinforce and model the values and behaviors expected from employees. Culture flows from the top down - and employees follow what they see, not what's written on the wall.
Request Feedback
Provide regular manager check-ins, anonymous surveys, suggestion boxes and open forums. Employee feedback creates an optimistic culture that values continuous improvement.
Address Issues Promptly
Minor problems left unaddressed grow into major cultural damage. Responding quickly prevents negative ripple effects from spreading across your team and eroding trust.
Celebrate Success
Recognize, reward and celebrate hard work and accomplishments. Celebration boosts morale, builds community and reinforces the values that define your culture.
Bottom Line
By keeping these practices in mind, your company can successfully change, maintain and manage its culture based on current internal and external perceptions; your recruiting and retention numbers will follow.
Conclusion
Culture Is a Long Game, and Worth Playing
Company culture is a critical factor in any business's long-term success. It substantially impacts employee satisfaction, retention and the overall performance of the company. Fostering an effective and sustainable company culture takes time and effort - but the returns compound.
With a clear understanding of your current culture, a defined vision for where you want to go, and consistent actions to get there, your business can provide a positive culture that ensures you retain and attract the talent you need to succeed.
Remember
Culture isn't a one-time initiative: it's an ongoing commitment. The companies that win on talent are the ones that treat culture as a strategic function, not a side effect.
