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How to Build a Strong Organizational Culture

Learn practical approaches to developing a strong organizational culture that enhances collaboration, employee satisfaction, and business performance.

The key to a successful organization is to have a culture based on a strongly held and widely shared set of beliefs that are supported by strategy and structure. When an organization has a strong culture, three things happen: Employees know how top management wants them to respond to any situation, employees believe that the expected response is the proper one, and employees know that they will be rewarded for demonstrating the organization's values.

Overview Background Business Case What Is Organizational Culture? Factors That Shape an Organization's Culture Creating and Managing Organizational Culture Practices to Develop Culture Communications Metrics Legal Issues Global Issues

Employers have a vital role in perpetuating a strong culture, starting with recruiting and selecting applicants who will share the organization's beliefs and thrive in that culture, developing orientation, training and performance management programs that outline and reinforce the organization's core values and ensuring that appropriate rewards and recognition go to employees who truly embody the values.

This toolkit covers the following topics:

• The importance of having a strong organizational culture.
• The employer's role in fostering a high-performance culture.
• Definitions of organizational culture.
• Factors that shape an organization's culture.
• Considerations in creating and managing organizational culture.
• Practices to ensure the continuity and success of an organization's culture.
• Communications, metrics, legal, technology and global issues pertaining to organizational culture.

An organization's culture defines the proper way to behave within the organization. This culture consists of shared beliefs and values established by leaders and then communicated and reinforced through various methods, ultimately shaping employee perceptions, behaviors and understanding. Organizational culture sets the context for everything an enterprise does. Because industries and situations vary significantly, there is not a one-size-fits-all culture template that meets the needs of all organizations.

A strong culture is a common denominator among the most successful companies. All have consensus at the top regarding cultural priorities, and those values focus not on individuals but on the organization and its goals. Leaders in successful companies live their cultures every day and go out of their way to communicate their cultural identities to employees as well as prospective new hires. They are clear about their values and how those values define their organizations and determine how the organizations run. See  What does it mean to be a values-based organization?

Conversely, an ineffective culture can bring down the organization and its leadership. Disengaged employees, high turnover, poor customer relations and lower profits are examples of how the wrong culture can negatively impact the bottom line. See  Toxic Culture Top Reason People Quit .

Mergers and acquisitions are fraught with culture issues. Even organizational cultures that have worked well may develop into a dysfunctional culture after a merger. Research has shown that two out of three mergers fail because of cultural problems. Blending and redefining the cultures, and reconciling the differences between them, build a common platform for the future. In recent years, the fast pace of mergers and acquisitions has changed the way businesses now meld. The focus in mergers has shifted away from blending cultures and has moved toward meeting specific business objectives. Some experts believe that if the right business plan and agenda are in place during a merger, a strong corporate culture will develop naturally. See  Managing Organizational Change and Managing Human Resources in Mergers and Acquisitions.

Business Case

If an organization's culture is going to improve the organization's overall performance, the culture must provide a strategic competitive advantage, and beliefs and values must be widely shared and firmly upheld. A strong culture can bring benefits such as enhanced trust and cooperation, fewer disagreements and more-efficient decision-making.

Culture also provides an informal control mechanism, a strong sense of identification with the organization and shared understanding among employees about what is important. Employees whose organizations have strongly defined cultures can also justify their behaviors at work because those behaviors fit the culture. See  Toxic Workplace Cultures Hurt Workers and Company Profits .

Company leaders play an instrumental role in shaping and sustaining organizational culture. If the executives themselves do not fit into an organization's culture, they often fail in their jobs or quit due to poor fit. Consequently, when organizations hire C-suite executives, these individuals should have both the requisite skills and the ability to fit into the company culture.

See  SHRM Inclusive Workplace Culture Specialty Credential

What Is Organizational Culture?

An employer must begin with a thorough understanding of what culture is in a general sense and what their organization's specific culture is. At the deepest level, an organization's culture is based on values derived from basic assumptions about the following:

• Human nature. Are people inherently good or bad, mutable or immutable, proactive or reactive? These basic assumptions lead to beliefs about how employees, customers and suppliers should interact and how they should be managed.
• The organization's relationship to its environment. How does the organization define its business and its constituencies?
• Appropriate emotions. Which emotions should people be encouraged to express, and which ones should be suppressed?
• Effectiveness. What metrics show whether the organization and its individual components are doing well? An organization will be effective only when the culture is supported by an appropriate business strategy and a structure that is appropriate for both the business and the desired culture.

Culture is a nebulous concept and is often an undefined aspect of an organization. Although extensive academic literature exists relating to the topic of organizational culture, there is no generally accepted definition of culture. Instead, the literature expresses many different views as to what organizational culture is.

Organizational culture can manifest itself in a variety of ways, including leadership behaviors, communication styles, internally distributed messages and corporate celebrations. Given that culture comprises so many elements, it is not surprising that terms for describing specific cultures vary widely. Some commonly used terms for describing cultures include aggressive, customer-focused, innovative, fun, ethical, research-driven, technology-driven, process-oriented, hierarchical, family-friendly and risk-taking. See  6 Ways to Become a More Empathetic Organization .

Because culture is difficult to define, organizations may have trouble maintaining consistency in their messages about culture. Employees may also find it difficult to identify and communicate about perceived cultural inconsistencies. See  Defining Organizational Culture and Culture Conversation Starters .

Factors That Shape an Organization's Culture

Organizational leaders often speak about the unusual natures of their company cultures, seeing their domains as special places to work. But organizations such as Disney and Nordstrom, which are well-known for their unique cultures, are rare.

Most company cultures are not that different from one another. Even organizations in disparate industries such as manufacturing and health care tend to share a common core of cultural values. For example, most private-sector companies want to grow and increase revenues. Most strive to be team-oriented and to demonstrate concern for others. Most are driven, rather than relaxed, because they are competing for dollars and market share. Some of the cultural characteristics that distinguish most organizations include the following.

At the heart of organizations' cultures are commonly shared values. None is right or wrong, but organizations need to decide which values they will emphasize. These common values include:

• Outcome orientation. Emphasizing achievements and results.
• People orientation. Insisting on fairness, tolerance and respect for the individual.
• Team orientation. Emphasizing and rewarding collaboration.
• Attention to detail. Valuing precision and approaching situations and problems analytically.
• Stability. Providing security and following a predictable course.
• Innovation. Encouraging experimentation and risk-taking.
• Aggressiveness. Stimulating a fiercely competitive spirit.

Degree of hierarchy

The degree of hierarchy is the extent to which the organization values traditional channels of authority. The three distinct levels of hierarchy are "high"—having a well-defined organizational structure and an expectation that people will work through official channels; "moderate"—having a defined structure but an acceptance that people often work outside formal channels; and "low" —having loosely defined job descriptions and accepting that people challenge authority.

An organization with a high level of hierarchy tends to be more formal and moves more slowly than an organization with a low level of hierarchy.

Degree of urgency

The degree of urgency defines how quickly the organization wants or needs to drive decision-making and innovation. Some organizations choose their degree of urgency, but others have it thrust on them by the marketplace.

A culture with high levels of urgency has a need to push projects through quickly and a high need to respond to a changing marketplace. A moderate level of urgency moves projects at a reasonable pace. A low level of urgency means people work slowly and consistently, valuing quality over efficiency. An organization with high urgency tends to be fast-paced and supports a decisive management style. An organization with low urgency tends to be more methodical and supports a more considered management style.

People orientation or task orientation

Organizations usually have a dominant way of valuing people and tasks. An organization with a strong people orientation tends to put people first when making decisions and believes that people drive the organization's performance and productivity. An organization with a strong task orientation tends to put tasks and processes first when making decisions and believes that efficiency and quality drive organization performance and productivity.

Some organizations may get to choose their people and task orientations. But others may have to fit their orientation to the nature of their industry, historical issues or operational processes.

Functional orientation

Every organization puts an emphasis on certain functional areas. Examples of functional orientations may include marketing, operations, research and development, engineering or service. For example, an innovative organization known for its research and development may have at its core a functional orientation toward R&D. A hospitality company may focus on operations or service, depending on its historical choices and its definition in the marketplace.

Employees from different functions in the company may think that their functional areas are the ones that drive the organization. Organizational leaders must understand what most employees perceive to be the company's functional orientation. 

Organizational subcultures

Any organization can have a mix of subcultures in addition to the dominant culture. Subcultures exist among groups or individuals who may have their own rituals and traditions that, although not shared by the rest of the organization, can deepen and underscore the organization's core values. Subcultures can also cause serious problems.

For example, regional cultures often differ from the overall culture that top leadership tries to instill. Perhaps aggressiveness that is common in one area may not mesh with a culture emphasizing team building. Or an organization with a culture built around equality may have trouble if the national culture emphasizes hierarchy and expects people to bow to authority. Employers must recognize those differences and address them directly.

Creating and Managing Organizational Culture

An organizational culture tends to emerge over time, shaped by the organization's leadership and by actions and values perceived to have contributed to earlier successes. A company culture can be managed through the cultural awareness of organizational leaders and management. Managing a culture takes focused efforts to sustain elements of the culture that support organizational effectiveness. See  Addressing the Six Sources of Workplace Cultural Conflicts .

How culture develops

An organization's customs, traditions, rituals, behavioral norms, symbols and general way of doing things are the visible manifestation of its culture; they are what one sees when walking into the organization. The current organizational culture is usually due to factors that have worked well for the organization in the past. See  How to Create a Culture of Civility .

Founders typically have a significant impact on an organization's early culture. Over time, behavioral norms develop that are consistent with the organization's values. For example, in some organizations, resolution of conflicts is hashed out openly and noisily to create widespread consensus, whereas in other places disputes are settled hierarchically and quietly behind closed doors.

Though culture emerges naturally in most organizations, strong cultures often begin with a process called "values blueprinting," which involves a candid conversation with leaders from across the organization. Once the culture is framed, an organization may establish a values committee that has a direct link to leadership. This group makes sure the desired culture is alive and well. For values blueprinting to work, organizations must first hire people who live the values and have the competency needed to perform the job.

Sustaining a culture

The management of organizational culture starts with identifying a company's organizational culture traits or "artifacts." Artifacts are the core business activities, processes and philosophies that characterize how an organization does business day-to-day.

Identifying these traits—and assessing their importance in light of current business objectives—is a way to start managing culture. Three broad concepts help identify the traits specific to a culture:

• Social culture. This refers to group members' roles and responsibilities. It is the study of class distinctions and the distribution of power that exists in any group.
• Material culture. This involves examining everything that people in a group make or achieve and the ways people work with and support one another in exchanging required goods and services.
• Ideological culture. This is tied to a group's values, beliefs and ideals—the things people view as fundamental. It includes the emotional and intellectual guidelines that govern people's daily existence and interactions.

Leaders and managers within an organization should approach culture management by initially gaining an understanding of the common traits found in all businesses. Then, they should take the following steps to manage their organization's culture:

• Identify common artifacts or traits, including those from the standpoint of an organization's social, material and ideological culture.
• Convene groups of employees—representatives from all levels, functions and locations of the organization—to assess the validity, significance and currency of key artifacts.
• Subject those traits to a rigorous assessment of their underlying shared assumptions, values and beliefs.
• Summarize findings and share them with all participants to solicit additional insights.
• Create a culture management action plan. The plan should enhance traits that support corporate growth or organizational effectiveness and correct traits that might hinder a company's advancement.

Typically, shared assumptions and beliefs originate with an organization's founders and leaders. Because those beliefs proved successful (otherwise the company would not exist and the leaders would not be in their positions), often they go unchallenged; however, those assumptions and beliefs might be outdated and may hinder future success. See 6 Steps for Building an Inclusive Workplace and The Relationship Between Culture and DE&I .

Practices to Develop Culture

When an organization does a good job assessing its culture, it can then go on to establish policies, programs and strategies that support and strengthen its core purpose and values. In aligned organizations, the same core characteristics or beliefs motivate and unite everyone, cascading down from the C-suite to individual contributors.

There are many tools for developing and sustaining a high-performance organizational culture, including hiring practices, onboarding efforts, recognition programs and performance management programs. The biggest challenge is deciding how to use these tools and how to allocate resources appropriately.

Hiring practices

Effective hiring practices can help an organization capitalize on its culture. Traditionally, hiring focuses primarily on an applicant's skills, but when a hire's personality also fits with the organization's culture, the employee will be more likely to deliver superior performance.

On the other hand, ill-fitting hires and subsequent rapid departures cost approximately 50 percent to 150 percent of the position's annual salary. Unfortunately, nearly one in three newly hired employees' leaves voluntarily or involuntarily within a year of hiring, and this number has been increasing steadily in recent years.

Some hiring practices to ensure cultural fit include:

• Looking at each piece of the organization's vision, mission and values statements.  Interview questions  should hone in on behaviors that complement these areas. For example, if the organization works with a lot of intensity, then job applicants should display that natural intensity to be considered for hire.
• Conducting a cultural fit interview. Ask questions that elicit comments about organizational values such as honesty or integrity. If a candidate's description of the worst place he or she ever worked sounds just like the organization where he or she is interviewing, the candidate probably will not be successful.
• Leaving discussion of company culture for later. Do not tell candidates about culture up front. First, listen to what they have to say about their experiences and beliefs. This tactic will reveal more candid responses to help determine whether they are a fit for the organization.
• Making sure at least three people are involved in the hiring process. Different people will see and hear different things. These varied perspectives give a clearer understanding of the person being considered for hire.

Searching for employees who will fit in seamlessly can have drawbacks. The biggest mistake an organization can make is to paint an inaccurate picture of itself as it tries to attract candidates. If new hires discover they have been sold a bill of goods, they will not be happy; they will probably not stick around, and, while they are around, morale will decline.

Another possible drawback is that people are more reluctant to take negative actions against people like themselves. As a result, mediocre workers are more likely to stay employed if they share the cultural values. Similarly, although an organization's comfort level is palpable when the culture is aligned, experts say, too much comfort can result in groupthink and complacency.

Onboarding programs

The best  employee onboarding  process teaches newcomers the employer's value system, norms and desired organizational behaviors. Employers must help newcomers become part of social networks in the organization and make sure that they have early job experiences that reinforce the culture.

Reward and recognition programs

These programs are key mechanisms employers can use to motivate employees to act in accordance with the organization's culture and values. For example, if teamwork is a core value, bonuses should value teamwork and not be based on individual performance. Employers should also put the spotlight on those who personify the company's values. See  Employee Recognition Tech Must Align with Company Culture .

Performance management programs

Employees who share values and aspirations tend to outperform those in environments that lack cohesiveness and common purposes. Performance management programs can greatly affect corporate culture by clearly outlining what is expected from employees as well as by providing a feedback tool that informs employees about proper behavior. See  Performance Management That Makes a Difference: An Evidence-Based Approach .

Communications

Conflicting messages regarding corporate culture may create distrust and cynicism, which can prompt, or help employees justify, actions as deleterious as embezzlement. Experts say that cultural inconsistencies may also cause workers to grow discouraged, to believe management is disingenuous, to doubt statements from higher-ups and to be less inclined to give their best effort.

Organizations may be investing significant time and money in creating a culture but may not be reaping the commensurate rewards—especially if executives, supervisors and rank-and-file employees have differing perceptions of the company's culture. Employers must therefore ensure that the organization clearly and consistently communicates its culture to all employees. See  HR's Role in Creating a Culture of High Trust: Q&A with Richard Fagerlin.

Assessing organizational culture is a crucial step in developing sound strategies that support enterprise objectives and goals. But how do you measure something as potentially tough to describe as culture? After identifying the key dimensions of culture such as values, degree of hierarchy, and people and task orientations, performing these next steps will help organizations assess culture:

• Develop a cultural assessment instrument. This instrument should enable members of the organization to rate the organization on the key cultural dimensions, as well as on aspects of the organization not covered on the assessment.
• Administer the assessment. Survey respondents should include individuals at all levels, functions, divisions and geographical units of the organization.
• Analyze and communicate about assessment results. Leaders and managers should discuss areas of agreement and disagreement about the organization's culture.
• Conduct employee focus groups. Just because top management leaders agree on organizational culture does not mean that all employees see things that way.
• Discuss culture until consensus forms around key issues. Focus on "Who are we?" and "What makes us who we are?" Organizations that decide that where they are now is not where they want to be may need to look at moving the organization to embrace a different culture.

Cultural assessments, and other activities such as cultural audits and 360-degree feedback, may also help uncover cultural inconsistencies. Then leaders can eliminate the inconsistencies. For example, if customer service is a focus of the company's culture, evaluate how much time employees spend visiting customer sites, how much interaction they have with customers, what customer service training they receive and other indicators of a customer service focus. See  The New Analytics of Workplace Culture and Building a Data-Driven Culture Health Index .

Legal Issues

Employers that emphasize cultural fit in their recruitment and selection process can be vulnerable to discrimination claims if they are not careful. Employers should ensure that hiring practices and selection decisions based on a cultural fit rationale do not result in discriminating against any applicants who may not be "just like" the selectors.

Employers should also be aware that certain types of organizational cultures (for example, cultures that are highly paternalistic or male-dominated) may tend to perpetuate disparities in promotions, compensation and other terms of employment. Those disparities may violate anti-discrimination laws. 

Global Issues

Research suggests that national culture has a greater effect on employees than the culture of their organization. Organizational leaders should understand the national cultural values in the countries in which the organization operates to ensure that management and company practices are appropriate and will be effective in operations in those countries. National cultural differences should be considered when implementing organizational culture management initiatives in global businesses.

Managers must be able to respond to nuances in communication styles, as well as deal with different expectations that employees have of their leaders across national cultures. Not meeting those expectations may doom the global organization's chance for success in particular countries.

These issues become even more complex in global business mergers. Success in international mergers depends on the merged organization's willingness to enable people with different cultural perspectives to engage in meaningful and valuable discussions about the new business.

Helping Expatriate Employees Deal with Culture Shock

3 Steps in Aligning Culture Across the Globe

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Organizational Culture: Definition, Examples, & Best Practices

By: Grace He | Updated: December 10, 2023

You found our article on organizational culture: definition, examples, & best practices .

Organizational culture is the rules, values, beliefs, and philosophy that dictate team members’ behavior in a company. The culture consists of an established framework that guides workplace behavior. Examples include integrity, teamwork, transparency, and accountability. The purpose of organizational value is to differentiate your organization from others and act as a model for decision-making processes.

The ideas in this article are similar to improving company culture , employee engagement activities , having fun with employees , and creating a positive work environment .

This article includes:

• definition of organizational culture
• types of organizational culture
• organizational culture examples
• organizational culture best practices
• importance of organizational culture
• workplace culture examples

Let’s get started.

Definition of organizational culture

Organizational culture refers to the shared values, beliefs, norms, behaviors, and practices that characterize a particular workplace or company. This culture is the collective personality of an organization that shapes the way employees interact, make decisions, and approach their work. Essentially, corporate culture serves as a blueprint for how business is done within the organization and influences the overall work environment and employee experiences.

At its core, company culture reflects the company’s history, leadership style, and values. These cultural elements create a sense of identity and belonging among employees, as they collectively align their actions with the established norms and expectations. Office culture can be explicit, with clearly defined and communicated values. Alternatively, this culture can be implicit, existing in the unspoken behaviors and attitudes of employees. Either way, this system greatly influences employee perceptions of roles, camaraderie, collaboration, problem-solving approaches, and the organization’s external reputation.

Understanding and managing this culture is crucial because it directly affects employee engagement, performance, and overall organizational success. A positive and healthy culture can foster employee satisfaction, motivation, and loyalty, increasing productivity and innovation. On the other hand, a toxic or misaligned culture can result in high turnover, internal conflicts, and hindered performance. Organizations that actively shape their culture tend to have a more engaged and cohesive workforce. In turn, this system helps firms navigate challenges and adapt to changes more effectively.

Several factors can determine your company’s culture, including the following.

1. Leadership Principles

Leadership principles are like the guiding rules that leaders follow to shape an organization’s culture. Good leaders are honest, open, and accountable. These supervisors encourage open communication and value different ideas. Additionally, good leaders believe in the strength of a diverse team. Strong leaders inspire and empower their teams, setting an example of continuous learning and adaptability, which promotes a culture of growth and resilience. In essence, leadership principles are the foundation of an organization’s culture.

2. Type of Business

The type of business greatly influences its organizational culture. For example, a tech startup often fosters an innovative and agile culture that encourages experimentation and risk-taking. In contrast, a more traditional, established company may prioritize stability and hierarchy. Similarly, service-oriented businesses often focus on customer-centric cultures, while creative industries emphasize individuality and creative expression. Regardless of the business type, the firm’s values and practices shape the culture, influencing how employees interact, collaborate, and innovate within the organization.

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3. Clients and Staff

Clients and staff significantly impact work values. Clients influence culture by shaping products, services, and communication based on their preferences. Positive client experiences foster excellence and innovation, while challenges can prompt cultural shifts. Staff contribute to culture through values, behaviors, and collaboration. Engaged employees create a culture of teamwork and dedication, with leadership playing a key role. Prioritizing employee well-being cultivates a culture of empowerment and growth.

Types of organizational culture

According to professors Robert Quinn and Kim Cameron at the University of Michigan, there are four main workplace culture types. These types are the Adhocracy Culture, Clan Culture, Hierarchy Culture, and Market Culture.

1. Adhocracy Culture

This culture type is characterized by innovation, risk-taking, and adaptability. Organizations with an adhocracy culture value creativity, experimentation, and a dynamic approach to problem-solving. These firms thrive in fast-changing environments and encourage employees to explore new ideas and initiatives. Flexibility and a willingness to take calculated risks are key features of this culture.

For instance, Google is known for its adhocracy culture. The company encourages employees to pursue innovative ideas and projects, even allowing them to dedicate some of their work time to personal initiatives. This culture of experimentation and risk-taking has led to the development of products and services beyond its core search engine, such as Google Maps and Google Glass.

2. Clan Culture

Clan culture centers around collaboration, teamwork, and a sense of community. Organizations with a clan culture prioritize employee engagement, open communication, and mutual support. There is a familiar atmosphere where employees often refer to each other as a “family.” This culture values employee well-being, personal growth, and long-term relationships.

Zappos, an online shoe and clothing retailer, is often cited as an example of clan culture. The company places a strong emphasis on employee happiness and engagement. The firm’s core values include “Deliver WOW Through Service” and “Build a Positive Team and Family Spirit.” Zappos’ commitment to creating a positive and collaborative work environment is a hallmark of clan culture.

3. Hierarchy Culture

Hierarchy culture is characterized by structure, stability, and a strong focus on processes. Organizations with this culture type have clear lines of authority, well-defined roles, and standardized procedures. These firms often value efficiency, predictability, and maintaining stability through established protocols.

IBM is an example of a company with a hierarchy culture. With a history of engineering and technology, IBM emphasizes structured processes and a clear chain of command. The company’s approach to innovation is often more planned and methodical, focusing on research and development driven by a defined hierarchy of expertise.

4. Market Culture

The market culture emphasizes competition, results, and achievement. Organizations with a market culture prioritize goals, performance metrics, and the bottom line. These firms encourage individual initiative, assertiveness, and a strong focus on delivering customer value. This culture type is often associated with a results-driven and competitive environment.

Amazon is a prime example of a market culture. The company is highly results-oriented and customer-focused, prioritizing efficiency, productivity, and competitive success. Amazon’s leadership principles, such as “Customer Obsession” and “Bias for Action,” underscore its market-driven approach to decision-making and achieving results.

Organizational culture examples

Adopting a positive team spirit affects a company’s success. It is little wonder why several companies develop cultures that align with their goals. Here are five examples of companies with great work cultures.

Netflix has an admirable work culture. The entertainment company is popular for its culture that emphasizes people over process. At Netflix, all employees can participate actively in important decision-making processes. There are no inhibiting rules, and staff members can communicate freely and directly. Netflix chooses employees based on integrity, teamwork, passion, humility, innovation, and selflessness.

2. Microsoft

Microsoft has a commendable work culture mainly focused on a growth mindset. The company is popular for employees dedicating their skills, time, and money to help make a difference in the world. This difference contributes to employee diversity and inclusion, considering Microsoft has employees from all backgrounds and walks of life working to ensure customer satisfaction.

3. Patagonia

Patagonia, an outdoor apparel and gear company, is renowned for its commitment to environmental sustainability and social responsibility. The company’s work culture deeply aligns with its core values, which include advocating for environmental causes and encouraging employees to live purposeful lives. A sense of purpose and a mission-driven approach to business categorize Patagonia’s culture. The firm encourages employees to participate in environmental activism, and the company supports their involvement through initiatives such as paid environmental internships.

4. Salesforce

Salesforce, a leading customer relationship management software company, is known for its Ohana culture. This system emphasizes inclusivity, philanthropy, and community engagement. The company’s strong commitment to social impact is reflected in its 1-1-1 model, where it donates 1% of its equity, time, and products to charitable causes. Salesforce fosters a culture of innovation and creativity by encouraging employees to think outside the box and take risks. The company’s work culture promotes continuous learning through its Trailhead platform, which offers various courses and resources for skill development.

Adobe is a multinational software company and has cultivated a culture of creativity, innovation, and employee development. The company’s culture encourages employees to explore their passions and experiment with new ideas. Adobe’s “Kickbox” initiative provides employees with resources to pursue innovative projects, fostering a culture of experimentation and risk-taking. The company promotes diversity and inclusion and provides platforms for employees to share their unique perspectives. Adobe also values work-life balance, offering various programs to support employees’ well-being. This culture of creativity and employee support has contributed to Adobe’s reputation as a leader in creative software and a desirable workplace for creative professionals.

6. Nordstrom

Nordstrom, a high-end fashion retailer, has a strong customer service culture and commitment to employee empowerment. The company values a customer-centric approach and empowers employees to make decisions that prioritize customer satisfaction. Nordstrom’s culture is built on trust and autonomy, allowing employees to take ownership of their roles and contribute to the company’s success. The company also focuses on employee development, offering opportunities for advancement and growth within the organization.

7. Wegmans Food Markets

Wegmans is a regional supermarket chain known for its culture of employee development, community engagement, and work-life balance. The company places a strong emphasis on treating employees like family and providing growth opportunities. Wegmans offers extensive training programs, mentorship opportunities, and pathways for advancement within the organization. The company’s culture features a supportive and collaborative environment. Leaders encourage employees to excel and contribute to the community. Wegmans also prioritizes employee well-being through initiatives such as flexible work schedules and wellness programs.

Organizational culture best practices

Many companies seek best practices to help adopt a healthy culture. However, this process involves more than printing your new values on the office handbook, distributing it to employees, and expecting an instant change. Adopting a thriving work culture does not work like magic. Rather, culture building requires consistency and a roadmap that helps build these best practices. Here are useful organizational cultural best practices to help you rebrand your company culture.

1. Communicate with your Employees

Communicating with your employees is the first step in adopting a healthy work culture. You should discover what employees like or dislike about the work process, leadership, and environment. You should also find out what motivates team members and redesign the existing work culture that is not serving these needs. Similarly, it would help if you encouraged employees to engage more in decision-making. If you can get employees to feel great working with you, then there is a high chance you will notice an increase in productivity.

2. Encourage Creativity and Innovation

A company that encourages employees to be risk-takers, creative, or innovative will likely experience more growth. A single idea may be all you need to launch your company to the next level, and it could be sitting in an employee’s head. You can make a difference in your corporate culture by encouraging employees to undertake personal tasks that align with the company’s goals.

3. Create a Diverse Workspace

Companies like Microsoft did not just become influential overnight. Diversity is a major part of workplace culture. You can incorporate diversity by creating a fun and inclusive workspace where workers from different walks of life can collaborate on impactful projects. By encouraging an equitable onboarding process, you can create a diverse company culture that encompasses all employees and gives them a sense of belonging. You can also conduct confidential surveys or meetings where employees candidly communicate their feelings.

4. Hire Employees With Similar Values

To promote a long-lasting and successful business culture, hiring workers with similar values is one practice you should take seriously. You cannot sustain a positive work culture if new hires think and act differently from existing employees. Hiring based on qualifications or talent is not enough. You should also pay attention to your worker’s personal beliefs and principles, like honesty, innovation, passion, and creativity. You should ensure employees have what it takes to treat clients in a way that mirrors the company’s culture. Before hiring new staff, these questions should always be on your mind.

5. Recognize and Reward Culture-Aligned Behavior

Recognizing and rewarding culture-aligned behavior is like a boost for the right workplace atmosphere. When leaders praise employees for showing the values that the company believes in, it makes a big impact. Sometimes, this praise can be public, like in team meetings, or it can be in private one-on-one talks. Sometimes, managers can offer actual rewards like bonuses, making the connection between good behavior and appreciation even stronger. Doing this process consistently creates a cycle where leaders encourage good behavior, and workers begin to act accordingly.

6. Let Leadership Reflect the Company’s Culture

If you want a healthy company culture, then you must model it yourself. It is advisable to access your personal values and work behavior to ensure they align with the new work culture you want. Your HR team and other high-ranking executives should also mirror these new values. For instance, you cannot encourage punctuality in employees when you are always the last to arrive at work. Healthy culture practices work when team members obey the rules and regulations. Your employees tend to follow suit if the leadership structure embraces this healthy work culture.

7. Invest in Employee Development

Investing in employee development is like putting effort into helping employees grow. For instance, offer training and chances to learn new skills. Also, show employees how they can move up in the company to give them a reason to work hard. Implementing mentoring programs where experienced employees guide newer ones and discuss performance can also help. When companies take care of work skills and overall well-being and balance, it shows they really care about employees. These steps build a culture where employees want to stay, work hard, and succeed together.

Importance of organizational culture

Aside from increasing a company’s success rate, corporate culture produces a well-structured and highly functional workspace. Here are some reasons why culture is important for every company.

1. Improves Your Brand Identity

A company’s culture influences its inner workings and how others see it, affecting its reputation. A positive corporate culture should focus on more than just satisfying your employees. Your culture can also be a great marketing strategy because customers who share similar values will want to do business with you. A workplace culture speaks volumes and helps you stand out from your competitors.

2. Boosts Customer Satisfaction

Customer satisfaction is a vital pillar of a successful business climate. When employees care about customer needs and the company prioritizes quality, it leads to loyal customers who spread the word. A culture that focuses on customer satisfaction encourages employees to go beyond meeting expectations, striving to exceed them. This belief leads to repeat business and bolsters the organization’s reputation and market presence.

3. Encourages Ethical Behavior

Ethical behavior forms the moral compass of a robust office culture. When a company values honesty, openness, and integrity, it creates a workplace where employees consistently choose what is right. An ethical culture emphasizes that the means are just as important as the ends, guiding employees to act ethically even when faced with challenges. Such a culture builds trust with customers, partners, and stakeholders while also ensuring compliance with laws and regulations. Ethical behavior is the backbone of an organization’s credibility and long-term success.

4. Retains Employees

It is rare for employees to quit a company that caters to their emotional and physical well-being. A strong culture builds an employee experience that eliminates the need to quit. Some of the most influential companies have the best performers in their industries as employees. These companies have created a workspace that values every skill and helps employees reach their full potential. Besides, a good environment reduces the turnover rate and human and financial resources depletion.

5. Fosters a Healthy Workspace

A great team atmosphere eliminates disputes, chaos, or animosity between team members. A healthy culture encourages a collaborative atmosphere where employees work to achieve the company’s goals. A workspace that caters to workers’ needs and sees others as more than just colleagues is important for a company to stand out from others. A healthy workspace accelerates the decision-making process, fuels purpose, and outlines clear expectations. Therefore, you can expect top-notch results that will benefit both the company and its customers.

Organizational culture is one of many factors that determine a company’s success. A company’s culture greatly influences the perception of others about you and your team. Thankfully, this article provides a concise overview of corporate culture and its importance. Learning about the different types and best practices can shape your current work culture for the best.

Next, check out our guide to creating a strong remote work culture .

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FAQ: Organizational culture

Here are some commonly asked questions about organizational culture.

What is organizational culture?

Organizational culture refers to the values guiding the behavior of team members in a workspace. Corporate culture is a collection of practices that reflects the company’s philosophy and expectations.

What are the best examples of organizational culture?

The best examples of workplace culture include Netflix, Microsoft, and Wegmans.

How do you improve organizational culture?

You can improve your own culture by encouraging open communication with your employees. Creating a diverse and inclusive workspace as well as encouraging innovation and creativity also helps.

Author: Grace He

People & Culture Director at teambuilding.com. Grace is the Director of People & Culture at teambuilding.com. She studied Industrial and Labor Relations at Cornell University, Information Science at East China Normal University and earned an MBA at Washington State University.

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People & Culture Director at teambuilding.com.

Grace is the Director of People & Culture at teambuilding.com. She studied Industrial and Labor Relations at Cornell University, Information Science at East China Normal University and earned an MBA at Washington State University.

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How to Create a Culture of Ethics & Accountability in the Workplace

• 22 Aug 2023

Ethics and accountability play significant roles in company culture. From employee satisfaction and productivity to maintaining a favorable reputation with customers and business partners, prioritizing ethical decision-making and accountability has numerous benefits.

An ethical company culture results from hard work and intentional actions. Before diving into how to foster that kind of environment, here’s an overview of why ethics and accountability are important in the workplace.

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The Importance of Ethics and Accountability at Work

Ethics and accountability are crucial to a productive work environment. They help shape your organization's culture, promote trust, ensure responsible behavior, and contribute to its success.

“Being a leader involves responsibility for others,” says Harvard Business School Professor Nien-hê Hsieh in the online course Leadership, Ethics, and Corporate Accountability . “As a leader, you’ll want to create a culture not just of legal and regulatory compliance but more fundamentally grounded in reliability, ethics, and goodwill.”

When it comes to employees, you must create a culture that both encourages them to work hard and saves the company from lawsuits. Wrongful termination claims can cost your organization upwards of $100,000 in legal expenses , but you can help avoid them with a track record of ethical decision-making .

How to Create a Culture of Accountability

Despite its growing importance, creating a culture of accountability can be challenging. This is largely because organizational change can suffer from poor employee buy-in, an unclear vision, or inadequate understanding among managers. According to a recent Partners In Leadership study on workplace accountability, however, 91 percent of respondents included accountability at the top of their company’s leadership development needs.

So, how can you build a culture of accountability? Here are five ways to get started.

1. Lead by Example

Establishing a culture of ethics and accountability starts with setting an example as an organizational leader . By proactively creating a space where you encourage ethical decision-making and accountability, your team will be more likely to do the same.

Integrity and accountability are also vital to leading effectively .

“Shaping and sustaining an organization’s culture is a critical dimension of a leader’s responsibilities toward their employees,” Hsieh says in Leadership, Ethics, and Corporate Accountability . “In addition, the right culture—one in which employees feel they’re treated fairly and with respect—can benefit the organization from an economic perspective.”

Leading by example also promotes trust within your organization, which can be critical to establishing accountability among your team. Although 40 percent of employees report unethical behavior in the workplace, they’re 24 percent more likely to report it if they trust leadership.

To increase trust, promote accountability, and encourage ethical decisions, it’s prudent to practice what you preach.

Related: How Does Leadership Influence Organizational Culture?

2. Provide Meaningful Feedback

Giving feedback is an effective way to promote accountability within your team. Research by Gallup shows that employees who receive regular, meaningful feedback are four times more likely to be engaged.

“Within a company, one way of building accountability is to incorporate key performance indicators, or KPIs, into evaluations of managers and other employees,” Hsieh says in Leadership, Ethics, and Corporate Accountability . “It would then be important to regularly review how well employees are meeting those KPIs and to reaffirm that the metrics chosen are indeed useful and relevant ones.”

When providing feedback, be direct but empathetic. Let your team know you come from a place of caring and consideration, with the goal of helping them grow and improve professionally.

Remember that asking for and receiving meaningful feedback is essential to creating a culture of accountability. Request input on how you’re doing as a leader, and show initiative to improve. This can encourage your team members to continuously hold you—and each other—accountable.

3. Combat Workplace Bias

Building a culture of ethics and accountability requires that everyone proactively combats workplace bias and stereotypes .

Workplace bias refers to unconscious inclinations based on personal experience, cultural background, or social conditioning. Bias can affect your decisions and actions and be explicit (you’re aware of it) or implicit (you’re unaware of it).

Stereotypes—overgeneralized perceptions and beliefs about groups of people—can also lead to unfair decisions and harmful actions. They can be based on:

• Sexual orientation
• Religious affiliation

According to Leadership, Ethics, and Corporate Accountability , promoting diversity is one of the best ways to overcome workplace bias and stereotypes.

“It’s integral to create a sense of belonging within an organization,” Hsieh says in the course. “Having diverse people in upper management roles ensures that minority employees have role models they can relate to. But it can also be helpful to foster meaningful interactions among people in different demographic groups; for example, through mentorships or teamwork in small groups.”

Other strategies include hosting workshops to increase cultural awareness, encouraging interactions between diverse groups, and holding colleagues accountable when bias or stereotypes affect workplace dynamics.

4. Give Employees a Voice

So that you and other leaders receive meaningful feedback and stay accountable, it’s vital to give employees a platform to share their thoughts. However, doing so can be unnerving.

“Finding ways to promote employee voice is not always an easy or comfortable task,” Hsieh says in Leadership, Ethics, and Corporate Accountability . “It involves both formal and informal channels of engagement. It involves real listening. And it may even feel threatening to managers and require a sense of vulnerability.”

Yet, employees need to feel heard—beyond defending their basic rights—to boost their morale.

“Fairness may require that companies establish formal channels for employees to speak out not only about rights violations but also about wants, needs, concerns, and suggestions for improvement,” Hsieh says in the course.

Despite the potential discomfort, giving employees a platform can have numerous benefits. For example, you can increase their satisfaction and reduce costly turnover by addressing their concerns. It can also lead to more innovation and creative problem-solving .

5. Develop an Authentic Leadership Style

Authentic leadership is defined by principle-driven decisions. It requires putting your beliefs ahead of your company’s success and prioritizing employee satisfaction and relationships.

The benefits of having an authentic leadership style include:

• Enhanced workplace relationships
• Increased productivity
• Improved working environments

To develop an authentic leadership style, reflect on your values, principles, and mission. What’s important to you above all else? What do you believe in? Self-awareness is one of the first steps to becoming an authentic leader.

You also need to practice authentic leadership in your daily life. For instance, by making decisions that prioritize relationships with your team and colleagues. Continuously committing to developing your leadership style through accountability and implementing feedback can ensure you garner long-term results in creating an ethical work environment.

Take Accountability

Taking accountability can be difficult—especially in the workplace. However, it’s critical to fostering an ethical, productive work environment and protecting your organization from negative financial or legal actions.

If you struggle to navigate business ethics , consider sharpening your leadership skills . One way to do so is by taking an online course, such as Leadership, Ethics, and Corporate Accountability . Through engaging in an interactive learning experience featuring real-world business examples, you can develop a framework for understanding and delivering on your responsibilities to customers, employees, investors, and society.

Ready to improve your workplace accountability? Enroll in Leadership, Ethics, and Corporate Accountability —one of our online leadership and management courses—and download our free e-book on how to become a more effective leader.

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3CO01 Business, Culture and Change in Context

The task assigned to students is to create a presentation on “The Business Environment” to assist the HR team in understanding the various factors that impact the business environment.

AC 1.1 Application of an analysis tool (such as PESTLE) to examine the key external forces impacting or likely to impact an organisation’s activities

The students conduct a comprehensive analysis of external forces using various strategic models such as PESTLE, SWOT, Porter’s Five Forces, and BMC. These models serve as guides for professionals, assisting them in understanding the organisational operational dynamics.

The importance of conducting a PESTLE analysis, according to Battista (2021), lies in its ability to thoroughly examine political, economic, social, technological, legal, and environmental factors. Professionals diligently collect pertinent information and assess potential risks to the business environment. The PESTLE analysis is a highly effective tool for facilitating workforce planning, marketing strategies, product development, and organisational change.

Additionally, Wilson (2021) clarifies that the SWOT analysis tool assesses the organisation’s Strengths, Weaknesses, Opportunities, and Threats. Students are expected to elaborate on the benefits and drawbacks of each model when performing analyses using these tools. They must also clarify how these analytical tools affect organisational decision-making procedures.

AC 1.2 An explanation of an organisation’s business goals and why it is important for organisations to plan for how they will achieve these. Your explanation should include examples of planning, such as how a business has been structured or specific policies introduced or people practices followed, in order for business goals to be achieved

Students are urged to pick a specific company from their nation to respond to this inquiry. A British multinational corporation named Unilever might be used as an example when responding to the question.

An organisation’s business objectives have a significant impact on its development and effective operation. These goals not only help the organisation grow, but they also inspire workers and other stakeholders by helping them to align with the organisation’s vision. In the case of Unilever, their objectives center on enhancing livelihoods, enhancing people’s health and wellbeing, and providing goods that actively lessen their impact on the environment.

In order to create a favorable work environment for their employees, businesses engage in strategic planning. They work hard to create policies that complement the practices and overarching goals of the organization. In order to ensure that the business makes steady progress in achieving its goals, professionals and managers play a critical role in planning for business continuity.

AC 1.3 An explanation of an organisation’s products and/or services and main customers

Students are given the distinct task of evaluating the variety of goods and services that the company offers to the market. For instance, Unilever offers a wide variety of products to a wide range of customers, including food, beauty, and personal care items. This clientele includes people of all ages, including babies and the elderly.

Students are expected to detail the specific benefits that each customer segment receives from the business in their presentation, emphasising the distinctive value propositions and benefits catered to the various needs and preferences of various customer demographics.

AC 1.4 A short review of different technologies available to people professionals and how these can be used to improve working practices and collaboration. You might consider for example, technologies relating to communications, information sharing, record keeping, learning, wellbeing, productivity or security

According to Mohdzaini’s research (2021), technology has a significant impact on how engaged employees are in fulfilling their future roles and responsibilities. Students are encouraged to identify and investigate various types of technologies in light of this, such as:

• Internet: The global network that has transformed information access, research, and communication.
• Electronic communication: Social media platforms and smartphone use, which enable frictionless connectivity and cooperation.
• Technologies for managing files and sharing documents: Programs that facilitate data organisation and encourage effective information sharing and retrieval.
• Additionally, students should focus on the following areas as they delve deeper into how technology improves working practices:
• Communication: Technological developments that result in better internal and external communication channels for the organisation.
• Efficiency improvement: How technology streamlines operations and streamlines processes, resulting in higher productivity.
• Security is the application of technological solutions to protect against cyber threats and safeguard data.
• Productivity: The degree to which technology empowers workers and enables them to perform better in their individual roles.

Students can develop a thorough understanding of the advantages of technology on the future of work and organisational performance by examining these technological aspects.

AC 2.1 What is meant by workplace (organisation) culture

According to Young’s findings (2021), organisational culture is the collection of norms, behaviors, and values that influence how people behave, interact, and relate to one another within an organisation. Students are urged to go into detail about both positive and negative cultural aspects as well as the part that human resources professionals play in creating cultures that give work meaning.

An environment with a positive culture promotes teamwork, creativity, and employee happiness, which increases productivity and fosters a sense of belonging. On the other hand, toxic behaviors, poor communication, and resistance to change are all signs of a negative culture and can lead to low morale and potential organisational problems.

Professionals in human resources must be involved in creating meaningful cultures. These individuals can have an impact on the company’s values, promote open communication, support diversity and inclusion, and put policies in place that promote employee growth and well-being. People managers contribute to a work environment where people can find meaning and fulfillment in their jobs by actively shaping the culture. This fosters improved performance and the success of the organisation as a whole.

AC 2.1 Why it is important to foster an appropriate and effective workplace culture

Employees need to understand how the organisation works in order to be able to express their ideas and forge close relationships with their employers. Culture plays a crucial role in this process.

A workplace culture that prioritises diversity and inclusion is one that is successful. It encourages worker retention, motivation, and engagement, which helps build strong teamwork. Additionally, culture has a big impact on how well people perform both individually and as an organisation, which shapes the company’s overall success and accomplishments.

AC 2.2 How organisations are whole systems in which different areas and aspects such as structure, systems and culture, are all inter-related

Students explore various organisational systems and structures, including hierarchical, divisional, functional, and matrix systems. They emphasise the significance of aligning an organisation’s values with its strategic goals and operations, emphasising the significance of value-driven organisations. Students also describe the efforts made by human resources professionals to create extensive systems that influence both individual behaviors and the culture of the entire organisation with the goal of creating a setting that promotes development, productivity, and fulfillment.

AC 2.2 An example of how good people practice, and an example of how bad people practice can impact other parts of the organisation or beyond the organisation (for example through developing new and better ways of doing things or through poor practice stimulating new legislation)

Students demonstrate how employing good people practices has a positive effect on an organisation in one scenario. Professionals in the human resources field emphasise the value of learning and development by providing examples of how investing in employees’ knowledge and skills improves their capabilities and overall performance. A skilled and motivated workforce, for instance, is cultivated through the implementation of regular training programs and the provision of opportunities for professional growth, which boosts productivity, enhances decision-making, and improves employee retention.

Students, however, draw attention to an instance in which unethical behaviour has a negative impact on the organisation. Insufficient support for employees’ mental and physical health, for instance, can result in increased stress, decreased productivity, and low morale among staff members. Professionals in the human resources field intervene to solve this problem by establishing procedures that put employees’ welfare first. To reduce stress and enhance general health, they might develop counselling services, mental health assistance networks, and wellness programs.

Students must understand that these scenarios can change based on their experiences and interactions within an organisation. A variety of examples can be used to highlight the effects of both good and bad people practices, underscoring the crucial role that human resources professionals play in establishing a positive and effective organisational culture.

AC 2.3 How individuals may learn and develop in different ways in organisations and how this might be accommodated in assessing and developing skills and capabilities

In creating learning policies that support a culture where learning is highly valued for the development of skills and knowledge, Hayden (2021) emphasises the critical role of people professionals. The learning concepts listed below may be investigated by students when studying this subject:

• Learning and Competitiveness: Describe how a culture of ongoing learning helps to increase an organisation’s ability to compete. Organisations that place a high priority on learning are better able to innovate, adapt to changes, and maintain a competitive edge in the market.
• In order to develop a skilled and adaptable workforce, consider the importance of workplace learning. Employees are empowered by workplace learning to pick up new skills, stay current, and make valuable contributions to the expansion of the company.
• Learning’s Importance for High Performance: Explain the specific ways that learning affects both individual and organisational performance. Continuous learning among employees tends to boost performance, which boosts the efficiency of the entire organisation.
• Learning Trends: Describe the most recent developments in employee education, including techniques for locating knowledge gaps and addressing reasons for poor performance. Organisations can better meet the unique needs of their employees by customising their learning initiatives by analysing learning trends.

Students can gain a thorough understanding of the crucial role that learning policies play in forming a culture of continuous development and growth within an organisation by exploring these learning concepts.

AC 3.1 Why it is important for an organisation’s business that change is predicted, planned and effectively managed

George’s work from 2021 emphasises the importance of change as a component of organisational progress and exhorts professionals to actively plan and manage change for successful results. The following ideas should be investigated by students as they study this subject:

• Investigate the various catalysts for organisational change, such as heightened competition, technological advancements, or unsettling occurrences like market discontinuity. Professionals who are aware of these triggers are better able to anticipate and handle change.
• Change’s Effect on Business: Analyse how the change will affect the organisation’s operations, structure, and workforce. Students should consider how change will impact various aspects of the business because it can both present challenges and opportunities.
• Making Change Plans: Explain the role and motivation for bringing change to an organisation. Planning effectively is necessary to guarantee that change is effectively managed, effectively communicated, and in line with the objectives and vision of the organisation.

By taking into account these ideas, students can learn important lessons about the significance of change management and the proactive approach necessary to successfully navigate change, ultimately resulting in favourable outcomes for the organisation.

BATTISTA, M. (2021) PESTLE analysis. Available at https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-analysis-factsheet [Accessed 18th July 2022]

GEORGE, S. (2021) Change management. Available at https://www.cipd.co.uk/knowledge/strategy/change/management-factsheet [Accessed 18th July 2022]

HAYDEN, D. (2021) Learning and development strategy and policy, available from https://www.cipd.co.uk/knowledge/strategy/development/factsheet [Accessed 18th July 2022]

MOHDZAINI, H. (2021) Technology and the future of work. Available at: https://www.cipd.co.uk/knowledge/work/technology/emerging-future-work-factsheet [Accessed 18th July 2022]

WILSON, M. (2021) SWOT analysis. Available at https://www.cipd.co.uk/knowledge/strategy/organisational-development/swot-analysis-factsheet [Accessed 18th July 2022]

YOUNG, J. (2021) Organisational culture and cultural change, available from https://www.cipd.co.uk/knowledge/culture/working-environment/organisation-culture-change-factsheet [Accessed 18th July 2022]

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What Is Corporate Culture?

• How It Works
• Characteristics
• Development

The Bottom Line

• Business Essentials

Corporate Culture Definition, Characteristics, and Importance

Corporate culture refers to the values, beliefs, and behaviors that are common or understood at a company. These determine how a company's employees and management interact, perform, and handle business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people that the company hires.

A company's culture will be reflected in elements such as its dress code, business hours, office setup, employee benefits , turnover, hiring decisions, treatment of employees and clients, client satisfaction, and every other aspect of operations .

Key Takeaways

• Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management should interact and perform.
• It can affect employee hiring and retention, performance and productivity, business results, and company longevity.
• Corporate culture is influenced by national cultures and traditions, economic trends, international trade, company size, and products.
• Corporate culture represents the core values of a company’s ideology and practice.
• Four common types of corporate culture are clan culture, adhocracy culture, market culture, and hierarchy culture.

Investopedia / Paige McLaughlin

Understanding Corporate Culture

Awareness of corporate or organizational culture in businesses and other organizations such as universities emerged in the 1960s. The term "corporate culture" developed in the early 1980s and became widely known by the 1990s. Corporate culture was used during those periods by managers, sociologists, and other academics to describe the character of a company.

Corporate culture develops from generalized beliefs and behaviors, company-wide value systems, management strategies, employee communications and relations, work environment, and attitude. As it became a more widely understood and embraced concept, it also came to include company origin stories put forth by charismatic chief executive officers (CEOs), as well as visual symbols such as logos and trademarks.

Corporate culture is created by the founders, management, and employees of a company, influencing how they act and who they hire. It then trickles down to the employees, both as characteristics of people the management team hires and as a set of unspoken expectations that employees learn to hire. Corporate culture can also be influenced by national cultures and traditions, economic trends, international trade, company size, and products.

There are a variety of terms that relate to companies affected by multiple cultures, especially in the wake of globalization and the increased international interaction of today's business environment.

• Cross-culture  refers to people from different backgrounds interacting in the business environment.
• Culture shock  refers to the confusion or anxiety people experience when conducting business in a society other than their own.
• Reverse culture shock is often experienced by people who spend lengthy time abroad for business and have difficulty readjusting upon their return.

Companies often devote substantial resources and effort to create positive cross-culture experiences and to facilitate a more cohesive and productive corporate culture for employees.

Importance of Corporate Culture

A carefully considered, even innovative, corporate culture can elevate companies above their competitors, support long-term growth, and underpin a company's longevity. Benefits of a positive corporate culture that contribute to business success include:

• Building a positive workplace environment
• Creating an engaged, enthusiastic, and motivated workforce
• Attracting high-value employees
• Improving employee morale
• Improving performance quality and productivity
• Building favorable business results

When employees feel encouraged and motivated by a positive company culture, this can reduce burnout and provide a strategic competitive advantage by reducing turnover and increasing productivity. A positive corporate culture can clarify a company's goals at all levels and provide a strategic competitive advantage. A company with a corporate culture that is attractive to a variety of employees can also benefit from workforce diversification.

The awareness and importance of corporate culture is more acute now than ever. Big Four accounting firm Deloitte found that 94% of executives believed that a distinct corporate culture is important for business success.

Corporate culture is not an inherently positive phenomenon, however. If managers or executives never take time off, for example, employees will follow their example, creating a culture of overwork. This can lead to demoralized employees who experience high levels of burnout, increasing turnover and decreasing overall company productivity.

Types of Corporate Culture

Clan culture.

Clan cultures are about teamwork and collaboration. In such a culture, those in management function as enthusiastic mentors who provide guidance to subordinates. Good relationships, encouragement, trust, and participation are key aspects. The contribution potential of every employee is a component of a clan culture. Clan culture can easily adapt to change and implement needed action quickly.

• Pros : Strong sense of belonging among employees; encourages career growth through mentorship
• Cons : Can feel hostile or exclusionary to new employees or those who aren't selected for mentoring

Adhocracy Culture

Adhocracy culture creates an entrepreneurial workplace in which executives and employees function as innovators and risk-takers. Employees are encouraged to pursue their aspirational ideas and take action to achieve results that can advance company goals. New and unconventional products and services are the main outcome of the adhocracy culture.

• Pros : Creates a flexible environment that rewards agile thinking; strong sense of innovation
• Cons : Risk of expensive projects that never become profitable; may encourage innovation for the sake of innovation, rather than tuning into actual customer needs

Market Culture

Market culture is focused on meeting specific targets and bottom-line goals. This culture creates a working environment that's competitive and demanding. Management is most interested in business results. Employees are encouraged to work hard and "get the job done" to enhance a company's market presence, profits, and stock price. While employees may feel stressed in such a workplace, they can also feel enthusiastic and excited about their work.

• Pros : Encourages goal-oriented teamwork; strong productivity ethos
• Cons : Can create competition between employees, rather than cooperation; risk of overwork or burnout

Hierarchy Culture

A hierarchy culture is a traditional corporate culture that functions according to a company's executive, management, and staff organizational structure. There is a carefully followed chain of command from top down, where executives oversee employees and their work efforts to meet specific goals. The hierarchy culture prizes stability and conventional methods of operation. Employees may feel a sense of security because of the more conservative approach to running a company.

• Pros : Clear roles, responsibilities, and objectives at all levels; stable paths of advancement
• Cons : More rigid than other work environments; difficulty resolving conflict with managers

Examples of Contemporary Corporate Cultures

Just as national cultures can influence and shape corporate culture, so can a company’s management strategy. These different cultures can seem more or less appealing to employees depending on current events and industry trends, particularly changes in hiring trends.

For example, many 21st-century tech companies, such as Meta, formerly Facebook, and Alphabet, the parent company of Google, have prioritized a culture of less traditional management strategies. These companies defined themselves as employee-friendly by offering perks such as telecommuting and free employee lunches. Alphabet's corporate headquarters in Mountain View, California offers on-site services such as oil changes, car washes, and a hairstylist.

In return, employees were expected to be highly dedicated to their employer and willing to work long hours to achieve results. This culture was intended to foster creativity, collective problem-solving, and greater employee freedom to pursue long-shot innovations. Many tech companies maintained a start-up mentality of rapidly trying new things that were not necessarily sustainable, profitable, or successful—often characterized as " move fast and break things "—long after they were public companies and no longer startups.

Progressive policies such as comprehensive employee benefits and alternatives to hierarchical leadership (even doing away with closed offices and cubicles) were trends that reflected a more tech-conscious, modern, and agile generation of corporate culture.

When tech jobs were plentiful, this culture of non-traditional management, plentiful perks, long hours, and startup mentality was seen as a benefit of tech jobs. However, beginning in August 2022, a variety of factors such as pandemic-era overhiring, rising interest rates on corporate loans, and investor demand for profitability led to the start of massive layoffs.

In 2023, more than 260,000 tech jobs were eliminated, and in the first four weeks of 2024, more than 25,000 employees were fired from 100 tech companies, including Meta, Amazon, Microsoft, and Alphabet. Many employee perks, such as on-site fitness classes or restaurants, were reduced or eliminated as workforces were cut and remaining employees worked from home more often.

As these industry trends began to change, the innovative start-up culture of tech companies began to seem less desirable to some employees than stable, traditional jobs that prioritized employee retention and balanced hours over lifestyle perks.

Characteristics of Successful Corporate Cultures

Corporate cultures, whether shaped intentionally or grown organically, express the core of a company’s ideology and practice. They affect every aspect of a business, from each employee and customer to a company's public image.

The Harvard Business Revie w has identified six important characteristics of successful corporate cultures.  All of these aspects are interconnected, shaping both internal workings and external perceptions of the company.

Whether communicated via a simple mission statement or a corporate manifesto, a company’s vision can be a powerful tool. This sets the tone of its private workings, letting employees know what the long-term goals and mission of the company are. Vision also shapes marketing and brand building, which define a company's public image in the eyes of consumers.

Values, while a broad concept, can embody the thinking and perspectives necessary to achieve a company’s vision. They can serve as a beacon for behavior necessary to progress toward all manner of success. Examples of values include fairness, trustworthiness, integrity, performance excellence, teamwork, and a high-quality customer experience. For example, Google’s famous slogan “Don’t Be Evil” is an expression of values.

Less successful corporate cultures may take elements of these characteristics and either fail to define them or, depending on leadership, embrace negative aspects of them. A company value of "profits before all," for example, can lead to the exploitation of both employees and the communities in which the company is based.

Practices are the tangible methods, guided by ethics , by which a company implements its values. For example, a company that emphasizes the importance of hiring expert, high-achieving employees would offer salaries at the top of their market range, rather than starting with low entry-level salaries and implementing an earn-your-way-to-the-top philosophy.

People come next, with companies employing and recruiting in a way that reflects and enhances their overall culture. The people hired by a company are key to bringing corporate culture to life and obtaining the high-value performances that can lead to favorable business outcomes.

For example, when an organization sets a goal of being multicultural , executives will promote managers from diverse backgrounds. These managers will in turn be more likely to hire employees from diverse backgrounds to work in every department, which can lead to a greater variety of perspectives and innovation within the business.

Narrative and Place

Lastly, narrative and place are perhaps the most modern characteristics of corporate culture. Having a powerful narrative or origin story is important for growth and public image. For example, a company that produces organic baby products might share a narrative about how the founder's struggle to find similar products for their own children led directly to the creation of the products the company now sells.

Since many companies can now be headquartered anywhere in the world, a choice of location can communicate information about the lifestyle and values that employees can expect, as well as provide branding clues to consumers.

Office design and architecture can also communicate aspects of corporate culture. An open-plan office with industrial furniture, for example, communicates to employees that the company prioritizes modern innovation and collaboration between departments. An office space with executive offices and cubicles, on the other hand, signals a more hierarchical and traditional workplace culture.

A company that prioritizes teamwork will encourage a culture of training employees to work together toward common goals. This can include concrete actions, such as managers assigning work to teams of employees rather than individuals or creating mentorship programs. It can also include non-work activities that build trust and comeraderie, such as scheduling shared lunch breaks or volunteer activities that a whole division participates in.

Employees should be encouraged and trained to work together with camaraderie and trust toward common goals. The benefits of teamwork, such as problem-solving, the development of innovative ideas, and improved productivity, should be demonstrated to the workforce.

Training and Education

A company that requires entry-level employees to already have a master's degree has already limited its workforce and demonstrated that it doesn't prioritize training its employees. One that provides the means to improve their skills while on the job, however, demonstrates that it prioritizes a culture of education and advancement for its employees. This allows the vision and goals of the company can be more reliably reached.

A culture of training and education doesn't just improve the functioning of systems within the company. It can also provide employees with a concrete path to new opportunities, allowing them to advance their careers within the companies. This can motivate individuals to learn and do more, as well as improve employee retention.

Innovation is exciting and can underscore the spirit of a company's vision. It can instill pride, confidence, and loyalty in the workforce.

There are multiple levels at which a company can prioritize a culture of innovation. There can be innovation within the products and services it produces, which encourages a culture in which employees listen to and value customer feedback on existing offerings. There can also be innovation of internal company systems, such as embracing new data management techniques or marketing platforms. These types of innovations signal a culture that responds to employee feedback and needs.

Some industries encourage a culture of innovation that embraces the "next thing" as a way of creating, rather than responding to, customer needs. This kind of innovation can be costly, leading to steep losses, investor panic, and loss of employees. For example, Meta Inc. attempted to build and brand its "metaverse" project as the next tech innovation. But consumer demand for the metaverse wasn't present, and the company lost more than $45 billion from 2020 to 2024. Facebook had overhired during that time, in part to build up its metaverse division, and had to begin laying off thousands of employees from 2022 to 2024.

Leadership is one of the most important aspects of corporate culture because leadership sets the tone for the entire company's practices and values. A company's management, including C-suite executives, should be accessible and open to providing assistance that supports all employees.

A company may say that it prioritizes mentorship and advancement, for example. But if none of its executives make time to mentor their direct reports, that aspect of corporate culture doesn't exist in practice.

If, however, executives make mentoring managers a regular and visible practice, this will encourage managers to mentor their direct reports in turn. This not only helps employees feel encouraged and valued, but it also creates a pipeline of employees who are trained and ready to rise into new management positions.

How to Develop a Corporate Culture

There is no single strategy for building a corporate culture because of the inherent differences between companies, industries, and people. However, the basic steps below may help you envision a corporate culture that spells success for your employees, clients, and company.

• Define a company's vision, values, and behaviors.
• Gather feedback from employees about your company's values, ideas, and work methods to improve the workplace environment and performance.
• Use small discussion groups, surveys, brown bag lunch meetings , or town hall-type meetings to engage your employees and give them a voice.
• Establish methods, such as training at regular intervals, to communicate company values/behaviors and determine how well they are understood.
• Employ high-quality internal communications about company goals, the working environment, and employees' roles in the company's success.
• Establish guidelines that reinforce company values, e.g., a rule that employees should not be disturbed by work phone calls, emails, or texts during vacations or other types of time off.
• Recognize employees in a positive and public manner as a reward for their contributions to corporate success.
• Ensure that management maintains a consistent behavioral approach to operations rather than cutting corners when convenient.
• Prioritize approachable leadership so that all employees may address their concerns and feel connected and valued.
• Foster teamwork rather than silos and isolation.
• Set goals for diversity and inclusion; celebrate the differences among people as you encourage consistent behavior from all.

What's Meant By "Corporate Culture"?

"Corporate culture” refers to the values, beliefs, and practices associated with a particular corporation. Corporate culture might be reflected in the way a corporation hires and promotes employees or in its corporate mission statement. For example, a company may seek to associate itself with a specific set of values, such as by defining itself as an innovative or environmentally-conscious organization.

What Are Some Examples of Corporate Culture?

There are many examples of companies with well-defined corporate cultures. Alphabet Inc., for example, is known for its employee-centric culture and its emphasis on working in a creative and flexible environment, whereas Amazon is known for its relentless pursuit of customer service and operational efficiencies. Often, national cultures will play a role in determining the kind of corporate culture that is prevalent in society. For example, Japanese corporations are known for having corporate cultures that emphasize structured hierarchies and long hours, which are markedly different from those of American or European companies.

Why Is Corporate Culture Important?

Corporate culture is important because it can support important business objectives. Employees, for example, might be attracted to companies whose cultures they identify with, which in turn can drive employee retention and new talent acquisition. Fostering a culture of innovation can be critical to maintaining a competitive edge with respect to patents or other forms of intellectual property. Similarly, corporate culture can also play a role in marketing the company to customers and to society at large, thereby doubling as a form of public relations.

Corporate culture has become a vital, even essential, ingredient in the ongoing success of a business. It represents the values, beliefs, and goals of a company, as well as the consistent behavior expected from all employees, from top to bottom.

Corporate culture is an important key to attracting and retaining employees. It can also support high-quality employee performance, ongoing achievement, and the longevity of a company.

Inc. " Corporate Culture ."

ET HR World. " Organisational Culture: Which Type Best Defines Your Company? "

Deloitte. " Core Beliefs and Culture Chairman's Survey Findings ."

NPR. " Nearly 25,000 Tech Workers Were Laid Off In the First Weeks of 2024. Why Is That? "

San Francisco Examiner. " We've Baked Too Many Muffins On a Monday": Google Cuts Back Employee Perks ."

Harvard Business Review. " Six Components of a Great Corporate Culture ."

CNBC. " Meta Loses $200 Billion in Value As Zuckerberg Focuses Earnings Call On All the Ways Company Bleeds Cash ."

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56 Company Culture Examples to Get You Inspired

These company culture examples can help you create a health work environment and foster employee engagement.

  When it comes to hiring elite candidates, if you don’t have a great company culture , you really don’t have anything.

Modern candidates rank company culture as one of the most important factors when considering career opportunities, and they can spot a bad company culture from a mile away.

What Is a Company Culture?

Two key ingredients in building a positive company culture are valuing diversity and consistently working to create an inclusive work environment that respects and celebrates employees’ different backgrounds and experiences. Company culture examples can supply the inspiration you need to launch diversity and inclusion initiatives that bring employees a sense of comfort, safety and belonging.

It’s important that your company culture accurately reflects the organization and its people, but it never hurts to learn from companies that are already getting it right. So whether your company is a small startup or a massive multinational corporation, it’s worth paying attention to strong work culture examples.

With that in mind, let’s check out some company culture examples that will help anyone interested in leveling up.

Company Culture Examples

Ampersand is a data-driven TV advertising, sales and technology company that provides advertisers with audience-first planning, scalable execution and advanced measurement of their investments. Ampersand helps advertisers target precise audience segments and evaluate campaign effectiveness by answering critical questions about reach, frequency and outcomes. The company also aims to simplify the process of planning, buying and measuring data-driven multi-screen television advertising at scale.

What makes Ampersand’s culture great: Ampersand aims to foster a culture of support and talent recognition that enables its team to succeed. It does this in a number of ways, including a signed mental health pledge to prioritize employee well-being, a dedicated DEI staff and employee resource groups , or ERGs, to foster belonging among employees with similar experiences. 

How you can apply Ampersand’s ideas: Look for ways to support your employees even outside of their day-to-day work. This might be through developing an ERG program or hiring dedicated DEI staff like Ampersand. Showing your employees that you care about their well-being, both at work and after hours, can help them feel more connected to your organization and its mission.

Achieve is a personal finance company that offers intelligent technology solutions for budgeting tools and debt management. It aims to help customers find financial independence through home equity loans, financial education and low fixed-rate personal loans. Achieve’s software engineers build products such as Achieve GOOD, a mobile application that helps users create debt payoff plans. 

What makes Achieve’s culture grea t: Achieve has employee resource groups, or ERGs, for employees who identify as Black/African American, LGBTQ+, women, Hispanic/Latinx, Asian American/Pacific Islander or military service veterans and their families. The company also boasts Talkspace, an emotional support app, as a mental health benefit. Its Freedom Family group receives two days of paid time to volunteer at a charity of their choice. 

How you can apply Achieve’s ideas : If you are looking for ways to make employees feel welcomed, ERGs are a great way for employees to connect with others who identify themselves similarly. Also, providing employees mental health benefits shows that your company cares, as does paying employees for time they may spend bettering their community. 

AlertMedia creates an employee alert and critical communications platform that enterprise companies use to safeguard workplace response to dangerous or emergent situations like natural disasters, political upheaval and disease outbreaks. The platform offers a multichannel two-way messaging system, threat intelligence and 24/7 employee safety solutions, providing direct communications on what to do during emergencies. This dedicated system ensures timely and effective responses, helping organizations protect their workforce and business throughout all phases of an emergency.

What makes AlertMedia’s culture great: AlertMedia aims to foster a workplace that’s supportive of both its team members and their community at large. It offers up to 16 weeks of paid parental leave for all new parents. It also takes time to celebrate together through quarterly teams-specific activities and company-wide events.

How you can apply AlertMedia’s ideas: To ensure a true work-life balance and healthy company culture, take time to recognize and celebrate wins with your team on a regular basis, but also give them the space they need to take care of their loved ones through your family leave and PTO policies.

CPI OpenFox

CPI OpenFox develops software solutions for the law enforcement community, serving agencies across more than two dozen states. Its OpenFox suite of products includes tools for background checks, sex offender registry management, criminal history databases and evidence tracking, available as installed software or SaaS. Additionally, its mobile app, CLAW, provides real-time access to critical information for officers in the field, even when on horseback or undercover.

What makes CPI OpenFox’s culture great: The company has a “Culture Club” committee that organizes group activities for all employees multiple times each month. Activities include bags, bubble hockey, ping pong, arcade tournaments, trivia, office Olympics, games, celebrations, potlucks and barbecues. As CPI told Built In, the company not only works hard, but it plays hard, too. 

How you can apply CPI OpenFox’s ideas: If you’re looking for opportunities to bring your team together, don’t underestimate the power of casual or celebratory gatherings. These give employees time to get to know one another outside of work, and a family friendly event can also be a great way to help team members feel more connected.

Wolverine Trading

Wolverine Trading is a proprietary trading firm and market maker specializing in a wide range of securities and derivatives, including equities, futures, ETFs and cash bonds. Founded in 1994 and headquartered in Chicago, the firm has offices in New York, San Francisco and London. As part of the Wolverine group, it also offers asset management, order execution services and technology solutions across global markets.

What makes Wolverine’s culture great: The firm boasts a casual workplace alongside an “instructive, friendly environment” and a flat organizational structure that aims to promote teamwork across the firm. It also hosts several social events including one designated firmwide outing every month, firm-sponsored happy hours and recreational clubs.

How you can apply Wolverine’s ideas: Wolverine aims to make sure all employees have access to senior staff by pairing its open door policy with an open office floor plan and planned social gatherings for team members. Create opportunities, both in the office and after hours, to make sure individual contributors and mid-level managers have opportunities to connect with senior leaders in your organization.

Inspira Financial

Inspira Financial is a fintech firm that develops health, wealth, retirement and benefits solutions for over 7 million accountholders. The company collaborates with employers, plan sponsors and record keepers to help individuals plan, save, and invest through services like automatic rollover accounts, health savings accounts and self-directed IRAs. The company also provides educational resources and tools to help clients achieve financial wellness.

What makes Inspira Financial’s culture great: While Inspira Financial offers a full range of competitive benefits, it also provides a number of other, what it calls, “soft” benefits like free membership to the in-building fitness center, a business-casual dress code and a remote work program. 

How you can apply Inspira Financial’s ideas: Put your focus on what your employees do, not just how they dress or how often they come into the office. By providing your employees with the flexibility they need to maintain their own well-being — and that of their families — you’ll have a healthier, happier and more productive workforce in the long-term. 

Forward Financing

Forward Financing is a Boston-based fintech that aims to provide fast and flexible working capital to small businesses across the United States. Using its proprietary technology, the company offers same-day funding through revenue-based financing. Since its inception in 2012, Forward Financing has provided over $2.6 billion in financing to more than 58,000 small businesses.

What makes Forward Financing’s culture great: Even though Forward Financing has team members dispersed throughout the United States, it aims to foster a fun-loving and collaborative culture — both in-person and online. Through virtual game nights, small group lunches and monthly happy hours in the company’s Boston office, the company prioritizes connection, collaboration and transparency. 

How you can apply Forward Financing’s ideas: In-person social events are great but don’t forget about your team members who are fully remote. If you have a partially hybrid/partially remote workforce, look for opportunities to include those you don’t see on a weekly basis. This might be through annual or semi-annual events like game or movie nights. This will help ensure it’s not only your hybrid employees that benefit from a great company culture. 

Terakeet is a marketing firm specializing in owned asset optimization, or OAO, for large enterprise clients. By leveraging existing resources such as client databases, social media content, blogs and whitepapers, Terakeet maximizes their value and use. This approach helps brands optimize and unify their owned assets to create more meaningful customer interactions.

What makes Terakeet’s culture great: Terakeet offers a staggering number of perks and benefits that help its remote-first team maintain a healthy work-life balance which, in turn, improves the company’s overall culture. Highlights include unlimited PTO, a company-wide winter shut-down, 12 weeks of paid family leave and a 401(k) match up to 5 percent. 

How you can apply Terakeet’s ideas: If you invest in your employees, their well-being and their future, you’re sure to see dividends paid out through increased employee retention and day-to-day productivity. A happy, healthy, balanced workforce is the engine that will keep your organization humming. 

BrainPOP is an edtech software company providing digital learning tools and curricula for K-8 students and teachers, as well as professional learning for adults. The platform acts as a digital hub for assignments, quizzes, games and interactive activities, offering a playful approach to education that helps students better connect with subjects ranging from math to music. Used by homeschool families, private and charter schools, and public school districts, BrainPOP supports social-emotional growth through engaging videos and activities.

What makes BrainPOP’s culture great: As a learning platform, BrainPOP is committed to providing employees the opportunity to learn, grow and develop as professionals. Like the students the company aims to help, employees are empowered to pursue their own development and it strives to promote from within. 

How you can apply BrainPOP’s ideas: Provide your employees with learning opportunities and one-on-one mentorship opportunities. Send groups of your employees to professional meetings and conferences so they can learn together while bonding as a team. Develop clear succession plans and aim to promote employees from within to demonstrate your commitment to their professional growth. 

Veritone ’s proprietary AI operating system, aiWARE, enables developers across media, legal and government sectors to organize, manage, search, and analyze metadata and content. The platform supports a variety of AI models, including language identification, content classification, transcription and license plate recognition to transform audio, video and text into actionable intelligence. 

What makes Veritone’s culture great: As a remote-first company, Veritone allows employees to work where they want. This gives team members the opportunity to work wherever they are most productive and the flexibility to find the work-life balance that’s best for them. To build and develop community among its remote workforce, it’s developed a number of “VERI communities” that help folks connect over shared interests. Employees can join groups like VERI Cooks, VERI Fit or VERI Equal.

How you can apply Veritone’s ideas: If you have a remote workforce, provide opportunities for your team members to connect through shared interests outside of their work life. This helps show your employees that you aren’t only interested in their day-to-day output, but also want them to feel comfortable bringing their whole self to work each day.

Jackpocket develops and markets a mobile app that allows users to order and play official lottery games online. Through the app, users can pick their numbers, view their tickets and receive winnings up to $600 directly in their Jackpocket accounts, while larger winnings are securely delivered to players by trusted lottery retailers. The app supports popular lottery games like Powerball, Mega Millions and New York Lotto, providing a secure digital platform for lottery enthusiasts.

What makes Jackpocket’s’s culture great: Jackpocket aims to forge a “culture around continuous education” through lunch and learn events, company retreats and providing employees access to job-related conferences and seminars. In this way, the company works to upskill its existing workforce and promote from within. As VP of Product, Jeff Glazer told Built In: “I was always given a chance to succeed in a new role…Whether enrolling in a training course or having one-on-ones to help my development, I knew the company was invested in my success.” 

How you can apply Jackpocket’s ideas: Invest in the employees you have. Develop clear career paths across your organization. Provide them with avenues for learning and development that will help them grow into your company’s future leaders. Institutional knowledge is an invaluable asset for any organization and employees with long tenure across a variety of roles can help you keep new employees motivated while also demonstrating how much you value your long-standing team members.

Green Thumb

Green Thumb is a national cannabis retailer and packaged goods company with a strong focus on social impact. Headquartered in Chicago with operations across 14 markets, the company operates several dispensaries and offers a variety of consumer products through its portfolio of brands, including Good Green, Dogwalkers and Doctor Solomon’s. 

Founded in 2014 with a mission to “promote well-being through the power of cannabis,” the company is committed to fostering a positive culture within the company while also promoting positive changes in the community. 

What makes Green Thumb’s culture great: As a social-impact-focused cannabis company, Green Thumb partners with nonprofits. Good Green is the company’s cannabis brand with a strong social impact arm that aims to serve Black and Brown communities across education, employment and expungement. In this way, the company aims to support folks who have been disproportionately affected by the “War on Drugs.”

How you can apply Green Thumb’s ideas: Put your money where your mouth is and find ways to demonstrate your organizations’ values in your local community. You might choose to do that through cash donations, a resource drive or by giving your employees time off to volunteer for a nonprofit organization of their choice. 

ActBlue is a nonprofit tech organization that assists democratic candidates, progressive organizations and nonprofits in building grassroots campaigns. Its fundraising platform provides customizable contribution forms and features like ActBlue Express Lane, allowing donors to contribute with a single click. Additionally, ActBlue supports joint contribution forms, enabling donors to give to multiple organizations simultaneously.

“We believe in the power of people. It’s in our mission and it drives our culture. It takes all types of people to make ActBlue go,” the company told Built In.

What makes ActBlue’s culture great: ActBlue says it pursues diverse perspectives and ideas, working to ensure a wide range of lived experiences, communication styles and problem-solving approaches on its team. The company aims to foster a supportive work environment, recognizing that a fun, relaxed and collaborative atmosphere positively impacts its ability to uphold its values. As a remote-first organization, it accommodates various schedules to suit the working hours of all team members.

How you can apply ActBlue’s ideas: If you can offer your employees a flexible work schedule or a casual work environment, that can go a long way toward helping your employees feel at-home even when they are at work. When your team can relax into their work day they can focus on being more productive, creative and collaborative.

OTR Solutions

OTR Solutions provides services and digital tools to ensure reliable cash flow and optimized back-office operations for businesses in the transportation industry. Its cloud-native platform discovers freight factoring solutions and offers support to help trucking businesses maximize success. With offerings like a capital fuel card and an accounts receivable team, OTR Solutions aims to grant flexibility and accelerate growth for companies. Ryan Goodrich, the OTR Director of Application Development told Built In “Everyone here has the same objective: to make the company a better place.” What makes OTR’s culture great: The company offers several initiatives that support not only its employees, but also its industry partners, clients and community. It hosts three internal impact groups : Diversity in Logistics, Women in Logistics and OTR Cares. Even though each group has a different mission, each one works to make the company and the community the best it can be. 

How you can apply OTR’s ideas: Create groups where employees from marginalized communities can feel like they belong. These impact groups can broadly apply to populations or be focused on more niche initiatives. Either way, they help your employees feel heard in the workplace. Giving your employees the opportunity to affect the industry and community through their day-to-day work can help give them a clear sense of purpose. 

Snap! Mobile

Snap! Mobile manages a portfolio of products aimed at simplifying fundraising and communications for sports teams, athletic directors and youth groups. Its flagship platform, Snap! Raise allows organizations to expand their digital reach beyond door-to-door fundraising. The platform allows coaches, group leaders and students to focus more on their activities while using Snap! Mobile’s tools to track participation and access financial reporting tools.

As a company that supports education-based fundraising, Snap! Mobile also works to make sure that continuous learning is a cornerstone of its employees’ experience.  

What makes Snap! Mobile’s culture great: Snap! Mobile operates as a remote work-based company that also offers unlimited PTO and quarterly virtual wellness classes to help team members keep a healthy work-life balance. While much of the workforce is fully distributed, the company also works to bring everyone together through frequent clinics, workshops and summits to allow the entire organization to collaborate and learn together.

How you can apply Snap! Mobile’s ideas: Having a fully remote team doesn’t mean you can’t find opportunities to connect as a group. While many organizations embrace company-sponsored events like happy hours and outings, look for ways you can upskill your entire workforce through professional development programs and continuous learning opportunities.

More on Company Culture Companies With the Best Culture

Core Digital Media

Core Digital Media uses predictive modeling to target online impressions for its mortgage, home and auto brands, optimizing comparison-shopping paths and expected value for clients. Specializing in marketing and consumer acquisition, the company operates sites such as LowerMyBills.com and QuickenLoans.com . Its platform collaborates with over 1,000 partners in the financial and education sectors.

“Our people are at the center of everything we do,” the company told Built In, and it aims to demonstrate that by offering in-office perks, health and wellness benefits, as well as incentives like performance bonuses and an employee award program. What makes Core Digital’s culture great: CDM’s people-first approach, rooted in its six core values , emphasizes health, wellness and abundant growth opportunities. Employees benefit from dedicated R&R days to support their mental health and engage in professional development through formal soft skills training and challenging projects. This mindset also extends to the community, with CDM teams actively participating in volunteer activities.

How you can apply Core Digital’s ideas : Remember that your employees are entire people with stressors, passions and goals. The more you can help them manage their stress and dedicate time to what fuels them outside of the office, the more energized they will be while at work. Incentivize that energy through quarterly or annual performance bonuses to reward initiative, growth and productivity.  

Golden Hippo

Golden Hippo specializes in developing and marketing direct-to-consumer brands in the health, beauty and pet care sectors. The company creates products with input from experts, managing everything from product development to customer service in-house. Its comprehensive services include branding, copywriting , video production, IT and web development, digital marketing and customer service.

The company says it’s committed to “fostering an environment that thrives on inclusivity, diversity and acceptance.” It does this through recruiting across demographics like gender, age and ethnicity and fostering a culture of belonging.  What makes Golden Hippo’s culture great: The company is known for offering a number of employee benefits including tuition reimbursement and parental leave alongside a wide range of on-site perks like a gym, free meals and a pet-friendly office space. Not only that, but it also encourages team members to volunteer in their local communities and has donated over $6 million dollars across a number of charitable organizations.

How you can apply Golden Hippo’s ideas: To have a great company culture, employees not only need to feel that they’re cared for through a generous and competitive benefits package, but they also need to get a sense that their company contributes to the well-being of their community. Start a volunteer program that allows employees to take time off to work with a charity of their choice, or take suggestions from employees about where the company can donate a share of its profits. This will help give employees a sense of ownership over the ways your company contributes to the community. 

Dynatrace ’s application performance management systems offer advanced observability tools and AI-driven automations for businesses operating in multi-cloud environments. By harnessing emerging AI technology, Dynatrace's platform assists in incident triage, remediation workflows and continuous optimization, to help clients across education, retail and financial services ensure seamless app performance. With a focus on scalability and efficiency, Dynatrace empowers companies to adapt to the digital landscape by automating processes, analyzing data and delivering intuitive solutions that meet customer needs.

The company’s Culture Decoder acts as the organization’s guiding compass, demonstrating its core values and big-picture goals internally, but also to its customer base. 

What makes Dynatrace’s culture great: Dynatrace’s core values are to innovate with passion, engage with purpose and win with integrity. To live up to these values, the company encourages its team to find a healthy and sustainable work-life balance through wellness days, flexible work arrangements, unplugged time off and a “No to 50 hours/week” policy. When employees are at work, the company embraces a culture of continuous learning through regular retrospectives after sprints and projects as well as clear career pathing so team members can find their own way — whether as an individual contributor or a people leader.  How you can apply Dynatrace’s ideas: Don’t just pay lip service to work-life balance or embracing a growth mindset for your employees — put it in writing and hold yourself accountable. Dynatrace’s Culture Decoder does just that by tying its company culture and values directly to its product outcomes in this external-facing format for prospective employees and customers alike.

User research platform dscout offers video research software designed to gather, manage and share in-context moments sourced globally. With the help of freelance "scouts," individuals provide insights through short videos on various topics, enabling businesses like REI, Nike and Lyft to enhance their customer outreach strategies. With an interactive platform facilitating real-time feedback, dscout empowers companies to collect qualitative data directly from customers and users to improve product development and brand engagement efforts.

The company says its annual engagement survey consistently demonstrates that what employees love about working at dscout is “the team and the culture.” The company aims to be intentional about maintaining its positive culture by remaining committed to its core values. 

What makes dscout’s culture great: dscout has a “Work From Almost Anywhere,” policy that allows employees to work from home or out of the dscout’s Chicago office. Despite its distributed workforce, the company embraces the power of gathering together by hosting an annual Midpoint event that brings all employees to Chicago for a week-long series of strategy sessions and fun team events.  How you can apply dscout’s ideas: If you have a lot of remote employees, find time to bring everyone together in one room once or twice a year. In the meantime, host casual virtual events that allow team members to get to know one another as people, and not just as employees. For example, dscout also hosts a ritual Tuesday Tea event, in which someone from the team volunteers to share about one of their hobbies or interests.

Publica by IAS

Publica operates a connected TV adtech platform for managing and deploying advertising content, assisting clients in predicting ad timing and optimizing ad frequency. The company serves clients like Samsung, Fox and MLB, facilitating the management of over 3 billion connected TV ads monthly. Publica's platform includes features for ad pod automation, audience targeting and campaign management.

The company is committed to its diversity and inclusion efforts, employing dedicated diversity and inclusion staff and boasting a highly diverse management team alongside a documented equal pay policy. 

What makes Publica’s culture great: In addition to its diversity and inclusion efforts, Publica also offers a number of wellness benefits beyond the standard health insurance package, including pet insurance, a fitness stipend and mental health benefits. The company also sponsors company outings like happy hours that allow employees to get to know one another outside of the workplace.

How you can apply Publica’s ideas: It doesn’t have to be a happy hour to be fun! Find opportunities — and room in your budget — to host social events for your employees and their families. These are great ways to help your employees get to know one another and also demonstrate that you’re invested in their overall wellness and not just their work productivity. 

Lob ’s SaaS platform integrates automation solutions into direct mail marketing campaigns. Thousands of companies across industries like financial services, healthcare and retail use Lob’s technology to access campaign analytics, minimize their environmental impact and scale their efforts through a nationwide print delivery network. 

With a culture “built around supporting personal growth and professional growth,” Lob actively seeks out opportunities to encourage team engagement, while also embracing a flexible work style.

What makes Lob’s culture great: Lob is a fully remote employer that provides team members with various benefits, ranging from a health and wellness stipend to a flexible PTO policy. It seeks to foster meaningful employee connections with fun gatherings like trivia events and localized Slack channels that help employees make contact with coworkers in their area. Through its team building efforts and benefits package, Lob aims to offer comprehensive support that reinforces healthy work-life balance.

How you can apply Lob’s ideas: Implement initiatives that show your workforce you value their overall wellness and personal development just as much as their professional development. Whether it’s by offering flexible hours, resources to support remote work arrangements, mental health coverage or family planning support, helping employees make their well-being a priority can contribute to a positive work culture.

Adswerve, Inc.

Adswerve is an adtech company that leverages expertise in data, media and tech to provide consulting services that help clients build strong customer relationships. Its services cover using first-party data to tailor the customer experience, training that helps teams get the most out of their tech, analytics for predicting future trends and other aspects of digital marketing strategy.

The company characterizes its work environment as a place where people who are “open-minded, love collaborating and enjoy coming up with creative approaches to challenges” can thrive.

What makes Adswerve’s culture great: Adswerve is a virtual-first team with employees spread across 26 states and six countries. Having a widely dispersed workforce can make it difficult to build relationships among colleagues, but Adswerve uses digital strategies like webinars, monthly all-hands meetings and Slack channels to create opportunities for people in different time zones and locations to connect with one another so they can share diverse ideas and perspectives. This effort to create a collaborative and inclusive culture falls in line with the company’s brand pillars, which make it a priority to “encourage diversity of thought and welcome everyone to speak up and share their unique perspectives.”

How you can apply Adswerve’s ideas: Look for opportunities to amplify employee voices. Don’t rely on a single channel to serve as a chance for team members to offer up their insights. Rather, try to establish multiple settings that can create space for employees to speak up based on their individual comfort levels, especially if you’re working with a largely remote team. This can include large group meetings, small group or even one-on-one dialogues or anonymous surveys.

Convention Data Services

Convention Data Services provides event registration, data management and lead retrieval services for trade shows, conferences and other events. The company works to streamline event operations, enhance attendee experiences and facilitate networking and business opportunities for event organizers, exhibitors and attendees alike.

The informal mantra embraced by the company is “our team members are our most valuable resource,” and this ethos permeates its organizational culture. With a remarkable 98 percent retention rate, the company has earned widespread recognition as the premier employer within the events industry.

The company boasts 12 weeks of paid parental leave, encourages employees to take time off to volunteer in their local communities and lets employees decide if they want to work in-person, hybrid or fully remote based on their needs. CDS also told Built In that they have a flexible PTO policy “so employees can live their best lives.” 

What makes Convention Data Services’ culture great: “CDS provides a good space for individualism by allowing you to put your own stamp on the company, while receiving a high level of support,” an employee shared with Built In . The company puts its employees first, which is what helps CDS maintain such a staggeringly high retention rate. The company is also well known for promoting from within and investing in employees’ continuing education. 

How you can apply Convention Data Services’ ideas: Give your employees space to take the time they need to recharge and spend time with their loved ones. Let them have a say in how they work best — whether that’s working 100 percent in-person, on a hybrid schedule or remotely. Develop learning programs for your employees that allow them to upskill and bring their new skills back to the company. Institutional knowledge is a company’s greatest asset so invest in the employees you already have.

Zoom Video Communications

Zoom is a platform for video and audio conferencing, collaboration, chat and webinars.

“The happiness crew maintains the company culture at each location through events, celebrations, community involvement and volunteering,” Steve Snyder, account executive at Zoom, told Built In .

That’s right, the company created a happiness crew focused on maintaining a close-knit culture as the company grows. Different teams come together to volunteer for local organizations like the Special Olympics, Denver Food for Thought and Habitat for Humanity.

New hires from across the globe attend a training session in San Jose to build relationships and learn about the company and its culture before their first day. Once they start, new hires are paired with a mentor to learn more about company culture and company outreach. During Zoom’s company-wide office meeting, employees recognize a colleague who supported them and share updates to keep everyone in the loop and show appreciation for individual successes.

What makes Zoom’s company culture great: Zoom makes a conscious and continuous effort to grow and evolve culture with the company. During interviews, when candidates are asked “who motivates you,” their response is often a loved one, so the company hosts events for people to bring their child or parent to work for colleagues to meet the people who inspire their teammates.

How you can apply Zoom’s ideas: Create a culture committee. As a company grows, culture often becomes a back burner issue. Rather than allowing culture to run unattended, create a team that meets regularly, establishes culture programs and re-evaluates culture as teams grow and change.

ServiceNow is a cloud-based platform that automates workflows, manages projects and simplifies collaboration for companies. As a small company, ServiceNow recognizes how much of an impact each new addition has on its corporate culture, and encourages everyone to give input and lead new culture, diversity and inclusion initiatives . 

“Growing our local culture is a constant evolution and discussion item, but we’ve already developed some traditions,” Ryan Wells, senior technical program manager at ServiceNow, told Built In .

The company sponsors team outings like karaoke, bowling and baseball games to welcome new hires into the fold. Inclusivity is a major part of ServiceNow’s culture, so when one employee brought lunch from home while others ate out, they came together and brought lunch back to the office so that everyone could eat together. 

What makes ServiceNow’s work culture great: One employee describes it as a ‘culture of camaraderie.’ Customers are embraced as part of their culture; they even bake a cake each time a new customer goes live. When it comes to company culture, little acts can have a big impact.

How you can apply ServiceNow’s ideas: Create a culture and work-life balance with a focus on individual interests. If people are comfortable sharing their quirks, others are likely to do the same. Especially for small companies where everyone has a significant impact on the culture, it’s crucial to make sure everyone feels included and represented.

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Thousands of businesses throughout the restaurant industry have incorporated Toast ’s software and hardware solutions into their operations. Its technology enables online ordering, tableside service, payroll and schedule management, inventory optimization, email marketing and other elements of running a food and drink business.

With many of its employees coming out of the restaurant industry, the company has outlined a clear goal to “empower the restaurant community to delight their guests, do what they love and thrive.”

What makes Toast’s culture great: Toast aims to connect its employees both to the company’s overall mission and to one another with initiatives like volunteer opportunities, as well as both in-person and virtual gatherings . Its efforts to establish an equitable and supportive work community have also included the creation of the company’s Council of Advocates for Equity along with several employee resource groups, such as Challah for Jewish employees, Drye for sober employees and Multigrain for LGBTQIA+ employees and their allies.

How you can apply Toast’s ideas: When you’ve got a large international team like Toast, establish lots of programming geared toward building community, with options that are accessible to team members regardless of where or how they work. That might look like virtual meetups, regular keynote presentations or chances to get involved in company committees.

CB Insights

CB Insights uses machine learning for data analysis to help companies understand industry trends and make informed decisions based on factual evidence. For a company that analyzes trends, it’s important that their employees are up-to-date with evolving technology.

“CB Insights focuses on employee growth and learning,” Alyssa Anchelowitz, senior marketing manager at CB Insights, told Built In . “They’ve expanded the training programs for managers and offered an education stipend that allowed me to learn more about Javascript my first year here.”

Managers regularly talk with employees about their paths and where they would like to grow personally and professionally . They also encourage people to take on new challenges, even hosting a quarterly Hack Day where employees work on anything they want for the company for 24 hours.

What makes CB Insights’ company culture great: The company hires people who are hungry for knowledge, and it continuously feeds that hunger with stipends and opportunities to learn.

How you can apply CB Insights’ ideas: Create a type of culture that prioritizes individual development. Both professional and personal development are major factors contributing to an individual’s success. Support your employees’ passions and this in turn will boost employee engagement and they will be more motivated at work and life in general.

Workiva ’s cloud platform helps companies manage data across departments and offers controlled collaboration, performance reporting, financial reporting and more. Building and maintaining such complex technology requires coherent leadership and open communication across teams and roles. 

“Nurturing a high-performance, fast-paced, innovative culture where everyone's ideas are encouraged and collaboratively debated takes considerable patience, openness and vulnerability,” Michael Bevilacqua, VP of product development at Workiva told Built In . “I’ve found the best way to achieve this is by modeling the behavior.”

Debate is a major part of Workiva’s culture and is highly encouraged and supported across departments. In order to yield the results required to keep up with the company’s high-demand product, it’s crucial for team members to be open and honest and solve issues efficiently.

What makes Workiva’s company culture great: Workiva’s leadership team fosters an environment of giving and receiving employee feedback . Leaders are willing to admit mistakes, recognize individual talents, support opinions and disagreements and exude patience, all while considering the team’s overall health and well-being .

How you can apply Workiva’s ideas: Create a culture of leadership by example. Leaders greatly influence culture, so promote people whose leadership style matches that of the company’s core values , mission and culture. People will be much more comfortable sharing ideas and be open to feedback if the people setting an example do the same.

The Predictive Index

The Predictive Index ’s suite of products work to help companies make better hires, increase employee engagement and build high-performing teams. The HR tech company also offers workshops and opportunities to work with PI consultants to collaborate directly with leaders who are developing their teams. 

The company motto, “Better Work, Better World,” reflects not only its business, but also its company culture.

What makes The Predictive Index’s company culture great: At PI, leaders work to recognize and accommodate different behavior and work styles through daily communication, work assignments and by offering flexible work arrangements . PI also has a number of ERGs for underrepresented groups, like Queer@PI for its LGBTQ+ employees, while supporting employee-led initiatives like Change@Work .

How you can apply The Predictive Index’s ideas: Celebrate your differences and know that they are fundamental to your company’s success. Don’t be afraid to acknowledge the existence of implicit biases and work to mitigate them. Finally, listen to your employees. If they are telling you they don’t feel like they belong or can’t be themselves at work, believe them. Create space for them to share their feelings with folks who understand, whether that’s through a forum, an ERG or a one-on-one mentorship program .

Thumbtack serves both homeowners and local service businesses. Consumers use Thumbtack ’s online platform to find skilled, experienced and well-rated professionals to take care of projects around the home. The company also has a suite of tools for small businesses, giving them the capabilities to build a reputable digital presence and land jobs.

Thumbtack works to “empower homeowners to take control and local businesses to grow.” Its culture is designed to nurture employees’ growth so they can contribute to that mission and build a fulfilling career.

What makes Thumbtack’s culture great: Thumbtack has more than 1,000 employees operating under its virtual-first work model, which allows them to perform their job duties from any location of their choosing in the United States, Ontario, British Columbia or the Philippines. Because it gives team members flexibility in terms of location and schedule, Thumbtack characterizes this work style as being “more equitable and effective.” Thumbtack applies multiple proactive strategies to support its distributed workforce. Those tactics include offering a remote work stipend, establishing collaboration hours, maintaining physical workspaces known as libraries in San Francisco and Salt Lake City and using local community Slack channels to facilitate in-person meetups.

How you can apply Thumbtack’s ideas: Thumbtack emphasizes that its work structure is a “virtual-first, not virtual-only model,” and that distinction is something other companies can replicate within their own business framework. Whether your workforce is entirely remote or you offer a remote arrangement as one of multiple work options, keep in mind ways that you can enhance collaboration among team members based in different time zones and make time for employees throughout the organization to get to know one another both virtually and in real-life meetups.

Clari specializes in software for unifying and optimizing revenue processes. B2B companies use Clari’s platform to give teams like marketing and finance the tools to enable accurate forecasting, data visibility, coaching and strategy management. The technology is powered by artificial intelligence, which enables automations that help users save time on manual tasks.

With a team that serves thousands of users across approximately 170 countries, the company emphasizes “building a remarkable culture is a top priority.”

What makes Clari’s culture great: Clari has established a set of values that includes explicit commitments to supporting employees, celebrating unique identities, embracing collaboration and extending trust. One of the ways the company works to fulfill those commitments is by offering benefits and initiatives that show their employees they care about proactively meeting their personal and professional needs. Those efforts range from creating employee resource groups and recognition programs to providing stipends for wellness and professional development.

How can you apply Clari’s ideas: Assess the support your organization offers team members — such as leave options and wellness programming — to determine if it’s inclusive, comprehensive and aligns with the organization’s values. Whether it’s by conducting research or collecting feedback from team members, look at whether there are additional measures your business can implement to ensure employees feel seen, heard and valued.

Tala  is a fintech company that provides financial services to underserved people around the world. Tala has built a team that is passionate about the mission and as diverse as the customers they serve.

“We have team members from all walks of life, which brings in a diversity of opinions and experiences to meaningfully drive our innovation,” Gaurav Bhargava, vice president of credit at Tala, told Built In .

The financial experts at Tala come from a range of backgrounds and experiences, which fuels creativity and growth. The company’s credit team alone represents multiple nationals and speaks several languages. Tala also provides employees with opportunities to learn new business functions outside of specific roles to explore interests and gain a holistic understanding of the company.

What makes Tala’s corporate culture great: Equity and diversity are key to innovation. Tala’s customers are their passion, and to serve them best, the company built a team that encourages creative thinking and represents its customer base.

How you can apply Tala’s ideas: Create a culture that reflects your customers and mission. The best way to serve your customers is with a team of people who are relatable, knowledgeable and passionate about their service. It will also foster an environment of people who can challenge and support each other, boosting efficiency and product quality.

Paxos is the first regulated blockchain company building products to help companies move assets faster and cheaper than ever before. The company has prioritized creating an inclusive environment for new hires starting on day one by asking them to bring in ‘rookie cookies’ to encourage team members to drop by and introduce themselves.

“We also set up new hires with team buddies, coordinate lunch with their managers and fill their desks with plenty of Paxos swag,” Helen Galarza, office manager and people operations specialist at Paxos, told Built In . “Onboarding will never stop evolving.”

Beyond the first day, Paxos encourages employee engagement by volunteering in the community and celebrating milestones like birthdays and work anniversaries. The company also hosts events like a Guacamole-Off as a competitive and delicious way to bring teams together.

What makes Paxos’ corporate culture great: On an employee’s first day, and every day after, Paxos prides itself on bringing people together with sweet treats and regular celebrations to ensure everyone feels included.

How you can apply Paxos’ ideas: Create a culture of inclusivity. Determine the best ways to bring people together, because teams that bond work better together and are inherently more comfortable giving and receiving feedback and brainstorming ideas. As you can see from Paxos’ approach, something as simple as cookies can get the ball rolling.

The Nerdery

The Nerdery is a digital consultancy that helps mid- to large-size clients in the healthcare, retail and manufacturing industries. That’s a broad customer base, and to get the job done, the company built a team of people with a wide variety of backgrounds and experiences. Creating one culture that’s authentic to so many unique people may sound impossible, but it’s actually just the opposite.

“Trying to create a culture from the top down never feels quite right,” Jim Butts, principal software engineer and team manager at Nerdery, told Built In . “So my focus has been in supporting activities Nerds are passionate about and encouraging everyone to share their interests — however obscure.”

The company fosters work life balance by encouraging individuals to explore their passions. When an employee is promoted, the team celebrates by filming a creative video centered around their interests and quirky personalities. 

What makes Nerdery’s work culture great: It’s centered on trust. Their team of Nerds are comfortable and proud to share their unique professional and personal passions. Nerdery is one of the growing list of companies that’s ditching the idea of “culture fit” and moving to “culture add.”

How you can apply Nerdery’s ideas: Create a culture based on authenticity and trust. Aside from embracing the individual factors that make every employee unique, this approach creates a more inclusive environment where people can be frank with employee feedback and recommendations.

Edmunds is an online car-buying marketplace that empowers consumers to find the best vehicle for their needs. The company began as a car catalog in the 1960s then became an early adopter of technology for car buying in the mid-1990s. 

Edmunds works to empower their employees with TRUST, the acronym that represents their company values: transparency, resourcefulness, urgency, simplicity and togetherness. The company exhibits these values through all-company celebrations, bi-weekly company meetings and professional development sessions. 

What makes Edmunds’ company culture great : The company makes time for monthly Take the Wheel events, which are opportunities for different departments to host a day of learning for the entire organization. These events not only make time for clear, transparent communication across the board but they also allow employees to understand how their individual contributions further the organization's goals.  How you can apply Edmunds’ ideas : Carve out space for your employees to learn as a team and have regular opportunities for transparent communication from team leadership. These events will not only help your team bond across departments, but also help them understand how their day-to-day work contributes to the overall vision of the organization.

Imprivata is a security platform for technology vendors and clients that provides customers with security, control and accountability. This high-tech company isn’t afraid to step outside the traditional tech candidate pool when growing its team. 

“Focusing on the individual and their abilities rather than their past experience gives us a tremendous advantage,” Jacob Venard, director of customer success at Imprivata, told Built In .

Instead of focusing solely on education and experience, Imprivata looks for nontraditional candidates, hiring people with backgrounds in teaching, firefighting and philosophy. Joel Burleson-Davis, Vice President of Technology, studied philosophy, ethics, ancient languages, history and Greek in college, then went on to study systems science in graduate school before joining the team. The company hires people who are passionate about learning because they’re more likely to stay motivated, enjoy their work and tackle challenges with a unique perspective.

What makes Imprivata’s company culture great: Personality and motivation trump education and experience.

How you can apply Imprivata’s ideas: Create a culture with a thirst to learn. Ever had a candidate your team clicked well with, but they didn’t quite have the background of other interviewees? It might be worthwhile to take a chance and hire people who are passionate about learning because you can always teach technical skills to people who are driven to grow and conquer challenges.

FloQast provides cloud-based software that helps accounting departments streamline and improve workflows.

“Overall, I think it’s really important for management to be open about what’s going well and what’s going poorly with the business,” Mike Whitmire, FloQast co-Founder and CEO, told Built In . “I like discussing the good, but honestly, I see more value from discussing the bad.”

Having open communication across teams and experience levels has built a healthy culture where everyone is comfortable asking tough questions and making a team effort to overcome adversity. Not only that, but employees are more comfortable being upfront about their concerns and needs within their team and in their individual career paths.

What makes FloQast’s company culture great: Transparency is key to FloQast’s culture and is embodied by everyone from the CEO to the latest hire. One employee noted how surprised she was at how transparent the CEO and COO were during the interview process.

How you can apply FloQast’s ideas: Create a culture around transparency. Always be intentional about having open conversations about information regarding the company and the internal and external factors that affect its health. If leaders are transparent with their direct reports, open communication will flow through the organization.

Bluecore is a retail marketing platform that uses AI technology to help companies boost campaign performance. For Bluecore, customer success is deeply rooted in its corporate culture — in fact, it’s one of the company’s core values.

“Culture is driven by a unique set of values and personality centered on clear goals that define success. Our team is clear on its goals and we are incentivized through compensation structure and recognition. With that foundation, we can apply our personality and values to define how we will accomplish those goals,” Kim Surko, vice president of customer success at Bluecore, told Built In .

Bluecore starts career pathing during the recruitment process and continues throughout the employee’s time at the company. Senior leaders offer career coaching and guidance to help team members explore their passions and find roles within the company that allow them to utilize their unique skills — even if that means creating a new role.

What makes Bluecore’s corporate culture great: At Bluecore, customer and employee success and satisfaction are the top two priorities. The two go hand-in-hand, and as they build each other up, they create an external and internal army of brand ambassadors.

How you can apply Bluecore’s ideas: Create a positive company culture driven by customer success. If the customer’s happy, everyone’s happy. A team that works together with a collective goal to improve customer experience will create an internal organizational culture of collaboration and mutual success.

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GTreasury is a SaaS and risk management platform that helps digital treasurers across the world make informed decisions. As a fast-growing and evolving team, GTreasury has had to integrate international teams and products.

“To accomplish these goals, teams are working hard to over-communicate and get constant feedback,” Ashley Pater, GTreasury’s SVP of product told Built In . “This includes conference calls at odd hours to accommodate time zones and weekly meetings.”

For an international company, over-communication is key to ensuring everyone is well-informed and ideas are being heard. To bring teams even closer together, GTreasury hosts a variety of team bonding events, including a charity chili cook-off, a Halloween hackathon and celebrations for birthdays, weddings, new family members and holidays.

What makes GTreasury’s corporate culture great: The company errs on the side of oversharing so that everyone is on the same page, ensuring time and resources aren’t lost due to miscommunication.

How you can apply GTreasury’s ideas: Create a culture that fosters cross-team collaboration, employee engagement and accountability. By building a company culture where teams rely on one another for collaboration and everyone's successes and failures are interlinked, teams will have higher incentive to work together and be held responsible.

Spotnana offers a Travel-as-a-Service platform to personalize travel booking and power quality travel experiences. The company provides a single cloud-based platform accessible to corporations, travel management agencies, suppliers and technology providers so companies don’t need an entire tech stack for their business travel needs.

The company’s core value, Respect Above All, reflects Spotnana’s respect for its diverse, global workforce.  

What makes Spotnana’s company culture great : Since its founding in 2020, Spotnana has been a global company. In 2022, the company hosted its first global gathering in Jaipur, India. The event brought together 200 Spotters from 29 countries, not to mention employees from 14 different cities around India. The event, aptly named Converge, was an opportunity to foster collaboration and build community.  How you can apply Spotnana’s ideas : If you have a hybrid or fully distributed workforce, prioritize annual or semi-annual gatherings for the entire team. These types of events allow employees to connect with their colleagues in a meaningful way and help them feel a part of a larger community.

Hireology is a software platform that helps companies manage the employee lifecycle. With a mix of local and remote employees, it can be challenging to create an inclusive and progressive corporate culture.

“When you have a blended team, your local staff can help bridge gaps and build empathy,” Joel Schlundt, vice president of engineering at Hireology, told Built In .

A remote work environment opens up opportunities for both companies and candidates, but can push the limitations of virtual communication. To ensure seamless correspondence, Hireology has built a system to equip its team with everything it needs, including video conferencing in every meeting space and training for remote workers to prevent technical glitches. The company also brings remote and local teams together twice a year so that people can get real face time — instead of just FaceTime.

What makes Hireology’s team culture great: Empathy and communication are key to building relationships between remote and local workers. Hireology implemented empathy exercises, where employees swapped jobs for a few hours to help them understand the challenges of other roles.

How you can apply Hireology’s ideas: Create a healthy culture that includes everyone from everywhere. Regardless of where your employees are physically located, it’s crucial that they feel a part of the team. Invest in quality technology and create a daily routine that incorporates remote and local employees so that they are able to build relationships and contribute to culture.

Enigma ’s technology is designed to provide its clients with comprehensive, actionable insights on the identity, behavior and financial health of small and medium businesses. Companies and financial institutions use Enigma’s intelligence solutions for targeted customer acquisition, risk assessments, credit pre-approvals and other applications.

Enigma has explicitly committed to cultivating “a positive, supportive and fulfilling work environment” that connects team members through shared values and goals.

What makes Enigma’s culture great: The company’s culture underscores the importance of regularly seeking out resources and strategies to directly fulfill the professional and personal needs of its workforce. For example, Enigma responded to employee feedback expressing a desire for more health and wellness reimbursements by establishing a $100 monthly wellness stipend that team members use to cover things like massages, workout gear and even healthy food options. Enigma also has a productivity tool budget that exists to ensure employees have what they need to work comfortably, such as ergonomic chairs and noise-canceling headphones.

How you can apply Enigma’s ideas: Proactively seek out feedback and ideas from your employees on ways to improve physical work spaces, team culture and benefits. Whether it’s by offering additional perks or simply creating more opportunities for team members to connect virtually and in person, work toward implementing solutions that let employees know their voices are valued and their concerns are being heard.

Updater eases the pains associated with moving by transferring utility and digital services, reserving moving companies, updating accounts and forwarding mail. Rather than having multiple phone and in-person interviews, Updater has full-day interviews.

“Unlike a typical interview, the full day is an enjoyable experience that shows what it is truly like to be a part of Updater,” Zebin Sakeeb, services engineer at Updater, told Built In .

Condensing the entire interview process into one day saves time and resources and can reduce stress. It also gives the candidate a unique opportunity to engage with the people they will be working with in their daily work environment. Typical interviews are often one-sided, but Updater’s tactic allows candidates to determine if the role and culture are a good fit for them. Employees recall the experience being more enjoyable and less stressful than traditional interviews they’ve experienced.

What makes Updater’s company culture great: Updater immerses candidates in its culture before making a hire. The company creates an equal opportunity for the team and candidate to assess the role, personality and skill set fit, ensuring everyone is on the same page from day one.

How you can apply Updater’s ideas: Create a culture where teams and candidates can make informed decisions. Interviewing is often one-sided, focusing solely on the needs of the company, but like any relationship, fit should be assessed by both parties. It can be difficult to measure culture fit through phone screens and brief meetings, but a full-day interview can provide everyone with adequate information to save time on making a final decision.

Agile Six works with federal agencies to design their digital services in a way that is modern, inclusive and user friendly. A large portion of its work has centered around collaborating with agencies that serve veterans, and the company’s capabilities include product development, research and Agile coaching.

Laying out its core values as purpose, wholeness, trust, self-management and inclusion, Agile Six seeks to establish a people-first workplace culture.

What makes Agile Six’s culture great: Agile Six’s employees are given lots of flexibility and autonomy, as the company not only operates fully remote, but also emphasizes a self-managed team structure. That means individual team members are trusted to make decisions about things like when they take time off, how to complete job tasks and the trajectory of their professional development. This element of the work culture instills in them a sense of responsibility for contributing to the organization’s overall success.

How you can apply Agile Six’s ideas: Take a look at how much personal control your employees have over how, where and when they work. Consider whether there might be room to allow them greater space and flexibility so that they feel empowered to embrace work-life balance, giving them the support they need to do good work while also making ample time for their personal well being.

Further Reading 42 Shocking Company Culture Statistics You Need to Know

Sphera , formerly riskmethods, a supply chain management software company, built a culture that celebrates its internationally diverse cultures.

“We are very lucky to have people from different countries and cultures all throughout the office,” Coleen Shaughnessy, a marketing specialist for Sphera  told Built In . “So, learning about different traditions and holidays in other countries is always fun and definitely makes us a little more unique in how we celebrate.”

To ensure teams in the U.S., Germany and Poland remain close across borders, Sphera offers an employee exchange program to allow employees to travel to other offices and meet their colleagues in-person. Even as the company grows, Sphera continues to have company-wide lunches on a new hire’s first day to make sure everyone feels welcome and included.

What makes Sphera’s company culture great: Sphera encourages its team members to learn about and celebrate their different international cultures.

How you can apply Sphera’s ideas: Create a company culture based on your teams’ personal cultures. If you have an international team, educate your people on cultural differences and form diversity initiatives. Doing so will improve employee performance and how teams communicate and collaborate — key components of success for remote teams.

Blackbaud , a provider of cloud-based software for the philanthropic industry, built its corporate culture around a shared passion for giving back.

“You can’t truly be successful at Blackbaud unless you are passionate about serving the nonprofit community,” Brandon Phipps, vice president of sales and market development at Blackbaud told Built In .

The company walks the walk by organizing team-wide service projects, providing time off to volunteer and offering a company match for employee charitable-giving. Employees are also encouraged to participate in the selection process of the company’s Blackbaud Community Grants program which awards grant money to local nonprofits in Austin, Texas. Of course, it isn’t all work, as the company also hosts social events themed to topics they love, like pinewood derbies, Harry Potter and an annual Star Wars movie marathon.

What makes Blackbaud’s company culture great: Blackbaud built a progressive corporate culture by hiring people passionate about nonprofits. Uniting around a common cause brings the team together and ensures everyone is working toward the same goal.

How you can apply Blackbaud’s ideas: Create a culture of passion. A business’s mission goes deeper than revenue. Emphasizing your corporate mission and hiring like minded people will reinforce the importance of what you do and foster a self-sustaining culture of success.

Ping Identity

Ping Identity is a security tech company that protects clients’ identity information. To best serve the company’s diverse range of clients, Ping Identity has built an internal team that reflects its clients and brings a variety of backgrounds and opinions to the table to help solve problems.

“We foster an environment that is supportive, inclusive and diverse. When hiring, we recruit extensively at different college events looking for new and diverse candidates, and we promote internal referrals from employees,” Kristen Komatz, Ping Identity’s senior director of product development, told Built In .

Even more important than diversity, Ping Identity builds an inclusive environment to ensure everyone feels comfortable and welcome no matter their background or experiences. Ping Identity also offers leadership classes and mentorship opportunities to ensure new hires are matched with colleagues who are interested in mentoring and have the training needed to build a successful mentor-mentee relationship.

What makes Ping Identity’s company culture great: Diversity, inclusion and mentorship are key components of Ping Identity’s, well, identity. The company embraces change and is always looking for ways to improve its culture and the individuals that make it.

How you can apply Ping Identity’s ideas: Create a culture that’s both diverse and inclusive. Make a conscious effort to both recruit talent from a variety of backgrounds (that means stepping away from your go-to recruitment platforms) and targeting diverse candidates on their turf. No matter where you are in your diversity efforts, building an inclusive culture will make everyone more comfortable, connected and engaged at work.

Evive integrates big data with predictive analytics to help people optimize their work benefits. Like most companies, Evive experiences growing pains, but what’s kept its type of culture in sync is a collective commitment to make an impact and improve people's lives.

“Work is such a large part of a person’s life, and the benefits and support platforms that go with that work can make all the difference in how someone goes from subsisting to flourishing,” Andres Gonzalez, UI designer at Evive, told Built In .

The company is passionate about making an impact on people’s daily lives, and so are its people. To reduce Evive’s ecological footprint, the company created a ‘going green’ initiative that continues to influence its work environment. Employees extend their impact beyond the office by volunteering at local organizations, including the Greater Chicago Food Depository.

What makes Evive’s team culture great: Creating a better world and impacting the lives of others are core values, and Evive’s people act on their passion to support those values. 

How you can apply Evive’s ideas: Create an organizational culture based on a cause. Support employees’ interests by providing opportunities to volunteer, start a passion project or implement programs that incorporate the whole team to meet a goal.

Read Next Company Culture Videos: Learn From 16 of the Best Examples Out There

Reonomy, an Altus Group Business

Reonomy is a search platform for commercial real estate that uncovers insights and new opportunities for users nationwide.

“We have a unique culture of ownership, enthusiasm and collaboration at Reonomy, and I’m thrilled to be a part of it,” Michael Manne, Reonomy chief revenue officer, told Built In . “Many companies talk about culture, but it’s definitely something you both see — and feel — when you visit our office.”

To champion its culture of collaboration and ownership, Reonomy shares both individual and team “shout-outs” during company meetings. The company also seeks out diverse talent who are passionate about the product, which helps everyone see the purpose and value in their work.

What makes Reonomy’s team culture great: Reonomy built a collaborative team of independent owners. All of the company’s team members are quick to brainstorm ideas and take ownership on tasks to make ideas happen.

How you can apply Reonomy’s ideas: Create a culture that supports both autonomy and collaboration. Building a successful culture is a balance of pushing people beyond their comfort zones and allowing them to succeed at what they do well. Provide your team with a mix of both so that your people are comfortable working together and are equally equipped to own their role.

Shipwell is a platform dedicated to automating the freight transport logistics industry by replacing the current manual and less transparent shipping processes. The platform helps companies find an optimal carrier with instant quoting and booking and real-time shipment tracking.

Instead of core values, Shipwell sets its culture around six behaviors because the company believes common behaviors and actions form a culture more so than values.

“Every employee gets taken through Shipwell’s culture deck and spends time with the founders to discuss the company’s vision with the founders. We take a lot of time to talk about our core behaviors and how we measure up to them,” Jason Traff, Shipwell president and co-founder, told Built In .

What makes Shipwell’s company culture great: Shipwell works hard to foster an open, transparent work environment full of workshopping and brainstorming. Traff has said his desk is the first one an employee sees after passing the office’s reception area. This reinforces transparency, aids employee retention and exemplifies accessibility, especially in a growing company where leadership can easily become closed off from the rest of the company. 

How you can apply Shipwell’s ideas: Though moving the co-founder’s desk to the most trafficked area in the office is a tremendous statement, don’t feel like that’s the only way to be accessible. Simply encouraging new employees to provide suggestions or ideas and having leaders meet with employees early on can set a precedent of accessibility right away.

Read More Company Culture Is the Key to Managing Change

Shopgate , an e-commerce mobile shopping app, built an international culture based on collaboration and mentorship.

“Shopgate has a wonderfully horizontal culture: Proposals and ideas from individual contributors are valued and celebrated,” Nicollette Mead, product manager at Shopgate, told Built In . “This culture of openness and flexibility allows employees to keep growing and gravitating to roles that fit their talents and passions.”

With half of the company’s team in Germany and the other half in Texas, maintaining strong communication and culture is a constant point of emphasis. To ensure the culture grows with the company, Shopgate looks for candidates who “radiate passion,” have a “hunger for learning,” and above everything, have a shared vision for the company’s product and goals.

What makes Shopgate’s corporate culture great: Shopgate prioritizes communication and collaboration by hiring people with a shared vision and investing in tools to support their international culture.

How you can apply Shopgate’s ideas: Create a type of culture grounded in collaboration. Teams that communicate well and work together are more productive and lead to increased employee satisfaction. Especially if you have remote team members, it’s crucial to make sure they are included in company culture.

Bento for Business

Bento for Business is an expense management software that helps small businesses control employee spending with smart employee debit cards.

“Though we move at a fast pace, and it might seem that we don’t have time to sit and explain things, every employee at Bento loves sharing, helping and lifting others,” John Turner, full-stack engineer at Bento, told Built In . Bento’s motto, “Be Human,” illustrates the company’s dedication to both professional and personal development.

To support team members in all aspects of their lives, several members of the company’s leadership team extend their mentorship beyond the workplace, helping employees be more human. This mentality of helping and supporting each other is transferred throughout the company from colleagues to customers and partners. When one employee was apprehensive about talking with the CEO, they began having regular meetings to build their confidence, discussing both personal and professional challenges and goals. 

What makes Bento’s company culture great: No matter their level, employees feel valued in all aspects of their lives, including both their professional and personal aspirations.

How you can apply Bento’s ideas: Create a positive company culture of leadership and mentoring. Make sure employees are comfortable collaborating with colleagues at all levels. Encourage one-on-one meetings between various roles and teams, this will help with employee performance as well as employee retention.

Comcast Advertising

Comcast Advertising makes technology for efficiently managing media buying and selling, audience targeting and ad campaign workflows. Its solutions serve brands and agencies, as well as other stakeholders across the TV advertising landscape, such as publishers and distributors.

Comcast Advertising is part of media and technology giant Comcast, which emphasizes values like “committing to a culture of fairness, respect and inclusion.”

What makes Comcast Advertising’s culture great: The company seeks to foster a connected workforce and ensure   all team members can take advantage of resources to help them grow professionally. The 2024 Impact Report from Comcast  shows, for example, it has multiple learning and development programs in place, including the EXCEL leadership development program and CoachDiversity, which provides executive coaching opportunities.

How you can apply Comcast Advertising’s ideas: Offer multiple ways for your employees to access education and career development. Options can include education stipends, tuition reimbursement programs, professional conference and networking opportunities or mentorship initiatives. Especially for companies with a large, diverse and dispersed workforce like Comcast, giving team members’ choices for learning and development can ensure support is available to suit a variety of different needs and life circumstances.

TurboTenant

TurboTenant ’s platform comes with tools landlords use to manage their rental properties. The technology offers a generative AI solution for producing descriptions to advertise available residences, for example, as well as automatic reminders to help tenants avoid missing rent payments. TurboTenant’s work culture centers around its Be Better Virtues system, which encourages continuous improvement.

What makes TurboTenat’s culture great: The company makes clear that its environment “is not designed to be comfortable,” and thus, won’t be a good fit for everyone. Working for TurboTenant isn’t meant to be easy, according to the company’s website, but it does provide employees with lots of room to grow as they tackle tough challenges. 

How can you apply TurboTenant’s ideas: Be transparent with prospective employees about your company’s expectations and the realities of the job. Emphasize the benefits and opportunities that will be available to them, but also take the time to lay out a clear picture of the demanding nature of the business and give them a set of principles they can rely on to direct their actions in the workplace.

Hi Marley makes an AI-powered conversational platform that equips property and casualty insurance providers with tools to help them improve policyholder interactions. It includes features for communicating across various channels, automating workflows and enabling real-time employee coaching. 

The culture at Hi Marley is largely shaped by the values its founders established that are intended to “define how we treat people and how we want to be treated.”

What makes HiMarley’s culture great: Hi Marley works to help employees build meaningful relationships with one another, their customers and the company’s overall purpose. Its values, which emphasize a culture that prioritizes humility and a willingness to try new things, offer guidance for Hi Marley team members at all levels, encouraging an organizational structure where people lead by example.

How can you apply Hi Marley’s ideas: Ensure leaders are involved in defining the company culture, as well as engaging with employees and customers so they can set an example for how to act and deliver quality customer service in alignment with the mission and values. This active leadership gives team members something to look up to and emulate.

InStride provides education solutions for the workforce. It aims to bolster DEI efforts, attract quality job candidates and improve employee engagement for client companies. The company’s adult learners can access educational programs that include associate degree tracks, technical certifications and courses to learn English.

What makes InStride’s culture great: InStride aims to create an environment based on diverse perspectives where everyone can thrive. Its SPIN+ community organizes events and initiatives to make their employees feel welcome and appreciated. It furthers these sentiments through its all-hands meetings and requests its employees’ feedback through platforms like Lattice and its Engagement Surveys. 

How you can apply InStride’s ideas: Look for ways to make your employees feel heard. This can be done in literal ways, such as asking for written feedback. It can also seek this sense of mutual understanding through catering events to the employees’ interests. 

Strategies to decode, maintain and improve company culture.

Frequently Asked Questions

What is a good company culture like.

A good company culture is one that encourages mutual respect, open communication and shared goals among employees.

Companies with a positive company culture often foster employee growth and development, employee well-being and workplace environments that are diverse and inclusive of all employees.

Why is company culture important?

Company culture reflects the identity and core values of a company, largely affecting how employees approach their work and interact with colleagues. A strong, positive company culture can increase workplace productivity and employee engagement, as well as decrease employee turnover. 

What are some examples of company culture?

Some examples of company culture include Microsoft, which fosters a culture of employee growth and learning , and Google, which fosters a culture of inclusion, belonging and diverse perspectives .

Brennan Whitfield, Rose Velazquez and Ana Gore contributed reporting to this story.

Recent Company Culture Articles

3CO01 Business Culture and Change in Context Assignment Guideline

Task one – slide deck for team day.

Students will prepare a presentation on “The Business Environment” to help HR team understand issues affecting the business environment.

AC 1.1 Application of an analysis tool (such as PESTLE) to examine the key external forces impacting or likely to impact an organisation’s activities

Students analyse the external forces using PESTLE, SWOT, Porter’s Five Forces model and BMC, which guide professionals understand how the organisation operates.

Battista (2021) explains the need to carry out a PESTLE analysis to examine the political, economic, social, technological, legal and environmental factors. Professionals collect information and explore the risks that might affect the business environment. PESTLE analysis is an effective tool that supports organisational strategic business planning, helps in workforce planning, marketing, product development and organisation change.

SWOT analysis tool examines the organisational Strengths, Weaknesses, Opportunities and Threats (Wilson, 2021). Students when analysing these tools should explain the advantages and disadvantages of each of the analysis tool, and explain how the tools influence decision-making within the organisation.

AC 1.2 An explanation of an organisation’s business goals and why it is important for organisations to plan for how they will achieve these. Your explanation should include examples of planning, such as how a business has been structured or specific policies introduced or people practices followed, in order for business goals to be achieved

To answer this question, students may identify a specific company in their country. For instance, Unilever is a British multinational company that students may refer to when answering the question.

Business goals determine organisation progress and enhance successful running of the business. Business goals motivate employees and other organisation stakeholders to realise the organistaion vision. Unilever goals are to improve people’s health and wellbeing, improve people’s livelihood and provide products sufficient to halve the environmental footprint.

Businesses engage in planning to develop a positive employment climate for the employees, ensure that they develop policies that link to organisation practices and strategies. To achieve business goals, people professionals and managers should plan to enhance business continuity.

AC 1.3 An explanation of an organisation’s products and/or services and main customers

Students identify the products and services that the organisation offers to the market. Unilever offers food products beauty products and personal care products to the customers.  Unilever has a large customer target with customers ranging from small children to the elderly.

Students should provide a specific presentation on what each customer segment receives from the company.

AC 1.4 A short review of different technologies available to people professionals and how these can be used to improve working practices and collaboration. You might consider for example, technologies relating to communications, information sharing, record keeping, learning, wellbeing, productivity or security

According to Mohdzaini (2021), technology highly affects the future of work and employees’ involvement to completing future roles and responsibilities. Students should identify different types of technologies such as-

• Electronic forms of communication such as social media and use of smart phones
• Use of technologies on file management and document sharing
• Students further explain how technology improve working practices
• Technology approaches to communication, efficiency improvement, security and productivity.

Task two – Guidance leaflet on organisation culture and impact of change

AC 2.1 What is meant by workplace (organisation) culture

According to Young (2021), organistaion culture refers to the norms, behaviours and values that determine people’s characteristics, interactions and relationships.  Students further explain the positive and negative cultures and the role of people professionals in developing cultures that create meaning to work.

AC 2.1 Why it is important to foster an appropriate and effective workplace culture

Culture helps employees understand the organisation and its operations, gives employees an opportunity to voice their views and develops connections with the employers.

An appropriate workforce culture values diversity and inclusion, promotes employee engagement, motivation and retention. Additionally, culture affects people and organisation performance.

AC 2.2 How organisations are whole systems in which different areas and aspects such as structure, systems and culture, are all inter-related

Students explain the different types of organisational structures and systems (hierarchical, divisional functional and matrix). Students explain the significance of value-driven organisations. Students explain how people professionals strive to achieve holistic systems that influence people behaviours and organisation cultures.

AC 2.2 An example of how good people practice, and an example of how bad people practice can impact other parts of the organisation or beyond the organisation (for example through developing new and better ways of doing things or through poor practice stimulating new legislation)

Students provide a scenario of how good people practice impacts the organisation. For instance, people professionals explain the value of learning and development and its significance in improving employees’ skills and knowledge. Students then provide a scenario of how bad people practice impacts the organisation. For example, lack of support to people’s mental and physical health is a bad people practice in the organisation. Managing the issue would require people professionals to develop practices that support good health. This involves developing counselling programmes to reduce stress and improve wellbeing.

It is crucial for students to note that they can use different examples depending on their engagements and experiences in an organistaion.

AC 2.3 How individuals may learn and develop in different ways in organisations and how this might be accommodated in assessing and developing skills and capabilities

According to Hayden (2021), people professionals should develop learning policies to create a culture where people value learning for skills and knowledge development. Students may consider the following learning concepts when answering the question-

• Learning and competitiveness
• Importance of workplace learning
• Significance of learning to achieve high performance
• Learning trends (identifying employee learning gaps and causes of underperformance)

AC 3.1 Why it is important for an organisation’s business that change is predicted, planned and effectively managed

George (2021) acknowledge that change in an organisation is essential and professionals should be keen to plan and manage change for positive outcomes. Concepts that students should consider include-

• Change triggers (for example;- competition, change in technology, discontinuity)
• How change impacts the business
• Planning for change (role and purpose of introduction change)

BATTISTA, M. (2021) PESTLE analysis. Available at https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-analysis-factsheet [Accessed 18th July 2022]

GEORGE, S. (2021) Change management. Available at https://www.cipd.co.uk/knowledge/strategy/change/management-factsheet [Accessed 18th July 2022]

HAYDEN, D. (2021) Learning and development strategy and policy, available from https://www.cipd.co.uk/knowledge/strategy/development/factsheet [Accessed 18th July 2022]

MOHDZAINI, H. (2021) Technology and the future of work. Available at: https://www.cipd.co.uk/knowledge/work/technology/emerging-future-work-factsheet [Accessed 18th July 2022]

WILSON, M. (2021) SWOT analysis. Available at https://www.cipd.co.uk/knowledge/strategy/organisational-development/swot-analysis-factsheet [Accessed 18th July 2022]

YOUNG, J. (2021) Organisational culture and cultural change, available from https://www.cipd.co.uk/knowledge/culture/working-environment/organisation-culture-change-factsheet [Accessed 18th July 2022]

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6.5 Cross-Cultural Assignments

• What steps can you take to be better prepared for cross-cultural assignments?

At some point in your career, you are very likely to be asked to be involved in cross-cultural operations. You may encounter employees from other countries in the local company you work for, or your company may send you to another country to run international operations. When these situations arise, you will need to be prepared to manage cultural differences. In this section, we discuss some of the things companies and individuals can do to better prepare for cross-national differences.

One of the goals of any cross-cultural training is to increase an employee’s cultural intelligence. Cultural intelligence refers to “individuals’ capabilities to function and manage effectively in culturally diverse settings.” 21 The culturally intelligent manager is someone who can operate without difficulty in cross-national settings. Recent research suggests that cultural intelligence is made up of four dimensions:

• a cognitive dimension , focusing on the individual’s knowledge of values and practices inherent in the new culture acquired through education and personal experiences
• a meta-cognitive dimension , which reflects an individual’s ability to use cross-cultural knowledge to understand and adapt to the cultural environment they are exposed to
• a motivational dimension , which reflects the ability and desire to continuously learn new aspects of cultures and adapt to them
• a behavioral dimension , based on the ability of the individual to exhibit the appropriate forms of verbal and nonverbal behaviors when interacting with people from another culture

To give you more insights into the cultural intelligence measure, Table 6.9 provides some representative statements used to gauge a person’s understanding of these four dimensions of cultural intelligence various aspects of cross-cultural interactions.

Cross-Cultural Training through Education and Personal Experience: Low and High Rigor

Current research suggests that cross-cultural training can influence cultural intelligence. At a basic level, you can acquire cultural intelligence by taking classes in your program. Research has shown that taking cross-cultural management courses can enhance cultural intelligence. 22 For example, in a study of 152 MBA students, researchers found that cultural intelligence of the students increased after they took a cross-cultural management course. In another longitudinal study, researchers found that study abroad has significant impact on the cognitive and metacognitive aspects of cultural intelligence. How do multinationals approach cross-cultural training? The above provides examples of low-rigor training , in which individuals are exposed to critical information to help them understand the realities of a different culture but are not actively and directly engaged with the culture. 23 In such cases, instructors transfer basic information and knowledge to students through lectures, books, and case studies.

Low-rigor training has several important disadvantages. Participants often just receive information; they learn that differences exist but do not necessarily learn how to deal with cultural differences in a real-life situation. Furthermore, cross-cultural differences can be very subtle and nuanced, and this method cannot expose participants to such nuances. Balancing these significant disadvantages is one key advantage: low-rigor training tends to be the most cost effective.

Companies can also rely on high-rigor methods of training, in which participants are actively engaged in the process and can learn some tacit aspects of cross-cultural differences. 24 Examples of high-rigor training include classroom language training, case studies, and sensitivity training. High-rigor training also includes more experiential approaches such as role-playing, simulations, and field experiences. Some MNCs (multi-national corporations) also offer on-the-job training, during which employees are coached and trained while working at their jobs. This method allows the trainee not only to see the new culture, but also to learn how that culture interacts with the work environment. The advantage of this method is that it enables the participant to be much more actively engaged in learning, thereby facilitating transfer of knowledge. But as you might have guessed, high-rigor training is much more expensive to provide.

Which method works best? Experts agree that it depends on the nature of the assignment. Longer and more complex international assignments benefit from higher-rigor training. 25 Furthermore, because international work assignments tend to be more short-term in nature, ways to enhance the metacognitive aspects of cultural intelligence are necessary. 26 Today, because more managers tend to have more frequent but shorter assignments to international companies, having metacognitive skills is critical. As a result, brief lectures or other low-rigor methods that simply provide information may be useful in helping develop the cognitive aspect but not metacognition. In such cases, high-rigor methods that allow participants to be much more actively engaged with a culture will work well.

When Should Cross-Cultural Training Occur?

Another important aspect of cross-cultural training is the timing of the training. Some multinationals offer predeparture cross-cultural training , which provides individuals with learning opportunities prior to their departure. 27 Such training can take the form of 1- to 12-week programs, although two- to three-day programs are also very popular. After such training, the expatriate has a good understanding of expectations, what the local culture looks and feels like, and how to manage any local shocks when they arrive. This approach also makes individuals about to go to another country less anxious about the unknown.

Multinationals will also often opt for postarrival cross-cultural training , which occurs after an expatriate has arrived in the foreign country and can address issues in “real time.” Armed with local cultural knowledge and training, the expatriate can delve into work issues without worrying about daily living issues.

Recent research provides evidence of the utility of cross-cultural training. For example, a recent study of 114 expatriates showed that both predeparture and postarrival training had positive effects on several aspects of their success. 28 Specifically, in a study in Vietnam, the findings show that both predeparture and postarrival training positively impacted the ability of expatriates to adjust to their work and general environment. Additionally, such training was also effective in enhancing the ability of expatriates to better interact with locals. The researchers also examined the impact of language training. Not surprisingly, expatriates who received training in the local language were better able to adjust to local interaction than others.

The above study shows that both predeparture and postarrival training are important for success in cross-cultural management. While the study shows that it is most effective for MNCs to provide more than one type of training, the findings also show that postarrival training has the most impact on the types of cross-cultural adjustment. While companies tend to shy away from the more expensive postarrival training, the study suggests that the investment may be worthwhile if it enables expatriates to succeed.

Best practices advise that the optimal time for predeparture training programs is around three to five weeks prior to the international assignment. Training provided too far ahead of time may not be very effective because the expatriate may not activate all learning readiness and may forget the training if it occurs too far ahead of the assignment. Best practices also suggest that postarrival training is best delivered 8 to 12 weeks after arrival. This allows the expatriate to experience cross-cultural interaction and phenomena and to be better ready to gain the most from the training.

Adapting Behavior to the Culture

A final issue that managers need to address is that the training should not focus only on identifying and teaching about differences. 29 Experts agree that this focus on differences is a problem in current cross-cultural training approaches. While identifying and understanding cultural differences is useful and necessary, trainers often don’t provide guidance as to how the participants should adapt and react to such cultural differences. It is therefore necessary for the multinational to take the necessary steps to teach cross-cultural sojourners to adapt their behaviors so that they act and react in culturally appropriate ways. Experts also suggest that such training should not be static and limited to web pages or documentation. Training should be integrated with the actual work that the employee is engaging in.

Concept Check

• How should training to manage cultural and regional differences occur?
• How should training for cross-cultural assignments be implemented?

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Access for free at https://openstax.org/books/principles-management/pages/1-introduction

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3CO01 BUSINESS, CULTURE AND CHANGE IN CONTEXT

• October 14, 2022
• Posted by: Fletcher Samuel
• Category: CIPD Level 3

Table of Contents

Introduction to 3co01 new assessment brief.

The first unit in the Level 3 Foundation Certificate in People Practice is 3CO01. The new brief investigates the internal influences that shape the business and the culture in which it operates. The unit investigates the behaviours of people professionals in managing change. The new brief asks students to answer the following questions in an estimated 2500 words. Students base their responses on their organization or a familiar organization. I’ll use McDonald’s as an example in this guideline.

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Assessment questions

1.1 An examination of the key external influences impacting or likely to impact the organisation’s activities

The guideline

Students will explain three external factors and their impact on the organization (positive or negative). Students can use the PESTLE analysis tool to identify and discuss the factors (political, economic, social, technological, legal, and environmental) that affect McDonald’s business operations. As an example:

• Political factor: Brexit.
• Economic factor: Covid-19 pandemic
• Legal Factor: Changing employment regulations laws

Students will explain how the factors listed above help them understand the business market environment.

1.2 A discussion of the organisation’s business goals and why organisations need to plan for how they will achieve these

A business goal is a target that the company intends to achieve within a certain time frame. McDonald’s business goal is to provide a welcoming environment for customers as well as nutritious food. Students detail the other organizational goals as well as the objectives that support business within the external environment.

Students will then discuss why professionals must plan how they will achieve business objectives. The reasons should be thoroughly discussed to ensure that HR is aligned with the organization’s goals and objectives.

1.3 A discussion of the organisation’s products and/or services and main customers

The students will describe the core products, the actual products, and the augmented products.

Students will also explain the customer characteristics and demographics, as well as the efforts made by the company to ensure that customers’ needs are met.

McDonald’s main products are fast food, beverages, and desserts. Among the services offered are improved dining experiences and a strong emphasis on customer service.

McDonald’s caters to low and middle-income customers, the majority of whom are students, employees, and parents with young children.

1.4 A short review of different technologies available to people professionals and how these can be, or are, used to improve working practices and collaboration. You might consider, for example, technologies relating to communications, information sharing, record keeping, learning, well-being, productivity, or security

Students provide three examples of workplace technology used by professionals. Here are some examples:

• Social media technology
• Artificial intelligence
• Cloud automation

Students go on to describe how each technology improves work practices and collaboration. Social media technology, for example, improves communication, artificial intelligence improves service, learning, and productivity, and automation improves the automation of manual processes to speed up functions, particularly record-keeping.

Finally, students explain the benefits and drawbacks of the technologies discussed. 

2.1 What is meant by organisational culture and why it is important to foster an appropriate and effective workplace culture

Students define workplace culture as the concept that describes how things are done in the organization. The underlying beliefs, values, patterns, and principles that comprise an organization’s work system are referred to as its culture.

Students can refer to Charles Handy’s model of organizational culture, which describes the following elements:

• Task culture
• Person culture
• Role culture

Students explain why it is critical to cultivating a positive culture. Some of the reasons are as follows:

• Increase employee involvement
• Accept diversity and inclusion.
• Improve internal consistency

Finally, students will provide one example of positive workplace culture and one example of negative workplace culture. Here are some examples:

• A culture that encourages employee learning to improve growth and career development.
• Employee competition that is unhealthy and harms the employees

2.2 How organisations are whole systems, in which different areas and aspects such as structure, systems and culture, are all inter-related, and how people professionals work and actions could impact elsewhere in the organisation

Students describe various organizational structures, such as the flat or tail structure. Students may also include an organizational chart to demonstrate the roles of various professionals in various fields of work.

Students explain how various areas of the organization interact with one another to achieve holistic systems. For instance, a discussion about how the innovative development sector connects with the government and the international market to form a holistic organization.

Finally, students give one example of a good people practice, such as providing employees with safe and healthy working conditions, and one example of a bad people practice, such as failing to comply with employment laws.

3.1 Why it is important that organisational change is planned, and effectively managed

Organizations must adapt to change. Change should be planned and managed by people professionals to have a positive impact on the organization. Change agents at work include:

• Change in structure
• Technology advancement
• Introduction of new educational programs
• Organizational Process Change

By referencing project planning, students further explain why it is important to plan and manage change. To achieve project goals and objectives, explain the role and purpose of planning.

PESTLE and SWOT tools are used to predict change in organizations.

3.2 The nature and importance of different roles that can be played by people practice professionals, concerning change agendas. You might consider roles such as gatekeeper, champion, facilitator, critical friend or record-keeper

For instance, people professionals advocate for employee rights by following change agendas.

When implementing change agendas, students explain the support that people professionals provide. 

3.3 How organisational change can impact people in different ways, such as changing their role or status or financial situation, and the different ways people may respond to change

Examples of change:

• An upgrade, regrade, or downgrade in the financial sector
• Loss of employment
• Changes in the family
• Competitor relationships

In this lesson, students examine how people respond to change using a model or theory. Here are some examples:

• Kubler-Ross model
• Fisher curve
• BATTISTA, M. (2021) PESTLE Analysis. Available at https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-analysis-factsheet
• GEORGE, S. (2021) Change Management. Available at https://www.cipd.co.uk/knowledge/strategy/change/management-factsheet
• MOHDZAINI, H. (2021) Technology and the future of work. Available at https://www.cipd.co.uk/knowledge/work/technology/emerging-future-work-factsheet
• YOUNG, J. (2020) Organisational culture and cultural change. Available at https://www.cipd.co.uk/knowledge/culture/working-environment/organisation-culture-change-factsheet
• 3CO01 Assignment Example

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• Boston Red Sox

Red Sox designate veteran pitcher Rich Hill for assignment

The Red Sox bring up right-hander Luis Guerrero to bolster the bullpen.

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The Boston Red Sox designated pitcher Rich Hill for assignment on Friday. Hill, who signed with the team in August, made four relief appearances and had an ERA of 4.91. Noah K. Murray/Associated Press

BOSTON — One of the feel-good stories of the Boston Red Sox season didn’t last long.

Rich Hill, who returned to the team recently at age 44, was designated for assignment Friday. In Hill’s place, the Red Sox added right-hander Luis Guerrero to their active roster.

Hill, who sat out the first half of the season to coach his son’s Little League team, signed a minor league deal with the Red Sox in mid-August and was promoted to the big leagues soon after.

Hill made four appearances with the Red Sox, all in relief, compiling a 4.91 ERA. His last appearance came earlier this week when he entered a game at Citi Field against the New York Mets and issued two walks in 1/3 inning.

Guerrero, 24, had a 3.31 ERA at Worcester while holding batters to a .198 average. He averaged 13.09 strikeouts per nine innings over 42 game for the WooSox. A native of the Dominican Republic, Guerrero moved to Boston as a child. He was a 17th-round pick by the Red Sox in 2021.

It’s unknown whether Hill intends to continue his career. He’s pitched in 20 seasons, compiling a lifetime mark of 90-74 with a 4.01 ERA. Advertisement

Drafted in 2002, Hill has played for 13 organizations including some, like the Red Sox, several times. He pitched for the Sox in 2010, 2011, 2012, 2015, 2022 and again this season.

“It’s more about Guerrero than anything else,” said Manager Alex Cora. “With Rich, obviously, tough one. Everybody feels for him, everyone in the organization. He’s going to be a Red Sox for life. But I think it’s smart for us to start getting guys here that can contribute now and obviously in the future.”

Cora noted that Hill struggled with control, with three walks in 3 2/3 innings.

“He looked good in the first (outing) here,” said Cora. “Then the (Kerry) Carpenter at-bat was a good one and he gave up the homer (in Detroit). The last one (in New York), he wasn’t able to throw strikes.”

BREWERS: Minor league pitcher Ever Urena was suspended for 56 games following a positive test for the performance-enhancing substance Stanozolol under baseball’s drug program for players assigned outside the U.S. and Canada.

A 19-year-old right-hander, Urena agreed to a minor league contract with the Brewers in July had a 0.00 ERA and one save in six games and 5 1/3 innings in the Dominican Summer League. Advertisement

RANGERS: Elvis Andrus signed a ceremonial one-day contract to officially retire with Texas, the team he played for in the first 12 of his 15 seasons in the majors.

Andrus made his big-league debut as a 20-year-old shortstop in 2009 and was a steady presence up the middle when the Rangers went to back-to-back World Series in 2010-11. He was also part of AL West-winning teams in 2015-16.

PHILLIES: Philadelphia placed third baseman Alex Bohm on the 10-day injured list because of a left hand strain.

Bohm hurt his hand Aug. 29 while taking a swing in the game against Atlanta. He remained with the club, hoping for a quick recovery. But Bohm didn’t heal sufficiently, forcing the Phillies to remove him from the active roster.

• Catcher J.T. Realmuto left in the fourth inning against Miami, two innings after fouling a pitch off his left knee.

DODGERS: Los Angeles placed pitcher Gavin Stone on the injured list, and it’s uncertain whether he will return this season. Advertisement

Stone was the last Dodgers starter who had been healthy all season. Now he has right shoulder inflammation. He won’t throw for 10 to 14 days before attempting to ramp back up with less than a month left in the regular season, Manager Dave Roberts said.

DIAMONDBACKS: Catcher Jose Herrera left the game at Houston after Kyle Tucker struck him on top of the head on a follow-through in the fifth inning.

Tucker struck out swinging, with his bat hitting Herrera on the top of his helmet. Herrera crumpled to the ground, and Manager Torey Lovullo and a trainer immediately raced to the plate.

FRIDAY’S GAMES

YANKEES 3, CUBS 0: Luis Gil pitched six sparkling innings in his return from a back injury, and New York won at Chicago.

Aaron Judge hit an RBI double and scored on Austin Wells’ two-run single as New York scored three times in the third inning in its first game at Wrigley Field since 2017. Judge went 1 for 3 with a walk in his 10th straight game without a home run – his longest streak of the season. Advertisement

ROCKIES 3, BREWERS 2: Michael Toglia hit a three-run home run, Ryan Feltner struck out six over six innings of one-run ball at Milwaukee and Colorado won consecutive games for the first time since early August.

Feltner (2-10) held Milwaukee to a pair of hits while walking three for his first victory since April 10. The only blemish came in the third when Jake Bauers walked and scored on a base hit by Joey Ortiz.

ORIOLES 2, RAYS 0: Dean Kremer took a no-hitter into the seventh inning, Gunnar Henderson hit his 36th home run and Baltimore won at home to remain atop the AL East.

Kremer lost his no-hit bid when rookie Junior Caminero led off the seventh with a sharp single to left field. Dylan Carlson then grounded a single to right. After Josh Lowe reached on an error to load the bases with no outs, Kremer was pulled by Manager Brandon Hyde with Baltimore nursing a 2-0 lead.

BRAVES 3, BLUE JAYS 1: Max Fried pitched seven strong innings and Atlanta won at home.

Fried (9-8) had command of the plate all night, striking out eight and allowing just five hits. Toronto’s lone run was unearned, coming in the third inning on an Atlanta error. Advertisement

PHILLIES 16, MARLINS 2: Trea Turner was a triple shy of the cycle, Kyle Schwarber hit his 33rd homer and Bryce Harper had three hits to help Philadelphia win at Miami.

Johan Rojas added three doubles, and Kody Clemens also had three hits for the Phillies.

METS 6, REDS 4: Mark Vientos hit a pair of two-run homers, including a leadoff shot in the 10th inning that sent New York to a win at home for its eighth consecutive victory.

New York is riding its longest winning streak since an eight-game run in August 2019. Vientos also connected in the first inning for the Mets, who remained tied with Atlanta for the last National League wild card.

ROYALS 5, TWINS 0: Cole Ragans scattered four hits in six scoreless innings as the Kansas City won at home and traded places with Minnesota in the AL Central and wild-card standings.

The Royals now hold a half-game lead for second place in the division and the second wild-card spot.

ANGELS 5, RANGERS 1: Italian rookie Sam Aldegheri won for the first time in the major leagues, allowing a run on three hits in six innings for Los Angeles at Arlington, Texas.

Aldegheri (1-1), the first major league pitcher born and raised in Italy, struck out seven and walked three in his second career start. Last Friday night, the 22-year-old left-hander gave up seven runs – two earned – in five innings in a 9-5 loss to Seattle.

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Intercultural and International Business Communication

The international assignment, learning objectives.

By the end of this section, you will be able to:

• Describe how to prepare for an international assignment.
• Discuss the acculturation process as an expatriate.
• Describe effective strategies for living and working abroad.

Suppose you have the opportunity to work or study in a foreign country. You may find the prospect of an international assignment intriguing, challenging, or even frightening; indeed, most professionals employed abroad will tell you they pass through all three stages at some point during the assignment. They may also share their sense of adjustment, even embrace of their host culture, and the challenges of reintegration into their native country.

An international assignment, whether as a student or a career professional, requires work and preparation, and should be given the time and consideration of any major life change. When you lose a loved one, it takes time to come to terms with the loss. When someone you love is diagnosed with a serious illness, the news may take some time to sink in. When a new baby enters your family, a period of adjustment is predictable and prolonged. All these major life changes can stress an individual beyond their capacity to adjust. Similarly, in order to be a successful “expat,” or expatriate, one needs to prepare mentally and physically for the change.

International business assignments are a reflection of increased global trade, and as trade decreases, they may become an expensive luxury. As technology allows for instant face-to-face communication, and group collaboration on documents via cloud computing and storage, the need for physical travel may be reduced. But regardless of whether your assignment involves relocation abroad, supervision of managers in another country at a distance, or supervision by a foreign manager, you will need to learn more about the language, culture, and customs that are not your own. You will need to compare and contrast, and seek experiences that lend insight, in order to communicate more effectively.

An efficient, effective manager in any country is desirable, but one with international experience even more so. You will represent your company and they will represent you, including a considerable financial investment, either by your employer (in the case of a professional assignment) or by whoever is financing your education (in the case of studying abroad). That investment should not be taken lightly. As many as 40 percent of foreign-assigned employees terminate their assignments early, Tu, H., & Sullivan, S. (1994). Business horizons . Retrieved from http://findarticles.com/p/articles/mi_m1038/is_nl_v37/ai_14922926 at a considerable cost to their employers. Of those that remain, almost 50 percent are less than effective. Tu, H., & Sullivan, S. (1994). Business horizons . Retrieved from FindArticles.com: http://findarticles.com/p/articles/mi_m1038/is_nl_v37/ai_14922926

Preparation

With this perspective in mind, let’s discuss how to prepare for the international assignment and strategies to make you a more effective professional as a stranger in a strange land. First we’ll dispel a couple of myths associated with an idealized or romantic view of living abroad. Next we’ll examine traits and skills of the successful expatriate. Finally, we’ll examine culture shock and the acculturation process.

Your experience with other cultures may have come firsthand, but for most, a foreign location like Paris is an idea formed from exposure to images via the mass media. Paris may be known for its art, as a place for lovers, or as a great place to buy bread. But if you have only ever known about a place through the lens of a camera, you have only seen the portraits designed and portrayed by others. You will lack the multidimensional view of one who lives and works in Paris, and even if you are aware of its history, its economic development, or its recent changes, these are all academic observations until the moment of experience.

That is not to say that research does not form a solid foundation in preparation for an international assignment, but it does reinforce the distinction between a media-fabricated ideal and real life. Awareness of this difference is an important step as you prepare yourself for life in a foreign culture.

If the decision is yours to make, take your time. If others are involved, and family is a consideration, you should take even more care with this important decision. Residence abroad requires some knowledge of the language, an ability to adapt, and an interest in learning about different cultures. If family members are not a part of the decision, or lack the language skills or interest, the assignment may prove overwhelming and lead to failure. Sixty-four percent of expatriate respondents who terminated their assignment early indicated that family concerns were the primary reason. Contreras, C. D. (2009). Should you accept the international assignment? BNET . Retrieved from http://findarticles.com/p/articles/mi_qa5350/is_200308/ai_n21334696

Points to consider include the following:

• How flexible are you?
• Do you need everything spelled out or can you go with the flow?
• Can you adapt to new ways of doing business?
• Are you interested in the host culture and willing to dedicate the time and put forth the effort to learn more about it?
• What has been your experience to date working with people from distinct cultures?
• What are your language skills at present, and are you interested in learning a new language?
• Is your family supportive of the assignment?
• How will it affect your children’s education? Your spouse’s career? Your career?
• Will this assignment benefit your family?
• How long are you willing to commit to the assignment?
• What resources are available to help you prepare, move, and adjust?
• Can you stand being out of the loop, even if you are in daily written and oral communication with the home office?
• What is your relationship with your employer, and can it withstand the anticipated stress and tension that will result as not everything goes according to plan?
• Is the cultural framework of your assignment similar to—or unlike—your own, and how ready are you to adapt to differences in such areas as time horizon, masculinity versus femininity, or direct versus indirect styles of communication?

This list of questions could continue, and feel free to add your own as you explore the idea of an international assignment. An international assignment is not like a domestic move or reassignment. Within the same country, even if there are significantly different local customs in place, similar rules, laws, and ways of doing business are present. In a foreign country, you will lose those familiar traditions and institutions and have to learn many new ways of accomplishing your given tasks. What once took a five-minute phone call may now take a dozen meetings and a month to achieve, and that may cause you some frustration. It may also cause your employer frustration as you try to communicate how things are done locally, and why results are not immediate, as they lack even your limited understanding of your current context. Your relationship with your employer will experience stress, and your ability to communicate your situation will require tact and finesse.

Successful expatriates are adaptable, open to learning new languages, cultures, and skilled at finding common ground for communication. Rather than responding with frustration, they learn the new customs and find the advantage to get the job done. They form relationships and are not afraid to ask for help when it is warranted or required. They feel secure in their place as explorer, and understand that mistakes are a given, even as they are unpredictable. Being a stranger is no easy task, but they welcome the challenge with energy and enthusiasm.

Acculturation Process

Acculturation , or the transition to living abroad, is often described as an emotional rollercoaster. Steven Rhinesmith Rhinesmith, S. (1984). Returning home . Ottawa, Canada: Canadian Bureau for International Education. provides ten steps that show the process of acculturation, including culture shock, that you may experience:

• Initial anxiety
• Initial elation
• Initial culture shock
• Superficial adjustment
• Depression-frustration
• Acceptance of host culture
• Return anxiety
• Return elation
• Reentry shock
• Reintegration

Humans fear the unknown, and even if your tolerance for uncertainty is high, you may experience a degree of anxiety in anticipation of your arrival. At first the “honeymoon” period is observed, with a sense of elation at all the newfound wonders. You may adjust superficially at first, learning where to get familiar foods or new ways to meet your basic needs. As you live in the new culture, divergence will become a trend and you’ll notice many things that frustrate you. You won’t anticipate the need for two hours at a bank for a transaction that once took five minutes, or could be handled over the Internet, and find that businesses close during midday, preventing you from accomplishing your goals. At this stage, you will feel that living in this new culture is simply exhausting. Many expats advise that this is the time to tough it out—if you give in to the temptation to make a visit back home, you will only prolong your difficult adjustment.

Over time, if you persevere, you will come to accept and adjust to your host culture, and learn how to accomplish your goals with less frustration and ease. You may come to appreciate several cultural values or traits and come to embrace some aspects of your host culture. At some point, you will need to return to your first, or home, culture, but that transition will bring a sense of anxiety. People and places change, the familiar is no longer so familiar, and you too have changed. You may once again be elated at your return and the familiar, and experience a sense of comfort in home and family, but culture shock may again be part of your adjustment. You may look at your home culture in a new way and question things that are done in a particular way that you have always considered normal. You may hold onto some of the cultural traits you adopted while living abroad, and begin the process of reintegration.

The international assignment requires adaptability. FIGURE 18.3: © 2010 Jupiterimages Corporation

The international assignment requires adaptability.

You may also begin to feel that the “grass is greener” in your host country, and long to return. Expatriates are often noted for “going native,” or adopting the host culture’s way of life, but even the most confirmed expats still gather to hear the familiar sound of their first language, and find community in people like themselves who have blended cultural boundaries on a personal level.

Living and Working Abroad

In order to learn to swim you have to get in the water, and all the research and preparation cannot take the place of direct experience. Your awareness of culture shock may help you adjust, and your preparation by learning some of the language will assist you, but know that living and working abroad take time and effort. Still, there are several guidelines that can serve you well as you start your new life in a strange land:

• Be open and creative . People will eat foods that seem strange or do things in a new way, and your openness and creativity can play a positive role in your adjustment. Staying close to your living quarters or surrounding yourself with similar expats can limit your exposure to and understanding of the local cultures. While the familiar may be comfortable, and the new setting may be uncomfortable, you will learn much more about your host culture and yourself if you make the effort to be open to new experiences. Being open involves getting out of your comfort zone.
• Be self-reliant . Things that were once easy or took little time may now be challenging or consume your whole day. Focus on your ability to resolve issues, learn new ways to get the job done, and be prepared to do new things.
• Keep a balanced perspective . Your host culture isn’t perfect. Humans aren’t perfect, and neither was your home culture. Each location and cultural community has strengths you can learn from if you are open to them.
• Be patient . Take your time, and know a silent period is normal. The textbook language classes only provide a base from which you will learn how people who live in the host country actually communicate. You didn’t learn to walk in a day and won’t learn to successfully navigate this culture overnight either.
• Be a student and a teacher . You are learning as the new member of the community, but as a full member of your culture, you can share your experiences as well.
• Be an explorer . Get out and go beyond your boundaries when you feel safe and secure. Traveling to surrounding villages, or across neighboring borders, can expand your perspective and help you learn.
• Protect yourself . Always keep all your essential documents, money, and medicines close to you, or where you know they will be safe. Trying to source a medicine in a country where you are not fluent in the language, or where the names of remedies are different, can be a challenge. Your passport is essential to your safety and you need to keep it safe. You may also consider vaccination records, birth certificates, or business documents in the same way, keeping them safe and accessible. You may want to consider a “bug-out bag,” with all the essentials you need, including food, water, keys, and small tools, as an essential part of planning in case of emergency.

KEY TAKEAWAYS

• Research one organization in a business or industry that relates to your major and has an international presence. Find a job announcement or similar document that discusses the business and its international activities. Share and compare with classmates.
• Conduct a search on expat networks including online forum. Briefly describe your findings and share with classmates.
• What would be the hardest part of an overseas assignment for you and why? What would be the easiest part of an overseas assignment for you and why?
• Find an advertisement for an international assignment. Note the qualifications, and share with classmates.
• Find an article or other first-person account of someone’s experience on an international assignment. Share your results with your classmates.
• Communication For Business Success. Authored by : anonymous. Located at : http://2012books.lardbucket.org/books/communication-for-business-success/ . License : CC BY-NC-SA: Attribution-NonCommercial-ShareAlike

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More From Forbes

5 ways employee mental health can determine your company's success.

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Kent Ingle is president of Southeastern University , author of several leadership books and host of the Framework Leadership podcast.

Mental health holds considerable power in the workplace. Now more than ever, it’s crucial to cultivate an environment that promotes awareness and encourages healthy boundaries and practices.

A staggering 45% of adults ages 35 to 44 experience mental illness, with adults ages 18 to 34 reporting the highest rate at 50%, according to a Harris Poll survey. It is easy to assume that the effects of mental health can be limited to your personal life. However, it has the power to directly impact all aspects of your life—especially your professional life.

From my experience, I’ve found that an employee’s mental health can affect their performance and overall success within their role. This can ultimately impact a business’s daily operations and long-term prosperity. Your company’s culture should be conducive to mental well-being. If not, it can be detrimental to your employees and your organization as a whole.

Here are five reasons why mental health should be prioritized in the workplace.

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The state of an individual’s mental health influences their ability to be productive and truly effective in their work. If an employee is preoccupied with stress, anxiety or depression, they will likely be unable to devote their full attention to the task at hand. Approximately 12 billion working days are lost to depression and anxiety globally, costing $1 trillion per year according to the World Health Organization (WHO).

If you want to see your employees reach their full potential, provide an atmosphere that supports their well-being. A mentally healthy team has the capacity to be more focused, motivated and creative. You will most likely find that your employees are able to give their best when free from mental roadblocks, so look for ways to create a safe space.

Attendance And Retention

When your employees are battling with their mental health, they’re prone to miss more work days than usual or may even leave your organization altogether. ComPsych Corporation reported that mental health-related leaves of absence have increased by 300% within the last six years.

Your team may not feel the effects of an absent team member right away. However, it doesn’t take long before the missing labor takes a toll and late assignments start to pile up. This can leave the rest of your employees scrambling to fill in, leaving them to fall behind on their own work as a result.

Decreased attendance from staff can have long-term consequences for an organization, spreading teams thin and adding unnecessary stress. If these absences become permanent, it will likely only add more to the to-do list.

Company Culture

Without an emphasis on the importance of mental health and well-being, you cannot promote your company as offering a positive culture. Looking after your employees and ensuring that your workplace encourages healthy boundaries and expectations is key to establishing a thriving culture.

A Mental Health America survey found that 81% of workers "who feel mentally or emotionally safe in their workplace report that workplace stress does not affect their mental health." Employees need to feel valued and cared for in order to effectively function in their roles. Lacking a supportive company culture can result in disunity and the eventual breakdown of an organization. Prioritize cultivating a healthy company culture.

Employee Satisfaction

A large proponent of a company’s success is an efficient and productive workforce. Your team needs to experience a sense of fulfillment within their roles and the organization as a whole. This will inspire them to serve to the best of their abilities. International career consultancy City CV reported that 71% of executives believe that "employee happiness is critical to a company’s success."

Prioritizing your employees’ mental health is a crucial aspect of keeping them happy and engaged with their work. Show them you truly care about their well-being. Actively help them feel more content in their roles and motivated to work hard.

Ethical Responsibility

You have an ethical responsibility to treat your team with honesty, diligence and respect. A crucial part of this is addressing mental health concerns and offering the proper support for these issues. According to Mental Health America’s survey, employees’ perceptions of an organization’s leadership have a greater influence on their mental health than co-worker or team dynamics.

Your team looks to you for guidance and direction. You have the power to influence how they perceive the company, their position and themselves as employees. Your leadership holds great weight in the workplace, so it’s important to use that authority to implement a safe environment and healthy practices.

Mental health impacts all aspects of your organization. It affects employee well-being, productivity, performance and satisfaction—and can influence your organization’s day-to-day operations and success. What’s one step that you can take today to further implement a positive and compassionate workplace environment for your team?

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