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Company culture is more than just a buzzword – it is the foundation of your business. A positive, strategic culture can impact everything from employee morale to financial performance. In this comprehensive blog, we’ll explore what company culture is, why it is vital for SMEs, and how to improve it for long-term business success. 
 

What is company culture? 

Company culture is the environment you create for your employees and customers, and it should be tangible, even to an outsider. It encompasses your systems, values, behaviours, and the experiences you offer both to your team and clients. 
 
At its core, company culture is simply how things get done in your workplace. Picture this: a stranger walks into your office. What is their experience? 
 
🟒 Are they greeted with a smile and a warm welcome? 
🟒 Does your receptionist offer a comfortable seat and refreshments? 
🟒 Are they kept up to date, regarding any delays? 
 
These simple interactions reflect a company culture that is approachable, warm, and welcoming. Contrast that with a scenario where the stranger is ignored until they approach someone for help – the latter signals a less positive, more unwelcoming culture. 

Why comapny culture matters for your business 

A great company culture does not just feel good – it drives results. A strong culture contributes to key performance metrics such as: 
 
➑️ Financial success – strong company culture leads to better employee productivity and customer satisfaction, directly impacting your bottom line. 
➑️ Employee retention – when employees feel valued and supported, they are more likely to stay long-term. 
➑️ Innovation and creativity – a thriving culture fosters collaboration, new ideas, and problem-solving. 
➑️ Customer satisfaction – happy employees are more likely to provide exceptional service, leading to happier clients. 
 
When company culture aligns with employees' values and supports their growth, it creates an engaged workforce that drives results. Not only does this benefit your current team, but it also helps with recruitment. A positive, inclusive culture enhances your reputation and attracts top talent. 

Types of company culture: where does your business fit? 

Understanding your current culture is the first step toward improvement. Many companies fit into one or more of these eight common culture styles: 
 
1. Caring – focuses on relationships and trust, with leaders who prioritise teamwork and support. 
2. Purposeful – driven by a shared mission to make a positive impact, with a focus on sustainability and compassion. 
3. Learning – encourages creativity and innovation, with leaders who are forward-thinking and open-minded. 
4. Enjoyable – a light-hearted, fun culture where leaders value spontaneity and humour. 
5. Results-focused – prioritises achievement, with goal-oriented and performance-driven leaders. 
6. Authoritarian – competitive and control-driven, with a strong focus on structure and dominance. 
7. Safety-focused – values planning, security, and preparedness, with a risk-conscious leadership style. 
8. Orderly – built on respect, structure, and consistency, with leaders who emphasise rules and procedures. 
 
Many businesses incorporate aspects of multiple styles, but conflicting cultural elements – such as a mix of safety-focused and learning-driven approaches – which can create challenges. Understanding where your company fits is critical to aligning your culture with your business goals. 

A step by step approach on how to improve your business's culture 

Improving your company culture is not an overnight task, but with a strategic plan, you can create a positive and productive environment: 
 
1. Assess your current culture - start by gathering feedback from your employees and observing the behaviours that define your workplace. Look for strengths and areas that need improvement. Conduct surveys, hold focus groups, and evaluate company-wide interactions. 
 
2. Define your ideal culture - identify the values, behaviours, and goals that resonate with your vision for the business. Think about which aspects of the culture styles align with your long-term objectives. 
 
3. Create a mission statement - write down your company’s values, expectations, and goals. This statement should serve as the foundation of your culture and be shared widely across your organisation. Use it for hiring and ensuring internal alignment with your cultural vision. 
 
4. Implement supportive policies - foster employee well-being by implementing policies that promote work-life balance, professional development, and team collaboration. Consider offering: 
 
➑️ Flexible working arrangements 
➑️ Regular team-building activities 
➑️ Volunteering and community involvement opportunities 
➑️ Ongoing professional development  
 
5. Reinforce positive behaviours - reward and recognise employees who embody the culture you want to promote. Celebrate achievements, highlight cultural ambassadors, and ensure that leaders within the business models the behaviours you want to see across your team. 

 Why Should You Outsource Your HR in 2025? 

 We specialise in supporting SMEs like yours to enhance company culture and align it with business objectives. Whether you are just starting to address your culture or you are looking for guidance on how to refine existing practices, we can help, call πŸ“± 0781 3084152 or email πŸ“§ daxa@hrresultsltd.co.uk Taking your HR from 'to do' to 'done'  

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