Company culture has become one of the most talked-about topics in modern business, and for good reason. As organizations navigate hybrid work, shifting employee expectations, and rising competition for talent, many leaders are asking: What is culture in the workplace? And how does it shape the way people work and perform? In this article, we’ll break down what workplace culture means, why it matters, and how it affects everything from retention and morale to innovation and business outcomes. We’ll explore different types of culture, what makes a culture positive or effective, and how organizations can build a culture that drives success.  Whether you’re in HR, leadership, or simply interested in how teams function, this guide will help you understand the role of culture in creating a workplace where people want to be and do their best work. What Is Culture in the Workplace? What is culture in the workplace? It’s how things get done when no one is watching. More formally, it refers to the shared values, beliefs, behaviors, and norms that shape how employees interact, make decisions, and experience their work environment. Culture is not a program; it’s the daily reality for your workforce. It lives in the tone of team meetings, the consistency of recognition, and the way people solve problems together. It influences how people feel, behave, and perform, and ultimately, whether they stay or leave. Why Workplace Culture Matters Understanding what culture in the workplace is and why it matters is essential for any organization that wants to thrive. Culture impacts everything from morale and engagement to innovation and performance. According to Harvard Professional Development, companies with a healthy culture enjoy lower turnover and higher satisfaction even in times of disruption. Culture creates belonging and direction. It makes employees feel connected to something larger than themselves. Gallup research shows that highly engaged teams see a 21% boost in profitability and 59% less turnover. Those outcomes stem from deliberate efforts to build a culture that supports people, not just processes. Culture also fosters psychological safety. When communication is open and values are clear, employees feel safe to speak up and take risks. That drives innovation, adaptability, and trust. Start Building a Culture of Appreciation Celebrate the Moments That Matter with Purpose and Impact. get program sampler What Is a Positive Culture in the Workplace? A positive workplace culture is one where employees feel respected, included, and energized to do their best work. It includes psychological safety, fairness, purpose, and connection. According to SHRM, positive cultures reflect values through consistent behavior, transparent communication, and inclusive leadership. In these environments: Feedback is welcome and constructive Recognition is authentic and timely Employees are trusted and empowered Gallup also notes that when employees feel a strong sense of belonging and purpose, their well-being and performance both rise. Positive culture doesn’t happen by accident. It’s shaped by clear values, reinforced by leadership, and sustained through rituals and everyday actions. What Is Good Culture in the Workplace? Good culture is when stated values match actual behavior. It’s not about ping pong tables or free snacks, it’s about integrity, consistency, and mutual respect. People in organizations with a good culture: Understand the purpose of their work Trust leadership to do the right thing Feel empowered to speak up and contribute Indeed defines strong culture as one that shapes how employees interact and how work gets done. When culture is aligned, people are more likely to stay, perform, and advocate for the organization. Types of Culture in the Workplace There’s no one-size-fits-all approach to workplace culture. Most organizations reflect a combination of cultural types, including: Hierarchical Culture: Focused on structure, control, and clearly defined roles. Often found in regulated industries or large enterprises Clan (Collaborative) Culture: Values relationships, teamwork, and loyalty. Feels like a tight-knit community Market (Competitive) Culture: Prioritizes results, performance, and external positioning. Common in sales and growth-driven companies Adhocracy (Innovative) Culture: Encourages experimentation, creativity, and speed. Ideal for startups and fast-changing industries What’s important is choosing a cultural model that aligns with your mission and people. Each type has strengths, but misalignment can lead to friction or disengagement. Pro Tip: Don’t overlook microcultures Even in strong organizations, each team has its own culture. Deloitte emphasizes the value of shaping both company-wide and team-level cultures for better alignment and performance. What Is a Safety Culture in the Workplace? Safety culture refers to the environment where employees feel protected, physically, emotionally, and psychologically. In strong safety cultures, people feel confident asking questions, raising concerns, and challenging decisions without fear of punishment. A culture of safety encourages: Open communication Leadership visibility Emotional support and well-being Accountability without blame According to Great Place to Work, trust and safety are cornerstones of high-performance cultures. They create space for employees to innovate and take ownership. What Is Organizational Culture in the Workplace? Organizational culture is the broad system of values, beliefs, and practices that guide how people behave across the entire business. It influences everything from hiring and communication to recognition and decision making. Organizational culture exists beyond any one team or location. It includes: How leaders lead How feedback is given How success is defined and celebrated Indeed defines it as how people interact and get work done. A strong culture fosters consistency, purpose, and collaboration across departments and functions. If you’re able to think more east-west and really pull the thread of the talent journey, the employee experience… that alone would be a great start to how we think about talent, which is one person with one seamless and connected experience and journey throughout your entire organization. – Jess Von Bank, DEI, Skills, and AI:
Insights for Value-Driven, High-Performance Culture How to Improve Culture in the Workplace If you’re looking to improve workplace culture, here are five foundational steps: Listen with intention Use pulse surveys and feedback tools to uncover how employees truly experience the culture, not just how leadership perceives it. Recognize what matters Build a culture of appreciation where recognition reinforces your values and behaviors. Support people leaders Managers shape the daily employee experience. Equip them with skills to lead inclusively and model your culture. Link daily work to purpose Show employees how their efforts support bigger goals. Purpose builds meaning and motivation. Create shared rituals From team check-ins to milestone celebrations, regular connection points strengthen belonging and shared identity. Whether your team is remote, hybrid, or in person, these steps help build culture at every level. Discover how an intelligent Recognition & Rewards system can elevate culture, empower leaders, and spark innovation across your workforce. download whitepaper FAQs: What Is Culture in the Workplace? What is workplace culture? Workplace culture is the shared values, behaviors, and norms that shape how employees interact and experience their work environment. Why is workplace culture important? It drives employee engagement, productivity, trust, and retention. A strong culture builds resilience and supports business success. Can teams have their own culture? Yes. These are called microcultures, and they exist within departments or teams. They should align with the overall organizational culture. How do I know if my culture is working Look for signs like low turnover, high engagement, strong collaboration, and alignment between stated values and actual behaviors. Final Thoughts When someone asks what culture is in the workplace, they’re asking about the heartbeat of your organization. Culture is not created in strategy decks, it’s built in everyday moments: how leaders show up, how people communicate, how recognition is handled, and how decisions get made. Ready to shape a culture that drives performance? Schedule a demo and see how our solutions can bring your workplace culture to life. Request demo Culture is not static. It’s always evolving. But when intentionally shaped, it becomes your greatest asset. Related posts How to Improve Company Culture: Practical Strategies That Work read more Why Workplace Culture Matters More Than Ever And How to Build One That Lasts read more Building the Future of Work: Reflections from the HR Leaders Conference 2025 in Dubai read more
