The foundation of a thriving company is rooted in the wellbeing of its employees. At the heart of happy, engaged workers is a shared sense of value, community and freedom. Building a strong workplace culture is an investment that all leaders should prioritize – not only for employee satisfaction, but also for the overall health of the organization.
Yet, establishing a strong cultural foundation remains a challenge for many organizations. A recent survey from McKinsey Health Institute found that only 57% of employees globally reported good holistic health at the workplace, including physical, social, spiritual and mental wellbeing, while a fifth of people reported symptoms of burnout.
This disconnect is reflected in declining employee happiness, talent retention and engagement rates. To build a healthy company culture, leaders must establish a people first approach that fosters trust, provides opportunities to learn, builds community and amplifies their voices.
How Culture Directly Impacts Talent Retention & Engagement
A recent Gallup report found that global employee engagement declined to just 21% in 2024, signaling a significant decline since employee wellbeing hit a peak at 35% in 2022. Employee engagement is deeply connected to trust, belonging and overall satisfaction in the workplace. Without these core elements, organizations will struggle to retain and attract top talents.
SHRM’s The State of Global Workplace Culture report found that a staggering 57% of workers who rate their company culture poorly are actively or will soon be looking for a new job. In contrast, those in positive organizational settings are nearly four times more likely to stay.
Retention and recruitment are critical to market success. But that success depends on a workforce that feels seen, heard and valued. When employees align with a company’s mission and values, they’re more likely to stay, advocate for the organization and help attract others who share that vision.
Positive Working Environments Foster Creativity and Collaboration
A leading workplace culture empowers its workers with the freedom to be themselves and prioritizes a sense of trust. When employees feel safe to share new ideas and express themselves, this freedom fuels creativity, enhances purpose and elevates the quality of work. Research backs this up with 83% of workers who rate their culture as good or excellent report feeling more motivated to produce high-quality work.
Creating space to amplify diverse voices is essential to building inclusive, high-performing teams. Diverse perspectives drive innovation and help companies stand out in competitive markets, setting new industry standards along the way.
Tips for Establishing a Positive Workplace Culture
Establishing a healthy working environment requires ongoing effort. Here are three ways to kick a strong culture into motion:
Define the Mission: Establish a clear, purpose-driven mission that resonates with employees’ personal values. When people feel connected to the organization’s purpose, it fosters alignment and consistency across teams.
Opportunities to Connect: Events outside of day-to-day work, like team outings, social gatherings or book clubs, help build relationships and strengthen community.
Provide Space for Feedback: Regular feedback opportunities, such as employee check-ins or surveys, give workers a voice and reveal opportunities for improvement across the organization.
People-First Approach to Positive Company Culture
The average worker will spend one-third of their lifetime at work. That time should feel purposeful, valuable and well spent.
Modern workplaces must put employee wellbeing at the center of everything. That’s the key to building a mentally strong, sustainable culture where people are proud to contribute their time, energy and ideas.