7 signs a business has good company culture


Developing a positive company culture is a priority for all companies because it creates a happy workforce, reduces turnover costs and attracts talented employees. Despite the goal being widespread among the business community, only some actually achieve it in the eyes of their employees.

In this handy guide, we’ll explore seven signs that a business has a good company culture. But before that, let’s learn exactly what company culture is.

What is company culture?

Defining company culture is immensely difficult and what constitutes a good one is widely disputed. Although there are different definitions of a positive company culture, there are general trends that we can identify across all workplaces.

Company culture encapsulates how an employer interacts with their employees and how those employees interact with each other. It also involves the opportunities and perks that workers have access to and is evidenced by how many staff members a business can retain.

Beyond individuals themselves, company culture also considers how a business engages with its obligations in environmental, social and governance matters. If a company can provide evidence of excellent performance and clear future targets in these areas, they are more likely to be considered as having a positive company culture. After all, people enjoy working for businesses that are doing good in the world.

Companies with a positive culture can expect a workforce of happy employees who enjoy coming to work. Unfortunately, 30% of people see their work as “just a job to get them by”, suggesting that more than one in four people don’t feel part of a positive company culture.

Evidence of positive company culture

Those employees who enjoy a good company culture will find it difficult to leave because they like the atmosphere, management structure and environmental goals of who they work for. Below you’ll find seven signs that a business has a good company culture:

Investing in employees

With trends suggesting that younger staff are more likely to move onto new job opportunities elsewhere, motivating employees to stay for the long term can be challenging. To avoid your staff members becoming bored, make sure that you’re investing in them at every level.

Sign them up for training programs and give them lots of opportunities to learn new skills. Then, reward that new skill set with internal promotions to ensure that your employees feel valued.

Providing employees with perks

Employers regularly misinterpret the reason for resignations as being solely about pay. While this is often the case, staff are also motivated by the perks that they’re being offered. Free coffee, exclusive discounts and social events are all perks that employees enjoy.

A company offering lots of perks is likely to enjoy better staff retention and is more likely to be described as having a good company culture.

Low employee turnover

If employees are part of a good company culture, they’re less likely to leave. If a business enjoys low staff turnover, this is a clear indicator that they operate a positive culture. Staff at these workplaces are likely to be around for years, decades or their entire working career.

Regular communication

Employees can’t trust a workplace that is keeping secrets, so it’s important to foster a culture of open communication. Everyone should feel that they’re informed and that they are active participants in the direction of the business.

This is achieved in workplaces through regular emails to all staff and sessions where everyone can collaborate on goals.

A diverse workforce

A clear sign that a company has a good culture is its diversity. Employing the same type of people isn’t only inappropriate, but it also limits the range of insights and skills you’re bringing into the business.

Companies with a positive workplace culture will have a detailed diversity policy listed on their website.

An ESG framework

These days, it’s very important for a company to have environmental, social and governance (ESG) targets. They should monitor their accomplishments in these areas and set clear goals with deadlines. Employees enjoy working for brands that they believe are taking their moral responsibilities seriously.

ESG investing is on the rise, meaning that companies with a good ESG framework are more likely to succeed, which creates a more positive and enjoyable atmosphere for staff.

Feedback opportunities

If staff feel unheard by senior leaders, they may decide to gossip among each other. This generates a poor company culture.

This can be avoided by ensuring that staff have lots of opportunities to provide feedback. The space in which they can do this should be free of pressures so that they are comfortable giving negative feedback.

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