6 Markers of a Great Company Culture

Do you work in an excellent culture for employees? Look for these attributes.

6 Markers of a Great Company Culture

We all know a great culture when we see it, and the opposite is also true. But, for most workplaces, building a strong company culture remains elusive.

From fun, perk-filled startup environments to corporate organizations offering extra time off and free coffee, companies everywhere continue to experiment with the right combination of benefits to make their culture stand out to employees.

Still, thriving, successful companies tend to lean on these six markers — not because they’re trendy, but because they’re timeless.

#1: Well-Defined Values Exist

“A great company culture starts with well-defined values and actually adhering to them,” explains Amy Zimmerman, head of global people operations at Kabbage, an online financial technology company that provides funding to small businesses and consumers. “It is an authenticity about who you say you are, proven by what your actions say about you.”

Kabbage's core value revolves around caring about people, she said, and they use that as a lens for how employees treat each other as well as customers, partners, investors and communities.

Combined with open and honest communication, Zimmerman says their company created a culture “where people are excited to come to work, feel challenged and energized by the work they do, and empowered to make a difference.”

#1: Well-Defined Values Exist

“A strong company culture creates a compass for driving the direction of the business,” says Melanie Lundberg, assistant vice president of talent management and corporate communications at Chicago-based Combined Insurance.

“The values and shared traits within a company create the standards of behavior that are allowed and expected within the organization," she said. "This helps an organization retain employees that embody the culture, attract new hires that want to be a part of the culture, and attract customers that are aligned with what the company stands for. Within a strong culture, the core values should be present and prevalent in all a company does, creating a consistent internal as well as external ‘company culture’ brand.”

#2: People Come First

“It’s important to understand that the road to a great company culture is built first on people, not business,” said Andy Bailey, CEO of Petra Coach and company culture expert.

“Team members are the ones doing the work and executing the vision of the company," he said.

#2: People Come First

Rebecca West, CEO and founder of Seriously Happier Homes, says it starts with compassion and trust.

“In companies with a great culture, there is a feeling of trust between coworkers, employees and management," she said. "That means that the leader can trust that if an employee calls in sick, they really are sick. If a leader assigns a particularly tough deadline, the team knows the leader is pulling their weight on it, too. If a client is upset, the leader will have the employee’s back and not throw them under the bus. And if an employee is thinking of leaving, that it can be discussed with the leaders and done with grace and good timing.”

#3: Look for Red Flags of Low Engagement

For employees, “engagement” often feels like a buzzword thrown at them by managers interested in looking good or hitting certain talent acquisition numbers.

That may be true, but it’s also a clear indicator of what’s working and what’s not.

If your people aren’t engaged, then you’ll be able to tell, pretty easily.

#3: Look for Red Flags of Low Engagement

Todd David is the chief people officer for FranklinCovey, and author of "Get Better: 15 Proven Practices to Build Effective Relationships at Work." He noted several key warning signs that indicate low morale or poor employee engagement.

“Meetings after the meetings, and lots of them,” he said. “People are fearful of speaking up, so they wait and have side conversations with only those they trust. Obviously, high turnover — today, talented people have too many options to stay in a company and culture that doesn’t feel rewarding. People showing up at 8 a.m. and leaving at 4:59 p.m. People who never volunteer for anything or do exactly what they are asked and nothing more. The level of employee engagement is the best indicator of the type of culture you are in.”

#4: Leaders Set the Tone, Always

David also tells companies that transparency is the number one differentiator between an exceptional culture and a mediocre, or even “good,” one. That’s related to communication, of course, but more importantly, how leaders act as role models for every single individual within an organization.

“Everyone wants to be a part of something that matters,” he notes. “People want to contribute. And while everyone shapes and is responsible for the organization’s culture, it starts with the leaders. Just as a parent sets the tone for the home, so do the leaders for the company. Transparency is key: do leaders ‘walk the talk’? We all agree how important that is, and we all talk about it, but are we doing it on a consistent basis? The organizations where leaders are actually modeling or trying to model mission and core values tend to have exceptional cultures.”

#4: Leaders Set the Tone

Meghann Isgan, director of team success at Readers.com, concurs culture starts at the top. If leaders don’t actively participate to foster the kind of culture they want or expect, she says, “no amount of free snacks and ping-pong tables will create a great environment.”

Leaders should get out of their offices, build personal relationships with team members who aren’t direct reports, and paint a picture of inclusion and encouragement. Even though most people know on a gut level that free snacks and table games aren’t solely responsible for building a solid culture, the stereotype continues.

“The trust that is exemplified in a company with a great culture is built on a foundation of open and regular communication,” agrees West. “That comes from management setting clear expectations and letting the team have input on standards and goals. It comes from regular team reviews that are about having a conversation that helps the team member and company grow, rather than being a formality and checking a box. It comes from leaders who think before they speak and have calm, measured, positive responses to challenges and obstacles.”

#5: Risk-Taking and Diverse Opinions are Encouraged

Any successful company knows the value of diverse perspectives, and that’s why Kovak encourages teams to prioritize a workforce with a wide range of backgrounds, personalities and genders.

Career expert Tammy Perkins, who formerly worked in human relations at Amazon and Microsoft, echoes the importance of diversity. She recommends looking for drivers of engagement to open up opportunities for others, and actively seeking input from voices not usually “at the table.” She is vocal about empowering employees to take risks and embrace mistakes in the spirit of growth and creativity.

“Fear of failure often prevents people from being successful and creative,” she says. “Empower employees to take risks and feel supported when mistakes are made, to fail fast and learn along the way. Reward behaviors that show a willingness to learn and grow, and provide employees with experiences that will challenge their thinking and their actions. A culture that is open to risk gives people an opportunity to learn and leads to innovation.”

#5: Risk-Taking and Diverse Opinions are Encouraged

Supporting innovation is critical, adds Zimmerman, because it gives people ample space to test concepts and explore ideas.

Paul Blanco, founder and CEO of Barnum Financial Group, attributes his company’s culture directly to its growth mindset, which is focused on education and development.

“Professional and personal growth is a priority,” he states. “We do not limit potential based on work history, current role, education level, etc. We put emphasis on willingness to learn. With a growth mindset, we encourage associates to try new things, even if that means failing at them. As long as our associates are learning in the process, we are comfortable with that risk.”

#6: Fun Balances Productivity

West advocates for something called “playful professionalism,” which essentially aims to meld socializing with productivity.

“A great company culture isn’t all work," she said. "It uses play to build relationships in the workforce and to encourage creativity. That doesn’t mean a company has to hold picnics and host parties — it might just mean that the next conference starts with having a craft table to solve a product problem instead of talking it to death.”

#6: Fun Balances Productivity

Recruiter Chelsea Kovak notes that strong companies create room for the voices of their employees.

“A good company culture is one where each employee understands how their individual contribution drives the company toward larger goals,” she said. “That means balancing fun team events with an emphasis on effective management, professional development opportunities, and a culture of transparency that makes people unafraid to ask questions.”

Hitting Reset

Finally, if your culture seems to be lagging, David says you can always hit the reset button — just know your chances to start over are somewhat limited, and leaders need to communicate the reason for the shift.

Fresh Starts

“Be serious about it,” he concludes. “If you’re ready to reset, you need to start with transparency. Be completely open about what’s been wrong. Apologize for it. Commit to change. And let everyone know what they can expect to see going forward. Ask for and be open to feedback along the way. Trust and culture won’t be built or rebuilt overnight, but it can certainly be rebuilt overtime.”