How does company culture affect employee engagement?

How does Company Culture affect Employee Engagement?

Employee Engagement is a measure of how good the relationship is between employer and employee; we’ve all heard it: happy employees equal productive teams. But what’s the magic ingredient? A stellar company culture. Building an engaging culture isn’t just about beanbags in the break-room or Friday drinks. It’s the secret sauce that keeps your workforce thriving, creative, and sticking around.

Need proof? Companies with high employee engagement report a 21% boost in profitability and a whopping 43% reduction in turnover. That’s right, your culture could be the golden ticket to happier employees and a healthier bottom line. Let’s dive into how and why company culture affects employee engagement—and what you can do about it.

This insightful article by WorkLife explores how disconnect between employer and employee is weighing heavy on productivity.

What Is Company Culture, and Why Should You Care?

Company culture is the vibe of your organisation. It’s the unwritten rules, shared values, and behaviours that define how your team interacts and works together. Think of it as the personality of your business.

A strong company culture sets the tone for how employees feel about their work. If your culture screams “we value you,” employees are more likely to bring their A-game every day. On the flip side, poor culture leads to disengagement—and disengaged employees are 24% more likely to quit.

The takeaway? Prioritising culture isn’t just a ‘nice to have’; it’s essential for keeping your top talent engaged and your organisation thriving.

How does Company Culture affect Employee Engagement? 3 How Does Company Culture Affect Employee Engagement?

  1. It Creates a Sense of Belonging
    A supportive culture makes employees feel part of something bigger. When your team feels valued, they’re more likely to stay committed and collaborate effectively. A study revealed that 54% of highly engaged employees noticed positive cultural changes in their workplaces.Pro Tip: Create rituals like monthly shoutouts or team-building activities that celebrate achievements and foster camaraderie.
  2. It Builds Trust in Leadership
    Trust is a two-way street. Employees who trust their leaders are more likely to buy into the company’s vision and support its goals. Trust also reduces the likelihood of employees jumping ship—a crucial factor in today’s competitive job market.Actionable Tip: Be transparent with your team. Share company updates, celebrate wins, and openly discuss challenges.
  3. It Boosts Productivity
    Engaged employees are 18% more productive than their disengaged counterparts. That’s the equivalent of squeezing an extra day of work out of every week. Imagine the impact on your bottom line!Quick Win: Empower employees with autonomy and the tools they need to excel in their roles.
  4. It Drives Innovation
    A positive culture encourages risk-taking and out-of-the-box thinking. When employees feel supported, they’re more likely to suggest innovative solutions that give your business a competitive edge.Pro Tip: Host brainstorming sessions where every idea—no matter how wild—is celebrated.

How does Company Culture affect Employee Engagement? 2

Warning Signs of a Poor Company Culture

Wondering if your culture could use a tune-up? Here are some red flags:

  • High turnover rates: Disengaged employees are the first to leave.
  • Negative feedback: Pay attention to employee surveys and exit interviews.
  • Lack of collaboration: If teams are siloed, it’s a sign your culture isn’t fostering connection.

The 2024 Work Trends Report by Slingshot highlights a number of signs that poor company culture is more common than you may think!

The Ripple Effect: From Culture to Engagement to Revenue

The connection between culture and engagement doesn’t stop at happy employees. Businesses with great cultures see tangible benefits, including a 33% boost in revenue. How? Engaged employees are motivated to innovate, deliver exceptional customer experiences, and go the extra mile.

One striking stat: teams with high engagement levels produce 18% more in sales. It’s clear—culture pays dividends.

How does Company Culture affect Employee Engagement? 4

How to Build a Culture That Drives Engagement

Here are seven practical steps to boost your company culture and employee engagement:

  1. Communicate Your Mission
    Employees want to know their work matters. Share your company’s mission and how their roles contribute to it.
  2. Invest in Team Building
    Whether it’s a day solving puzzles in an escape room or tackling a soapbox derby, team-building activities strengthen relationships and boost morale. (Psst, Zing Events has you covered for unique ideas!)
  3. Recognise Achievements
    Recognition doesn’t have to break the bank. A heartfelt “thank you” or a public shoutout can do wonders for morale.
  4. Provide Growth Opportunities
    Employees are more engaged when they see a future with your company. Offer training, mentorships, and clear paths for advancement.
  5. Foster Flexibility
    Today’s employees value work-life balance. Flexible hours or remote work options can make a huge difference.
  6. Listen to Feedback
    Employees are your culture barometer. Regularly ask for their input and act on it.
  7. Lead by Example
    Culture starts at the top. When leaders embody the company’s values, it sets the standard for everyone else.

The Role of Team Building in Company Culture

Team building activities are a fantastic way to strengthen company culture and boost employee engagement. They encourage collaboration, improve communication, and inject a bit of fun into the workplace. Activities like Zing Events’ “The Apprentice” or “Escape the Box” challenge teams to work together in exciting, high-pressure scenarios—just like in real life.

Remember, a thriving company culture isn’t built overnight. It’s the result of consistent effort, intentional decisions, and a commitment to valuing your team.

Final Thoughts: Make Culture Your Competitive Advantage

Investing in company culture is no longer optional—it’s a necessity. With nearly 45% of employees considering leaving their roles, creating an engaging workplace should be at the top of your priority list.

Great culture doesn’t just retain employees; it energises them. It’s the difference between a team that clocks in and one that innovates, collaborates, and drives your business forward.

Want to take the first step toward a more engaging culture? Consider incorporating regular team-building activities to strengthen bonds and spark creativity. Your employees—and your bottom line—will thank you.

By focusing on how to foster company culture and drive employee engagement, you’ll not only create a happier workplace but also position your business for long-term success. Now, go forth and build that dream culture!

Covering the length & breadth of the UK, Europe & Worldwide

Delivering over 350+ team building activities every year

Our own equipment, our own staff, our own twist.

Easy. Transparent.  Trustworthy.

Now we don’t like to blow our own trumpet about our team building activities. But, with over 500 reviews from our Reviews.io (average 4.88/5) platform and Google Reviews (average 4.9/5). We’d say they are pretty well received.