4 things that define a great workplace culture – and how to foster them

Today’s workforce is made up of people from different generations, backgrounds, capabilities, and locations. Leaders need to cater to individual needs and strengths while fostering a sense of belonging and connection.

From working across start-ups to multinational companies for almost two decades, I’ve noted that there are defining characteristics that separate the extraordinary workplaces from the ordinary ones. The leading companies often do these four things to cultivate happy and high-performing teams, which can, in turn, lead to increased experimentation and innovation and better business performance.

1. They rally around a collective purpose

Each person in the company brings a unique set of knowledge, skills and abilities, along with their tasks and responsibilities. In high-performing teams, individual employees understand how their work and expertise contribute not only to their team’s success but also to the company’s vision and strategy.

For employees, it is often difficult to see how your day-to-day job duties contribute and help the business achieve its goals and have a meaningful impact on its customers. Leaders who empower employees to have an active role in shaping the strategic direction of the business and regularly communicate its progress and impact create a sense of collective purpose and accountability.

One thing that our leaders do is regularly share stories from customers in the small-business community who have been able to access much-needed funding thanks to the work of employees. It’s a key motivator to see how your work can help others in a positive way. As organisational psychologist David Barkus puts it, “We work best when we know whose lives are made better.”

2. They know how to play to each other’s strengths

Just as each team member brings their own distinct set of skills and responsibilities to the table, they also bring their own strengths. Great team cultures are those that not only recognise each individual’s natural talents and areas of expertise but also know how to apply them to enable the team to work better together.

It’s important to get a clear picture of your team’s capabilities, and strength-based training and development can be a great way to do this. Leaders and employees can build confidence in their strengths and awareness of areas where they’re just not strong. It also enables more specific insights into not only the strengths of individuals on the team but also the collective strengths of the team as a whole.

A strength-based approach can lead to empathy for different working styles and viewpoints, improved collaboration and decision making, and greater performance at an individual and team level. It can also help improve hiring decisions by enabling leaders to better identify skill gaps in teams.

3. They create moments for genuine connection

A study of more than 1,100 US employees by Ignite80 found that high-performing team members spend 25 per cent more time than their peers discussing non-work matters with their colleagues at their office. While this is US-based research, anecdotally, we know that the best teams aren’t more effective because they spend their whole time working together. Rather, they invest time in connecting with each other.

When companies create great moments for non-work activities, it can yield closer friendships and more engagement and satisfaction, which, in turn, can lead to greater teamwork and productivity. This could be learning and development opportunities unrelated to work duties, volunteer work and community engagement, sporting activities or social events timed around cultural moments.

4. They celebrate boldness, realness and openness

Finally, great team cultures are those that make employees feel valued, appreciated and respected. Much research has been done around “psychological safety”, and an employee’s perceived level of authenticity in the workplace can contribute to their overall wellbeing and performance. But it can also improve how teams perform, through the expression of different ideas and perspectives.

When employees feel they can bring their full selves to work, they feel safe to take more risks and accountability and challenge traditional ways of working, which leads to creativity and collaboration. However, it’s important to set guardrails for employees and teams to do this effectively.

Building a great team culture takes more than recruiting and retaining top talent. It’s something we need to constantly nurture as leaders. By helping employees understand their unique contributions and strengths, creating opportunities for connection, and celebrating authenticity, companies not only help employees find fulfilment and happiness at work, but it leads to better outcomes for the business and its customers, too.

Elise Ward is the chief people officer at Prospa.