Workplace Culture: The Foundation for Sustainable Growth

Why Workplace Culture Drives Growth 

Business leaders are increasingly recognising that company culture is more than just a set of values written in a handbook—it shapes how employees work, interact, and innovate. Research supports the following; 

• Engagement & Retention: According to SHRM, 83% of employees who rate their workplace culture as good or excellent are motivated to produce high-quality work, while workers in poor cultures are nearly four times more likely to leave. 
• Leadership Impact: A UK government study highlights that businesses investing in strong leadership and management see measurable improvements in innovation and workforce productivity. This is not a recent consideration, as this report from 2012 shows.
• Performance & Longevity: A Chartered Institute of Professional Development (CIPD) review confirms that companies with constructive cultures experience higher engagement, lower turnover, and stronger financial outcomes. 

Whilst it’s great to have fun at work - we spend many of our waking hours at work - that isn’t the be all and end all. And I’m not bitter due to only being runner up in the “most fun colleague of the year, 2023”. I’m over that now. Honestly, I am. 

But, workplace culture isn’t just about making work enjoyable—it’s a strategic advantage that fuels resilience and long-term business success. And if you can enjoy the colleagues you work with, and enjoy the cakes people bring into the office and more then that is the cherry on top of this particular culture cake. 

Core Elements of a Strong Workplace Culture 

I’ve enjoyed being part of an incredibly strong workplace culture at several points in my career. It drove me to be the best I could be, and to support and challenge my colleagues in a way that resonates and is understood by others as that’s “the way things are done around here”. But I have also seen how a culture can change very quickly. Where people are self-interested and critical of their colleagues it creates a toxic environment, halts collaboration and decisions are made based on the interests of the tiny few and not the many. You can set up a “culture club” or a “working group” and do as many staff surveys as you like but if you don’t have the right ingredients then you’ll be cooking up a culture catastrophe. 

 So, what are the key ingredients that make a workplace culture truly effective? 

1. Leadership & Vision

Culture starts at the top. Leaders set the tone by fostering values that resonate with employees and drive business goals. When leaders lead with clarity, authenticity, and purpose, employees align themselves with the company’s mission. 

2. Trust & Psychological Safety

A workplace where employees feel safe sharing ideas, giving feedback, and collaborating leads to innovation. Trust fosters transparency and accountability, essential components for growth-oriented teams. 

3. Innovation & Growth Mindset

Encouraging learning, creativity, and adaptability keeps businesses ahead of change. Organisations that invest in training and promote a growth mindset have higher employee satisfaction and long-term competitiveness. 

4. Inclusion & Team Dynamics

A diverse and inclusive workplace leads to stronger collaboration, deeper problem-solving, and greater innovation. A culture that prioritises teamwork and inclusion creates an environment where people genuinely want to contribute. 

5. Recognition & Accountability

Celebrating achievements and ensuring employees feel valued strengthens motivation. I still remember a hand-written letter from my Director 15 years ago telling me that I’d been a top performer and citing the things I had excelled at. It also told me where he thought I could reflect and consider my own performance. Powerful stuff. And it showed to me that he had given up his time to write something for me about me. Time is a wonderful gift. 

I always want to get to know and understand my colleagues. With a personal connection I can better understand them, their drivers and motivations and I am better-placed to help them if they might need it. When I left a recent role I sent personal notes to several colleagues, past and present. I want them to know that I care about them and value what we did together. And that even though we are no longer colleagues, I am still there to support them. When I left, my line manager didn’t even call to wish me well. Different approaches to leadership can be effective in different scenarios and I seek learning in everything I do, as it helps me understand and try to maximise my potential. Feedback loops—both formal and informal—help reinforce positive behaviours while driving continuous improvement. 

How SMEs Can Cultivate a Culture for Growth 

For small and medium-sized businesses, creating a thriving culture doesn’t require massive budgets or elaborate initiatives—it’s about intentional leadership and consistent practices. Here are some actionable steps: 

• Define & Reinforce Core Values: Embed your business values into daily decision-making. If you don’t have core values - you do by the way, you just might not have written them down - then consult staff and find out what they are. Are they right for your business and what you want to achieve? 

• Encourage Open Communication: Give employees a voice in shaping company direction. As many as you can, they are the team and without a team you are less likely to succeed. 

• Invest in Leadership Development: Support managers and leaders in cultivating an empowering work environment. We used external support where this was needed with great companies such as Lead Happy supporting the next tranche of leaders within the organisation. Sometimes you need impartiality and an outside view - be open to this. 

• Recognise Contributions & Celebrate Successes: A culture of appreciation fosters engagement and loyalty. Your companies will do loads of great stuff every single day. How do you celebrate it? Employee awards are good, but it’s the micro-actions and what happens every day that matters more. That phone call from a colleague to thank you for going above and beyond can make somebody’s day. If somebody you work with is fantastic then tell them. 

• Adapt & Evolve with Change: Growth-oriented businesses continuously refine their culture based on evolving needs. As you grow it’s hard to keep finding the “right people” and sometimes you won’t get every decision right. That’s ok, learn from it. I recently met with a business founder who proudly told me that their company was “built on 1,000 f**k ups”. That wasn’t a criticism, it was a credit to the company for being able to try something, fail, and learn from the experience. This ethos has created an organisational culture where change is normalised and employees aren’t afraid of failure. 

Final Thoughts 

Workplace culture is not a “soft” business element—it’s the bedrock of sustainable growth. Companies that cultivate strong cultural foundations aren’t just building happier workplaces; they are creating organisations that excel, innovate, and stand the test of time. 

 As leaders, the challenge isn’t just understanding the power of workplace culture—it’s intentionally crafting it for long-term success. So then leaders of today and the future: What steps will you take to shape a thriving environment for your business? At learnleadgrow, we have great experience of creating, embedding and enjoying fabulous cultures. Get in touch if you'd like to learn more.