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The Relationship Between Company Culture and Employee Engagement

Company Culture and Employee Engagement The Relationship Between Company Culture and Employee Engagement

Organizations can cultivate a positive company culture and drive employee engagement and business performance by improving in these three critical areas.

In today’s competitive job market, with the US jobless rate down to around 4%, companies must prioritize employee engagement to attract and retain top talent. One way to achieve this is by cultivating a positive company culture. A positive company culture goes beyond ping pong tables and free snacks; it’s about creating an environment where employees feel aligned with the company’s values, valued and supported, and where trust and communication are at the forefront.

Here, we explore the relationship between company culture and employee engagement. We will focus on three key elements: alignment with values, feeling valued and supported, and trust and communication. Delving into each of these elements, we will offer insights into how organizations can cultivate a positive company culture to drive employee engagement and ultimately, business performance.

Alignment with Values

A company’s values define its purpose, vision, and mission. When a company’s values align with its employees’ personal values, it creates a sense of purpose and meaning in their work. Employees who are engaged in their work are more likely to feel a sense of pride and ownership in their role, leading to increased productivity and job satisfaction.

To truly align with the company’s values, it’s important for employees to understand what those values are and how they apply to their work.

Communicating company values to employees requires more than just a company mission statement; it requires a comprehensive understanding of the organization’s purpose and goals.

Leaders can achieve this by regularly discussing the company’s values and mission, both formally and informally, by incorporating them into employee training and development, and especially by reflecting the company’s values in their own actions and performance. For example, if one of the company’s values is teamwork, leaders can model collaborative behaviors by involving employees in decision-making processes and recognizing and rewarding teamwork.

Furthermore, organizations can strengthen alignment with their values by creating a culture that supports their values in practice. For example, if one of the company’s values is collaboration, it’s essential to create an environment that encourages and facilitates teamwork.

A culture that values innovation should support employees who take risks and generate new ideas. Praising value in employees’ efforts reflects value in the employees themselves; another crucial aspect to positive company culture.

Feeling Valued and Supported

Feeling valued and supported is crucial for employees to be engaged in their work. Employees who feel valued are more likely to go above and beyond their job requirements, take ownership of their work, and contribute positively to the company culture.

One way to show employees that they are valued and supported is to involve them in decision-making processes.

This can be done through regular meetings, surveys, or focus groups, where employees can provide feedback and ideas. When employees feel that their opinions are valued and their ideas are heard, they are more likely to be invested in the company’s success. 

Providing opportunities for growth and development is another way to show employees that they are valued. When employees see that their company is investing in their development, they are more likely to feel committed to the organization and motivated to contribute to its success.

Another way to make employees feel valued is through flexible work arrangements. This can include options for remote work, flexible hours, and unlimited vacation time. When employees have control over their work schedule, they are more likely to feel empowered and trusted, leading to increased job satisfaction and engagement.

To make employees feel valued, companies must recognize their employees’ contributions and efforts. This recognition can be in the form of verbal praise, bonuses, or promotions. Regular feedback and coaching can also help employees feel valued and supported. Praise, feedback, and other recognition and training efforts all contribute to positive pathways in mutual communication and ultimately, trust.

Trust and Communication

Trust and communication are the foundation of a positive company culture. A culture of trust is built on transparency, honesty, and accountability. When employees trust their company, they are more likely to feel empowered to take risks, innovate, and contribute to the company’s success.

Trust is built on consistent, transparent communication. This means providing regular updates on company performance, discussing the company’s goals and vision, and being open about any challenges the organization is facing.

When employees have a clear understanding of the company’s position and direction, they are more likely to feel confident and secure in their roles.

To foster trust, companies must communicate clearly and regularly with their employees. This communication should be open and honest, and employees should feel comfortable providing feedback and raising concerns. When employees feel heard and their concerns are addressed, they are more likely to feel valued and committed to the organization.

Leadership plays a crucial role in building trust and communication within an organization. Leaders who are approachable, transparent, and consistent in their behavior and decision-making build trust with their employees. They must also communicate the company’s vision, goals, and expectations clearly, ensuring that all employees understand their role in achieving these goals.

In addition to regular communication, it’s important for leaders to listen actively to their employees. This involves creating a safe space where employees can share their thoughts and feelings without fear of retribution. When employees feel heard and understood, they are more likely to trust their leaders and the organization as a whole.

Finally, building trust also involves being accountable and following through on commitments. Leaders should demonstrate that they are committed to their promises by delivering on their commitments and holding themselves and their team accountable. When employees see that their leaders are committed to the organization’s success, they are more likely to feel invested and engaged in their work.


A positive company culture is essential for employee engagement and organizational success. Alignment with values, feeling valued and supported, and trust and communication are the key factors that contribute to a positive company culture.

To create a positive company culture, companies must communicate their values clearly, recognize and support their employees’ contributions, and foster a culture of trust and communication. When employees feel valued, supported, and trusted, they are more likely to be engaged in their work, contributing to the company’s success.

Investing in a positive company culture is not only good for employees, but it is also good for business. Engaged employees lead to increased productivity, innovation, and employee retention, which translates into a competitive advantage for the organization. Therefore, companies must prioritize creating a positive company culture to ensure their long-term success.

Improve Company Culture with Effective Communications Tools from CultureWorx

Isn’t it time you addressed your workplace culture? Good, bad, healthy, or unhealthy—your company culture exists and is impacting your business daily—whether you acknowledge and manage it or not. CultureWorx is the first-of-its-kind SaaS solution to manage, measure, and improve company culture.

CultureWorx allows you to build your desired company culture around your core values with the in-app training, measuring, and reporting tools that will help you improve your culture and sustain it over the long haul.

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