The days when jobs were scarce and applicants were just happy to find employment are a thing of the past in many industries. Skill shortages and remote work mean that employees can now choose which companies they want to work for. An employer's reputation, benefits, and corporate culture play a crucial role in remaining attractive and competitive in the job market.

Furthermore, corporate culture has a significant impact on employee satisfaction, motivation, and retention. This is reason enough to take a closer look at what corporate culture means, what defines it, and how it can be shaped.

What is corporate culture? A definition.

Corporate culture is an umbrella term that encompasses a multitude of shared values, rules, attitudes, and norms. It influences both how a company is perceived from the outside and the atmosphere and processes within, such as how decisions are made or the established workflows and actions. You could think of it as the "personality of the company."

Corporate or organizational culture determines how communication flows within the team, with managers, partners, and customers, how strongly employees identify with the company, and how teams and the organization as a whole develop.

Examples of elements that make up corporate culture include:

• The company's self-image: mission, vision, and values
• Internal and external communication
• Leadership style and hierarchies
• Working hours and other working conditions
• Office environment
• Salary
• Dress code
• Diversity management
• Culture of error and conflict resolution
• Work environment
• Family-friendliness and health promotion
• Agility, innovation, and risk-taking
• Employee benefits

Since corporate culture is made up of so many different aspects, measuring it is not trivial. Key performance indicators include employee satisfaction (determined through surveys), employee productivity/performance, the sickness rate, and turnover (average length of time employees stay with the company, especially compared to the industry average).

Different models

There are various models that map corporate culture and help in understanding this complex topic. Here is an overview of some examples:

The 7S model by Peters and Waterman

Tom Peters and Robert Waterman developed their model back in the 70s, which distinguishes between "hard" and "soft" factors that must be in balance. Therefore, all aspects must be considered when evaluating corporate culture.

The hard factors are:

• Structure (organizational structure)
• Strategy (strategic direction of the company)
• Systems (processes, tools)

The soft factors include:

• Skills (capabilities)
• Staff (people/personnel)
• Shared Values (visions/values = corporate philosophy and corporate culture)
• Style (cultural style/leadership style)

The Schein Model

One of the early models of corporate culture comes from Edgar Schein, who identified three levels in the mid-80s:

• Basic assumptions are unconscious and taken for granted. They are difficult to change and represent the deepest level of the model. This level includes, for example, the relationship with the environment and self-evident beliefs that are rarely questioned.
• Values, norms, and beliefs are partially visible and significantly influence behavior. They concern things like policies and rules, but also a corporate philosophy or mission.
• Artifacts are visible and conscious structures and behavioral patterns. Examples of this include language, how people interact with each other, the dress code, or office design.

The Hall Iceberg Model

Edward T. Hall depicts corporate culture as an iceberg, in which the visible area (the tip of the iceberg) is distinguished from the invisible. As with an iceberg, the invisible part of the model is significantly larger and more important, but is barely or not at all perceptible from the outside.

• Visible level or factual level: Mission, guidelines, corporate philosophy, appearance (e.g., website, office, employees)
• Invisible level or relationship level: Values, attitudes, unspoken rules, wishes and needs of employees, interpersonal relationships, conflicts

The Hatch Model

The model by Mary Jo Hatch views corporate culture as a cycle and process in which the different phases build upon and influence one another. It can be seen as a further development of the Schein model.

• Values are realized in artifacts
• Artifacts are expressed through symbols
• Symbols are interpreted through basic assumptions
• Basic assumptions manifest in values

These different levels influence one another.

The Hofstede model

Geert Hofstede’s model is based on multiple levels arranged in layers, much like an onion. According to this model, corporate culture consists of:

• Values (invisible and unobservable)
• Rituals (invisible and unobservable) – shared activities
• Heroes (visible and observable) – real or imaginary individuals who are recognized and valued
• Symbols (visible and observable) – objects, gestures, and outward appearance

In general, corporate culture can be simplified into two levels: the surface structure, which is perceptible from the outside, and the Deep structure, which influences actions and is largely unconscious.

Regardless of the model, the most important thing is to identify what your own corporate culture looks like, where the flaws and potential lie, and how these can be improved or leveraged.

Examples of a good corporate culture

There is no universal definition of what a “good corporate culture” is, as it always depends on the company and is highly individual. Industries can mean significant differences, as can the size of a company. Furthermore, not all factors can be influenced (see below).

Nevertheless, some general points that have proven successful in many companies can be summarized:

• Open and respectful interaction within the team, as well as between different hierarchies
• Flat hierarchies
• Equality
• Conflict avoidance
• Willingness to compromise

Using Google as an example of one of the largest employers, further points can be identified that have inspired other companies and continue to encourage them to improve their own corporate culture:

• Corporate benefits
• Self-determination
• Innovation
• Healthy approach to failure

In contrast, there are some general factors that can negatively affect the working atmosphere and company culture:

• Poor approach to failure
• Control, micromanagement, little personal responsibility
• Employees in competition rather than teamwork
• Psychological abuse, bullying, and anxiety

Changing company culture in 6 steps

As mentioned above, company culture can only be partially controlled and changed actively. While some factors have a significant influence on processes, values, and rules, they can be difficult or impossible to influence. These include:

• Changes in the industry
• Societal changes
• Changes within the company

It is therefore important to identify what can be changed and where the limits of your scope of action lie. The steps for change are as follows:

1. Recognizing that change is necessary. Perhaps turnover is high, the company does not have a good reputation in the job market, or employee satisfaction and productivity are declining. All these reasons can be traced back to company culture. It may also be time to adapt the company culture to societal changes or new conditions in the industry.
2. Allocating resources. Targeted change to company culture is a process that must be actively managed and will not happen on its own. This requires internal or external resources; it must be treated as a project just like client work or other company tasks. Who should lead this project? Is external support necessary? How much budget or capacity is available?
3. Taking stock. Perhaps the initial realization of what changes are necessary has already led to concrete ideas about what is going wrong or needs improvement. To identify further points, employee surveys or feedback sessions can also be helpful. Keep in mind, however, that anonymous surveys in particular will lead to honest answers if the existing company culture makes employees hesitant to voice criticism. Surveys of customers and business partners also help to complete the picture of how the company is perceived not only internally but also externally. Additionally, reviews on platforms like Google or other rating sites can be consulted—what are customers, current employees, or former staff saying?
4. Assessing strengths and weaknesses. Evaluating the results of the assessment provides a concrete roadmap for action. It is important not only to identify what needs improvement but also what is currently working well and should be maintained. Where do the current strengths lie, and where are the weaknesses and opportunities for improvement? Which points are most urgent, as they have the greatest impact on the working environment and the chances of attracting good candidates?
5. Developing a concept. The concrete goal and implementation strategy depend on the industry as well as the realistically achievable changes. Defining goals and corresponding metrics helps to measure how successful the changes were months or even years later.
6. Implementation. When implementing the defined points, all employees across different hierarchies should be involved. Furthermore, it is helpful for the leadership level to initiate the changes and lead by example.

8 tips for improving company culture

As mentioned, a good company culture is highly individual, just like the strategies used to improve it. Nevertheless, we can offer you a few general tips as inspiration.

You don't have to change everything, even if your analysis shows that action is needed. There are almost always established practices that should be preserved. Especially when you have many long-term employees who may find change more difficult than newer colleagues, it helps to keep some things that provide a sense of security rather than overturning everything completely. After all, a shift in company culture can sometimes lead to employees no longer being able to identify with the new culture.

When it comes to analysis and strategy, every level should be put to the test . Regardless of which of the models mentioned above is used as a basis, it is important to look at all relevant aspects, such as working methods, external presentation, internal and external communication, and the overall employee experience within the company.

In addition to internal analysis, societal aspects must not be overlooked. What does the future of work look like? Examples include increasing digitalization, even in traditional offline industries, or the hybrid work model.

Leadership always means setting an example. This is where you should start. Leading by example helps to implement changes across all levels of the hierarchy.

During major changes, it is especially important to bring long-term employees on board and involve them actively. Seek out conversations to build understanding for the changes, take concerns and fears seriously, and find solutions. Which training sessions or processes can help make it easier to accept and implement the new processes and rules of the company culture?

Watch for warning signs. Regularly measuring employee satisfaction and productivity is useful regardless of whether you are changing your company culture. It is the only way to recognize in good time if (further) adjustments are needed.

Consider company culture in recruitment and onboarding . New employees should not only bring the necessary skills but also be a good fit for the company and the team (“cultural fit”). Addressing these points during the interview process ensures there are no surprises later on. In addition to being introduced to the team, key contacts, and the company's tools and workflows, new hires should ideally also receive a brief orientation on the official and unofficial values, norms, and rules of the company.

Company culture is not static, but rather changes, influenced by people in leadership positions, the team, the industry, and society. It develops over years, sometimes decades. Accordingly, change can be a lengthy process, especially for long-established companies, and should be viewed more as a marathon than a sprint. It is worth taking stock regularly to measure where the company stands and which changes have had an impact so far.

Heycater! supports you and your company

Corporate culture also includes valuing employees and actively fostering trust and good collaboration. heycater! offers various solutions for teams and companies to achieve this. We have highlighted the benefits of regular team lunches for you in this article. Regular team events are another measure for team building and employee satisfaction. If your team works remotely on a permanent basis, for example, spread across different locations or even countries, a virtual event can help bring everyone together to have a good time. Take a look around our marketplace and get inspired by our offerings!

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