March 24, 2023 How to Foster a Positive Corporate Culture

Businesses can still maintain a positive corporate culture as they embrace remote and hybrid work models with heightened flexibility.

By Stephanie Coward, Managing Director of HCM, IRIS Software Group

Before the pandemic, only a small percentage of the population was working remotely and according to a 2021 National Council of Compensation briefing, three-quarters of workers had never worked from home. But the pandemic changed all that. Stay-at-home orders saw millions of people having to quickly adapt to working from home; setting up make-shift offices or working from kitchen benches, navigating video-call etiquette for the first time. Now, almost three years on, what began as a temporary measure has become an unexpected perk. Having reaped the benefits of enhanced work-life balance, more time with loved ones, and reduced commuting costs – many employees are reluctant to return to the office, forever changing the work landscape.

Despite hybrid working offering the best of both worlds, it has also brought new challenges. A lack of collaboration and excessive work hours – with employees struggling to switch off at the end of the day – have been some of the negative consequences of the flexible work model. Gallup’s 2022 survey reveals one of the top challenges of flexible working is maintaining organizational culture. Almost a third (32%) of respondents said they feel less connected to the organization’s culture when they work remotely or in hybrid format.

However, a Gartner report found that 67 percent of employees expect to be able to work flexibly, more than they did pre-pandemic; and for 55% of employees, it will impact whether they stay with a company. Therefore, organizations which mandate on-site working requirements, even if it’s just for certain days, risk losing staff. Business leaders must find ways to build and maintain a positive corporate culture in a hybrid and remote working environment.

The value of interpersonal connection

While many workers are satisfied with working from home, some employees prefer to be on-site in search of interpersonal connection and collaboration. In a remote environment there is no option to pop by a co-worker’s desk for a quick question or grab a coffee with your boss – all of which were regular daily occurrences. The personal connections built through these interactions often boost team morale and connectivity, helping to establish an organization’s culture.

While much of this is lost in a virtual setting, it doesn’t need to be that way. Both hybrid and fully remote firms can embrace a more flexible working model, while also creating space for interpersonal interaction. There are several approaches that create team engagement in today’s workplace:

• In-person quarterly gatherings. These work well for teams that are either fully remote or agree they don’t need regular meetings
• Dedicating time for social catch ups. Rather than a ‘water-cooler’ conversation, organizing time to talk socially can build team cohesion and foster genuine connections. These also give the opportunity to acknowledge team rituals such as coffee time or birthday celebrations
• In the office together. Agreeing a day of the week or month that all members of the team are in the office creates more opportunities for teams to share experiences, focus on solving larger problems and regular professional development

These interactions allow employees to build interpersonal relationships through socialization, helping to foster positive relationships and ultimately, boost productivity.

Start with managers

Establishing a positive culture starts at the top. Managers play a critical role in setting the tone for the rest of the team, helping every employee understand their roles and responsibilities, and where they fit into the larger organizational structure. Managers set expectations for the team across performance, communication and hours worked; and in a flexible environment where teams can be dispersed across the country, a managers’ guidance becomes even more critical.

When the interaction between managers and employees is good, it encourages greater contributions from team members, better communication and collaboration, and more positive interactions that help to improve job satisfaction. In order to minimize burnout, it’s also important that managers lead by example, ensuring they log off at the end of the day and don’t answer emails outside work hours. This will give all employees – whether on-site or remote – permission to switch off at the end of the day and avoid suffering burnout.

A firm’s success is through positive culture

Maintaining organizational culture is one of the greatest challenges of flexible work. However, there are solutions to overcome this challenge. The first step is to build a respectful relationship with employees; listening to their concerns and taking their feedback on board; because only once an organization truly understands what its employees want, can they start to foster authentic relationships. Once organizations know how, and how often, employees are keen to meet up, they can set a regular cadence for activities solely focused on interpersonal interactions and start building a positive company culture.  

There is no one-size-fits-all approach. Organizations need to find methods that work best for their own unique teams, in a way that builds meaningful professional relationships in an organic way. With a strategy in place, firms can foster their culture and focus on what truly matters – delivering the important work and value-added services their clients need.

Stephanie Coward is Managing Director of Human Capital Management (HCM) at IRIS Software Group.

Subscribe to Industry Today