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Tips for Developing a Strong Company Culture

Company culture leads to happier employees and better business prospects. Discover some tips to help develop the right company culture.

Happy employees are approximately 12 percent more productive, according to a recent study. In other words, a positive company culture can save your business money while also improving employee retention rates.  

Company culture refers simply to the lived experience of your employees. It is how your office team members function and relate to each other and how your company supports relationship-building, teamwork, and the broader community. But how can you specifically develop a strong company culture?

This is exactly the type of question Industrial and Organizational (I/O) psychologists are concerned with. By assessing, evaluating, and consulting for organizations, I/O psychologists can help develop a positive company culture.

To develop strong company culture, I/O psychologists may suggest the following.


  1. Understand your mission

What is your company’s mission? It’s important to sit down early on and determine this. Once defined, this mission should drive every decision your company makes. State your values in your company handbook, put them on your website, and ensure that every employee is aware of them. Making your purpose known can help keep employees engaged and on the same page, which strengthens your overall culture.


  1. Create a caring environment

Strong company cultures rely on compassion and inclusivity. If your company doesn’t treat your employees as individuals, your employees may not be comfortable at work and therefore won’t be dedicated to their roles. It’s vital to determine how you will create a culture of care at your company. By making work about more than just work, your employees will feel more invested in your company and fulfilled by their careers.


  1. Build culture from the start

Another way to ensure a strong company culture is by hiring according to the culture you hope to embody. Employees are the face and lifeblood of any business. Selecting the right team will help reinforce company values and culture, which is why I/O psychologists can be so instrumental in the hiring process.


  1. Bring people together

The physical layout of your office can make or break its flow. Depending on the nature of your business, consider switching to an open seating plan. This can include creating comfortable corners for employees to chat and setting up snack tables to fuel long days. By opening up the space for communication and community building, you invest in a stronger company culture.


  1. Communicate and evolve

A company must grow over time. In a recent study, the top 13 percent of surveyed companies were three times as likely to retain top talent than lowest-performing companies. These top-performing companies also posted 30 percent higher profit per employee.

That’s exactly why listening to your team is key to culture building. The field of I/O psychology is all about solving problems—and problems can only be solved via communication. Establish a culture that listens and you’ll help empower your company to evolve according to its own needs.


Every company is different, and every company has its own company culture needs.

To learn more about how The Chicago School’s I/O Psychology program can help, check out our course offerings. And for more psychology tips, visit our blog. You can also fill out the form below to request more information.


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