Organisational Culture And Employee Wellbeing: Connecting The Dots

Organisational Culture And Employee Wellbeing: Connecting The Dots
Last Updated: January 25, 2024

The connection between organisational culture and team member well-being has become increasingly evident in the contemporary business landscape. As organisations navigate rapidly changing environments, understanding this connection is beneficial and essential for long-term success.  


This article discusses how organisational culture impacts team members' well-being and why intertwining these facets is crucial for employees and businesses. 


The foundation of organisational culture 

Organisational culture is the members' collective values, beliefs, and principles. It acts as a guiding force, shaping team member behaviour and setting the tone for the work environment. 


Here are some ways companies can identify their organisational culture: 

  • Team member surveys and feedback: Regular surveys and feedback sessions can help understand employees' perceptions of the workplace culture. Questions may cover job satisfaction, communication styles, company values, and workplace dynamics. 
  • Observation of behaviours and practices: Observing how employees interact, how decisions are made, and how conflicts are resolved can provide insights into the prevailing culture.  
  • Review of mission, vision, and values: The company's mission statement, vision, and declared values often reflect the intended culture.   
  • Leadership and management styles: Leaders' behaviour and management styles significantly influence organisational culture.  
  • Company policies: Company policies such as work-from-home policies, dress codes, and performance review methods can reveal much about its culture.  

These are just some factors that offer different perspectives, and a combination of them can provide a comprehensive understanding of a company's organisational culture.

Impact on team member well-being 


Organisational culture significantly influences team members' well-being by shaping the work environment and stress levels. Having a positive work culture improves team members' well-being in several ways: 

  • Reduced stress and burnout: A positive work environment characterised by support, respect, and reasonable work demands can significantly reduce stress and burnout. Employees feel less pressured and valued, contributing to better mental health and job satisfaction.
  • Increased engagement and job satisfaction: Employees tend to be more engaged and satisfied with their jobs in a healthy working environment. They feel motivated and connected to the company's goals, creating a sense of purpose and fulfilment in their work. 
  • Better work-life balance: A positive culture often includes policies and practices that support work-life balance. This balance is crucial for mental and physical health, helping employees manage their personal and professional responsibilities effectively without undue stress. 
  • Improved physical health: A positive work culture can improve physical health. It can be through direct means, such as wellness programs, or indirectly by reducing stress-related ailments like hypertension, sleep disorders, and fatigue. 
  • Stronger workplace relationships: A culture that promotes teamwork, respect, and inclusivity fosters stronger relationships among colleagues. Positive interpersonal relationships at work are vital to creating a supportive and collaborative environment, which enhances overall well-being. 
  • Increased sense of belonging and inclusivity: When employees feel included and valued, regardless of their background or position, it boosts their sense of belonging and self-esteem. This inclusivity is a critical component of team members' well-being. 
  • Enhanced professional growth and development: Opportunities for learning and advancement are often more available in positive work cultures. Employees feel more empowered and capable, leading to increased confidence and job satisfaction. 
  • Reduced turnover and absenteeism: A positive work culture leads to higher retention rates and lower absenteeism. Employees are more likely to stay with a company where they feel happy and appreciated and less likely to take time off due to work-related stress and dissatisfaction. 

A positive work culture enhances the immediate work environment. It contributes significantly to employees' overall mental, emotional, and physical well-being, leading to a more productive and harmonious workplace. 

The role of leadership 

Without a doubt, any company culture change needs staff engagement. After all, they make up a considerable part of the organisation. However, there's no denying that leaders play a pivotal role in shaping and maintaining an organisation's culture. They set the example and establish the norms that trickle down the ranks. Influential leaders must also be empathetic and approachable, creating an environment where employees feel heard and appreciated. 

Leaders who foster a positive work culture are characterised by empathy and compassion. They demonstrate genuine concern for their employees, understanding their challenges and responding kindly. This approach helps build a supportive and caring workplace environment.

Communication and transparency are also key traits of these leaders. They prioritise clear, honest, and open communication, keeping their teams well-informed and encouraging feedback. It fosters a culture of trust and openness, where employees feel comfortable sharing ideas and concerns. 

Inspirational and visionary leadership is essential in cultivating positivity. Such leaders motivate their teams with a compelling vision and enthusiasm for the future. They create a sense of purpose and direction, inspiring employees to work towards common goals. 

These leaders are also known for their inclusivity and ethical behaviour. They value diversity, respect different perspectives, and ensure everyone feels included and valued. Acting with integrity and fairness, they build trust and set an ethical example for their teams.

Finally, leaders who cultivate a positive culture are approachable, adaptable, and supportive of professional development. They are accessible for guidance, adaptable to change, and resilient in facing challenges. By investing in their employees' growth and recognising their efforts, they create an environment where employees feel valued and motivated.

Strategies for cultivating a positive culture 

Companies can cultivate a positive work culture by demonstrating leadership commitment, setting clear values and expectations, and actively involving employees in decision-making. Leaders should embody the company's values and create a shared understanding of expected behaviours and practices. Employee participation in various aspects of the company, like feedback sessions and decision-making, fosters a sense of ownership and belonging. 

Recognising and appreciating employees' contributions is crucial, as is providing opportunities for professional development. Regular recognition, whether through formal awards or informal acknowledgments, boosts morale and motivation. Offering training programs and career development opportunities shows investment in employees' futures, enhancing their engagement and loyalty. 

A positive work culture also hinges on supporting work-life balance, maintaining effective communication, and ensuring a diverse and inclusive environment. Flexible work arrangements and respecting personal time off are essential for employee well-being. Open, transparent communication and a workplace that values diversity and inclusivity further contribute to a healthy and productive work environment.


The connection between organisational culture and employee well-being is undeniable. A positive culture catalyses employee happiness, health, and overall well-being. For businesses, an investment in cultivating a healthy culture is an investment in their greatest asset: their people. As the corporate world continues to evolve, this connection will only grow in importance, making it essential for organisational success in the 21st century. 


Editorial Team
This article was written by Editorial a Consultant at Industrial Psychology Consultants (Pvt) Ltd

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