Why Leaders are the Key to a Positive Culture and Engaged Teams

Years ago, I found myself in a business where the culture was slowly deteriorating. We were delivering results and clients were satisfied, but the energy and motivation were low and getting lower.

We were starting to forget WHY we were there.... and lose connection with our PURPOSE. It wasn’t just the lack of team energy that worried me—it was the sense that the leadership team had lost sight of our purpose and the values and behaviours shared in the handbook. This became a red flag for me because I’ve always believed that people are the heart of any business. Without a motivated and engaged team, no matter how much we push for results, we’ll eventually hit a wall.

The turning point came when I had an open conversation with one of the team members. She told me that although she enjoyed the work, she didn’t feel like her contributions were truly valued. That’s when it hit me: employee engagement isn’t just about hitting KPIs—it’s about creating a workplace where people feel valued and understood.

Over the years, I’ve learned that creating a positive workplace culture requires constant effort, but it’s the key to ensuring long-term success for any business.

If you don’t intentionally shape your culture, it will form by accident—and often not in the way you want.

Gallup’s 2023 State of the Global Workplace Report found that only 1 in 5 employees in the UK are actively engaged at work, and this disengagement is costing businesses up to £340 billion annually. So, what’s the solution? It's about building a culture where employees feel connected, empowered, and motivated. A positive workplace culture leads to higher engagement, greater innovation, and ultimately, improved results.

Creating a thriving culture and nurturing engagement isn’t just a "nice-to-have"—it’s essential to your business’s success. Research consistently shows that companies that invest in building a positive work culture see increased productivity, lower turnover, and stronger financial performance.

Research from CIPD highlights that organizations with a well-defined culture have 27% lower turnover rates and engaged employees are 21% more productive than their disengaged counterparts.

So how do we create and sustain that culture? It starts with clear values and shared goals.

It doesn’t happen by accident—it requires intentional effort from leadership to align the company’s values, practices, and feedback systems. According to McKinsey & Company, companies that focus on organizational culture outperform their peers by competing on values and fostering an inclusive environment.

What’s at Stake?

• Employee Retention: High engagement drives loyalty. Employees who feel connected to their company’s culture and mission are 87% less likely to leave (Gallup).

• Customer Satisfaction: Happy, engaged employees are more likely to deliver exceptional customer service, resulting in higher customer satisfaction and increased revenue.

• Innovation & Growth: A culture of trust and openness encourages employees to share ideas, contributing to better problem-solving and innovation. Companies with high levels of engagement experience 14% higher productivity and 30% greater profitability (Gallup)

4 Key Actions to Build a Thriving Culture

1. Define Your Culture and Values Clearly

A positive workplace culture doesn’t happen by accident—it requires clarity and direction from leadership. Set clear, actionable values that guide your team. These values should be embedded into everything from recruitment to decision-making. Google famously encourages employees to "be radically transparent," which has led to a culture of openness and trust. Define what works for your organization and commit to living these values every day.

Action Tip: Host a team workshop to collaboratively define your company’s core values and make sure everyone understands and aligns with them.

2. Foster a Feedback Culture

Feedback is essential for development, but it has to be constructive and consistent. Radical Candor, as described by Kim Scott, is one approach that encourages leaders to “care personally and challenge directly.” It’s about fostering a space where feedback can be given and received without fear of judgment, making team members feel empowered to share their ideas and improve their performance.

Action Tip: Set regular feedback sessions and encourage a two-way dialogue where team members feel comfortable sharing feedback about their work and the environment.

3. Encourage Open Communication

Creating an open and transparent communication channel within your team is crucial for trust and engagement. Leaders who share information and listen to their employees create a culture of inclusivity. Gallup reports that organizations with open communication practices experience 47% higher total returns to shareholders. Encourage regular one-on-ones and town hall meetings where employees can ask questions and discuss ideas.

Action Tip: Implement a monthly “Ask Me Anything” session where employees can raise any topic, allowing leadership to listen and respond openly.

4. Address Conflict with Care

Workplace conflict is inevitable, but how you handle it will shape your culture. Unresolved conflict can fester and affect morale, while well-managed conflict can lead to improved understanding and stronger collaboration. Use mediation techniques, encourage a win-win approach, and create a safe space where differing opinions are viewed as opportunities for growth.

Action Tip: Offer conflict resolution training for managers to help them identify the root causes of conflict and address issues proactively.

The Role of Leadership in Building Culture

As a leader, you play a critical role in shaping the culture of your team. Your actions set the tone for how values are lived out and how employees engage with one another. But creating and sustaining a thriving culture is not a one-time effort. It requires consistent commitment and continuous improvement. CIPD research highlights that organizations with strong cultures are 27% more likely to retain employees and are better positioned to adapt in times of change.

It’s not just about offering perks or creating a fun work environment—it’s about nurturing the environment where your team can flourish. Remember, culture isn’t something that’s automatically positive or negative—it’s what you make of it.

Final Thoughts

It’s easy to overlook the power of culture and engagement in the whirlwind of day-to-day operations. But taking time to focus on these areas isn’t a luxury—it’s an investment. By defining your culture, fostering feedback, and addressing conflict thoughtfully, you’re setting up your team—and your business—for success. You’ll find that when your team is truly engaged, the results speak for themselves.