Strategic HR Guide for SMEs: Enhancing Your Business’s Culture
03 Feb 2025

Strategic HR Guide for SMEs: Enhancing Your Business’s Culture 

Your Company culture influences everything from financial performance to customer satisfaction. 

That’s why investing in and strengthening your company culture makes strategic sense. 

In this guide, we’ll explore what company culture is, why it matters, and how you can improve it for everyone’s benefit. 

What is company culture? 

Your company culture should be something tangible, even to an outsider. 

It encompasses everything; what you do, how you do it, your systems, values, behaviours, goals, and the experience you create for both employees and customers. 

At its heart, company culture is simply how things get done in your workplace. 

Imagine this: a stranger walks into your business.

What’s their experience? 

• Are they warmly greeted by employees?
• Does the receptionist offer a smile, a drink, and a comfortable seat?

Or:

• Are they overlooked until they approach someone for assistance? 

These scenarios reflect very different company cultures.

The first conveys warmth, positivity, and approachability, while the second feels impersonal and unwelcoming.

Company culture is the social fabric of your organisation, shaping attitudes and behaviours.

It is influenced by several factors, including: 

• Communication styles.
• Decision-making processes.
• Hiring and firing approaches.
• Support for growth and development.
• Recognition of hard work and achievements.
• Why improving company culture matters

A strong company culture directly impacts performance indicators, such as:

• Financial success. 
• Employee and customer retention.
• Innovation.
• Customer satisfaction. 

When a company’s culture is thriving, it is inclusive, rewarding, and aligned with employees' values. This will foster happiness, engagement, and motivation boosting efficiency, creativity, and productivity. 

A great culture doesn’t just benefit your current team; it also strengthens your reputation and attracts top talent.  It reinforces your employer branding. 

Culture styles: Where does your business fit? 

To improve your culture, it’s important to understand where your business currently stands. Companies typically align with one or more of these eight culture styles: 

Caring – Relationship-focused and trust-driven. These workplaces are collaborative and supportive, with leaders who prioritise sincerity and teamwork. 

Purposeful – Rooted in tolerance and compassion, with employees motivated to make a positive impact. Leaders emphasise sustainability and shared values. 

Learning – Innovative, open-minded, and creative workplaces that foster exploration. Leaders encourage curiosity and forward-thinking. 

Enjoyable – Centred on fun and excitement. These workplaces are light-hearted, with leaders who promote spontaneity and humour. 

Results-focused – Driven by achievement and success. These workplaces are goal-oriented and merit-based, with leaders who emphasise performance. 

Authoritarian – Competitive and control-driven, with confident leaders who focus on dominance and structure. 

Safety-focused – Built on security, planning, and preparedness. These workplaces are predictable, risk-conscious, and led by detail-oriented leaders. 

Orderly – Structured and rule-driven, with an emphasis on respect, consistency, and shared norms. 

Many businesses blend elements from different styles, though conflicting styles (e.g., safety and learning) can create challenges. 

 

How can you improve your business’s culture 

Follow these steps to strengthen your company culture: 

Understand your current culture 
Begin by evaluating your workplace. Gather employee feedback and observe behaviours. Identify both strengths and areas that need improvement. 

Define your ideal culture 
Pinpoint the values, behaviours, and goals you want to emphasise. Consider which cultural styles align best with your business objectives. 

Create a manifesto 
Document your company’s values, goals, and expectations. Share this widely within your organisation and use it as a foundation for hiring and internal alignment. 

Implement supportive policies 
Foster employee well-being with initiatives such as: 

• Flexible working options.
• Professional development opportunities.
• Team-building activities.
• Community involvement and volunteering programmes. 

 

Reinforce positive behaviours 
Recognise and reward actions that reflect your desired culture. Celebrate achievements and ensure leadership models the cultural values you aim to instil. 

Need support in shaping your culture? 

Improving your business’s culture may feel daunting, especially if you’re addressing it formally for the first time. Whether you need guidance from the ground up or want to assess your culture before making changes, we’re here to help. 

Get in touch to start the conversation and take the first step toward a stronger company culture.