Company Culture

Company Culture Secrets: What Actually Works in 2025 (From 100+ CEOs)

Company culture significantly impacts both employee satisfaction and business performance. According to a recent survey, nearly 40% of workers ranked company culture as ‘very important’, while 35% would turn down a perfect job if it didn’t feel like the right culture fit.

In fact, the consequences of poor culture are substantial. Employees who rated their company culture poorly were 24% more likely to leave within a year, whereas those feeling strongly connected to their organization’s culture were 3.7 times more likely to be engaged and 55% less likely to job hunt. Furthermore, the financial implications are clear that companies prioritizing culture have shown a cumulative return of 1,709% since 1998, compared to just 526% for the Russell index during the same period.

As we explore the culture of a company and what makes it successful in 2025, we’ll examine different types of company culture, share insights from over 100 CEOs, and provide actionable strategies to improve company culture in your organization. Considering the average American spends approximately 90,000 hours—one-third of their life at work, understanding what company culture is and how to shape it effectively has never been more crucial.

What is company culture and why it matters in 2025

Company culture encompasses the behavioral organizational norms, shared values, and collective personality that define how people work together within an organization. Think of it as the DNA of your workplace, it includes everything from formal policies and procedures to unwritten rules about how things get done. 

Beyond just being the “personality” of a company, culture encompasses ethics, values, employee work behaviors, management styles, and the overall work environment.

As we navigate 2025, culture has become increasingly pivotal in both attracting and retaining talent. A remarkable 56% of employees now value good company culture over a higher salary, highlighting how workplace priorities have evolved. Additionally, 72% of job seekers consider it extremely or very important to see details about company culture in job descriptions.

How culture shapes daily work life

Your organization’s culture profoundly influences how employees experience work on a daily basis. A strong, positive culture creates an environment where employees feel valued and have at least some control over their jobs rather than feeling powerless. This sense of autonomy leads to higher performance levels and greater job satisfaction.

In today’s workplace, culture determines:

• How team members communicate and collaborate
• Whether employees feel psychologically safe to express ideas
• The level of work-life balance and flexibility offered
• Opportunities for growth and development
• How recognition and appreciation are handled

Recent data shows that work-life balance now edges past pay as a key motivator, with 83% of workers identifying it as essential compared to 82% for compensation. This shift is especially pronounced among younger generations entering leadership positions.

The impact of culture on retention is substantial- 44% of workers report having quit a job because of a toxic workplace. Similarly, 42% would leave if their employer failed to support their career ambitions. Moreover, approximately 27% of people have left jobs because they didn’t feel comfortable expressing themselves authentically—a figure that jumped from just 16% in 2024.

When employees work in a culture that aligns with their values, they become more involved, enthusiastic, and engaged. They view their work not just as a paycheck but as something meaningful that contributes to a larger purpose. As one survey participant noted, “Human beings excel when they are happy and doing what they enjoy. And when they excel, they produce”.

Check out this blog on how to improve company culture.

The link between culture and business outcomes

The connection between company culture and business performance is both clear and compelling. In a survey of business owners, 86% believe company culture directly impacts productivity. This isn’t just perception, it’s backed by financial data.

Organizations with healthy cultures post a return to shareholders that is 60% higher than companies without strong cultures. Additionally, research shows that companies in the top quartile for cultural health deliver significantly better financial results than median companies.

How does culture drive these impressive business outcomes? Several mechanisms are at work:

• Engaged employees demonstrate higher productivity, highly engaged teams are 21% more productive than less-engaged counterparts
• Lower turnover rates reduce recruiting and training costs
• Positive workplace environments reduce absenteeism and healthcare costs
• Strong cultures foster innovation, companies with cultures that encourage innovation are 3.5 times more likely to experience above-average revenue growth
• Better customer experiences lead to improved retention and higher sales

The business case for investing in culture is undeniable. Among CEOs and CFOs worldwide, 92% reported that improved culture enhances organizational value. Moreover, nearly half indicated they would not acquire a business with a culture that didn’t align with their own.

For 2025 and beyond, organizations can no longer afford to let their cultures evolve passively or cling to outdated norms. Success requires actively shaping culture to align with strategic goals instead of allowing it to develop by default. Though cultural transformation is challenging—with only about 30% of organizational transformation efforts succeeding—the potential rewards make it well worth the effort.

The 4 major types of company culture

Most organizational culture experts recognize four primary company culture models, each with distinct characteristics that shape how companies operate and how employees experience their workplace.

Clan culture: people-first and collaborative

Clan culture resembles a family-like environment where employees function as a cohesive unit. This horizontal structure creates a workplace where team members feel deeply connected to the organization’s mission and values. Unlike hierarchical organizations, clan-cultured companies emphasize collaboration, trust, and autonomy.

The defining characteristics of clan culture include:

• Active participation and strong teamwork
• Informal, flat organizational structure
• Strong sense of belonging and loyalty
• Close-knit employee relationships
• Commitment to employee wellbeing and mentorship

Primarily found in small businesses, startups, and family-owned companies, clan culture prioritizes internal relationships over external competition. This approach allows employees to speak freely, share knowledge, and contribute beyond their formal roles. Teams operate with high levels of trust and autonomy, making decisions collectively without strict control procedures.

Research indicates that clan culture fosters high employee satisfaction, engagement and retention. Companies embracing this model often see increased motivation as team members feel valued and integrated into something meaningful beyond themselves.

Adhocracy culture: innovation and risk-taking

Adhocracy culture thrives on creativity, adaptability, and forward-thinking. This model emphasizes decentralized leadership, individual initiative, and organic decision-making without rigid procedures. Unlike bureaucratic structures, adhocracies give employees closest to the action permission to solve problems as they see fit.

In adhocracy-oriented organizations, innovation and risk-taking are celebrated rather than discouraged. Employees have freedom to question established methods, experiment with new ideas, and redirect projects without waiting for authorization. Consequently, these companies adapt quickly to changing market conditions and emerging opportunities.

Adhocracy works exceptionally well in industries requiring constant innovation, such as technology and creative sectors. Companies like Google, Pixar, and Tesla have successfully implemented this culture, leveraging its benefits to develop groundbreaking products and attract top talent.

Market culture: results-driven and competitive

Market culture has one clear objective: achieve high profit margins and outperform competitors. This results-oriented approach maintains a strong external focus on customer satisfaction and market dominance. Organizations with market culture create competitive environments that attract ambitious professionals who want to “be the best.”

In market-cultured companies, managers are both inspiring and demanding, expecting excellent performance in high-pressure situations. Success is defined by profit and market penetration, with a constant focus on productivity and efficiency.

The emphasis on performance helps teams become more productive, often meeting or exceeding targets. However, this intense competition can potentially create toxic environments leading to employee stress and burnout if not properly balanced.

Major companies like Amazon and Apple exemplify market culture, using methodologies like DMAIC (Define, Measure, Analyze, Improve, Control) to continuously refine processes and metrics. Their success demonstrates how effectively implemented market culture can drive innovation and operational excellence when properly managed.

Hierarchy culture: structure and stability

Hierarchy culture represents the most traditional workplace model, with a vertical organizational structure featuring clearly defined management layers and formal chains of command. This approach emphasizes order, rules, and predictability, with decisions flowing from top leadership down through the organization.

Organizations with hierarchical cultures typically operate with standardized procedures, formal policies, and strict guidelines. This structure provides clarity around roles, responsibilities, and decision-making authority at each level.

Hierarchy culture works particularly well in high-risk industries like oil and gas, finance, healthcare, and government, where preventing mistakes and managing failure are essential. The clearly defined structure makes hierarchies one of the most efficient types of corporate culture for certain operations.

Despite its advantages in organization and efficiency, hierarchy culture can feel stiff and inflexible to some employees. The focus on rules and procedures may limit creativity and innovation, potentially creating an impersonal environment.

Understanding these four culture types helps organizations identify their current model and determine whether it aligns with their strategic goals and industry requirements.

What top CEOs say about building strong culture

Corporate culture is molded by leadership, with CEOs wielding the most significant influence in that process. After studying insights from over 100 CEOs, one thing becomes clear: building strong company culture isn’t accidental—it requires deliberate choices, actions, and priorities that align with business objectives.

Common values shared by high-performing companies

High-performing organizations consistently emphasize certain core values that form the foundation of their success. These values aren’t merely decorative statements on office walls but living principles that guide daily operations. Gallup research reveals only two in ten employees feel strongly connected to their company’s culture. This disconnect occurs because values only stick when they’re lived, not just written down.

The most successful companies share these fundamental values:

• Transparency and trust – Creating environments where information flows freely
• People-first approach – Prioritizing employee wellbeing over short-term gains
• Continuous learning – Embedding development opportunities into the culture
• Accountability – Clear expectations with consistent follow-through

As one study published in Healthcare (Basel) demonstrated, organizations offering ongoing development opportunities saw tangible results, employees who participated in professional development were 11% more likely to remain in their jobs than those who didn’t.

On balance, companies that recognize and align employee strengths with their culture experience lower turnover rates. A 2022 study analyzing 641 participants found that employees thrive—and stay—when their work environment matches their key competencies.

How leadership behavior sets the tone

CEOs set the tone for what’s valued, what’s rewarded, and how people work together. Whether they actively shape culture or not, their influence is inevitable. Essentially, every interaction leaders have with team members becomes a model for acceptable behavior throughout the organization.

“Leadership doesn’t just lead by example; they set the example,” notes a study of high-performing organizations. In particular, CEOs who demonstrate the behaviors they expect to see in others create alignment that cascades through all levels.

Forward-thinking CEOs recognize they can’t dictate culture from a pedestal. Instead, they architect it, designing environments where autonomy, collaboration, and innovation flourish. MIT lecturer Kate Isaacs describes this as “flipping the hierarchy upside down,” creating spaces where expertise and decision-making are shared rather than concentrated at the top.

The sustainable success of cultural transformation ultimately stems from how leaders behave, not what they say. According to research in Frontiers in Psychology, distributed leadership models particularly resonate with younger employees, driving proactive behaviors through two critical factors: customized work arrangements that reflect individual strengths and the meaningfulness of work.

Why culture must be intentional, not accidental

When a group of people comes together, their habits merge into unwritten norms and rules—this is culture forming naturally. Nevertheless, without active alignment between a team’s goals and organizational values, culture develops accidentally.

The direct impact of accidental culture can be suboptimal results as teams potentially adopt practices moving in the wrong direction. For this reason, CEOs must deliberately cultivate the environment they want rather than allowing it to evolve haphazardly.

Building intentional culture requires focused effort and strategic planning. It involves designing a workplace where every process, interaction, and decision supports the organization’s overarching goals while creating a cohesive workforce.

CEOs who successfully build intentional cultures focus on three key areas:

First, they define core values that resonate deeply with every member of the organization and guide daily actions. Second, they ensure organizational strategy aligns with cultural goals through performance metrics and rewards systems. Finally, they foster inclusive, empathetic leadership styles that prioritize team growth and wellbeing.

Although changing team culture typically takes longer than anticipated—usually 18 months or more before changes permeate throughout an organization—the benefits are substantial. Companies with intentionally shaped cultures report higher engagement, innovation, and financial performance compared to those with accidental cultures.

8 company culture secrets that actually work

After studying data from hundreds of organizations, I’ve identified eight evidence-based strategies that consistently create thriving workplace cultures. These approaches go beyond surface-level perks to address the fundamental elements that shape how people experience work.

1. Lead with transparency and trust

Trust forms the bedrock of every successful company culture. Indeed, as per PwCs Trust Survey,  86% of executives report highly trusting their employees, yet only 60% of employees actually feel trusted. This trust gap undermines engagement and performance.

Creating transparent communication means openly sharing information about the company’s direction, challenges, and decisions. When leaders communicate openly, employees feel comfortable expressing ideas, admitting mistakes, and taking calculated risks. Organizations that prioritize transparency naturally foster environments where information flows freely, resulting in stronger collaboration and more confident decision-making.

2. Build a culture of recognition and appreciation

Recognition dramatically transforms workplace dynamics. Employees receiving meaningful recognition, including in kind benefits apart from compensation are 5x more likely to feel connected to their culture, 4x more likely to be engaged, and 56% less likely to search for new job opportunities.

Effective recognition goes beyond annual awards. Regular, specific acknowledgment of contributions, both large and small reinforces desired behaviors and values. 

According to McKinsey research, 67% of workers rate praise and commendation from managers as their top performance motivator, ranking it above financial incentives. For maximum impact, create multiple recognition channels, including peer-to-peer appreciation, which often resonates more deeply than top-down recognition alone.

3. Prioritize employee well-being and flexibility

Employee well-being directly impacts productivity and engagement. Companies cannot expect peak performance from team members who are struggling with burnout or work-life imbalance. A comprehensive approach to well-being encompasses physical health, mental wellness, and workplace flexibility.

Flexibility has become particularly crucial, with 81% of employees considering flexible working arrangements important and valuable. Organizations offering autonomy over when, where, and how work gets done report higher engagement levels and more positive employee experiences than those with rigid structures. Supporting work-life balance through flexible policies demonstrates that you value employees as whole people, not just for their professional contributions.

Check out how forward-thinking companies are using empathy cafes to redefine employee mental health and well-being apart from other mental health initiatives.

4. Align culture with mission and values

When organizational culture and strategy work in harmony, both business results and employee satisfaction improve. This alignment begins with clearly defined core values that guide daily decisions and behaviors throughout the company.

As management icon Jack Welch noted, “No company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it”. Effective alignment means ensuring that organizational systems—including hiring practices, performance metrics, and rewards—consistently reinforce your stated values. Otherwise, employees quickly identify the disconnect between what’s said and what’s actually valued.

5. Foster inclusion and belonging

Inclusive cultures drive both innovation and performance. Companies with greater racial and ethnic diversity are 35% more likely to outperform their competitors. Yet inclusion goes beyond demographic representation to create environments where everyone feels they belong.

True inclusion means valuing diverse perspectives, creating psychological safety for all team members, and ensuring equal opportunities for growth and advancement. Organizations excelling at inclusion report lower turnover rates, higher productivity, and stronger innovation as employees bring their authentic selves to work.

6. Invest in leadership development

Leadership capabilities directly shape cultural outcomes. The way leaders respond to challenges, communicate priorities, and interact with team members sets the tone for the entire organization.

Effective leadership development aligns with company values and focuses on both technical competencies and emotional intelligence. Leaders must model desired behaviors consistently, as their actions speak louder than written policies or mission statements. For sustainable culture change, leadership development should extend beyond executive teams to include managers at all levels who interact with employees daily.

7. Encourage innovation and autonomy

Empowering employees with appropriate decision-making authority creates environments where innovation flourishes. Research shows that 79% of autonomous employees demonstrate higher engagement and performance. Conversely, a staggering 68% of workers feel disengaged despite generally liking their jobs—often because they lack meaningful input into how they work.

Creating autonomy means establishing clear boundaries and expectations while giving people freedom within those parameters. This approach requires leaders to shift from controlling to coaching, providing guidance and support rather than micromanaging. When done effectively, this balance drives both creativity and accountability.

8. Use feedback to continuously improve

Feedback culture transforms organizations by creating environments where continuous improvement becomes the norm. Regular feedback—both giving and receiving—builds ownership and engagement, with 43% of highly engaged employees receiving feedback at least weekly compared to just 18% of disengaged workers.

Effective feedback mechanisms include regular pulse surveys, open forums, and anonymous channels for honest input. By gathering insights systematically and acting on them visibly, organizations demonstrate that employee voices matter. This creates a virtuous cycle where feedback drives improvement, which encourages more feedback, ultimately strengthening trust and performance.

Real-world company culture examples from 2025

Three standout organizations showcase how cultural principles translate into practical workplace systems that drive success. These real-world examples demonstrate that effective company culture isn’t theoretical—it’s a powerful business advantage when implemented authentically.

How Adobe empowers creativity through culture

Adobe places creativity at the core of its organizational fabric. Their culture revolves around four key values: creating the future, owning outcomes, raising standards, and maintaining authenticity.

Adobe’s commitment to “Creativity for All” empowers employees to express themselves fully and reach their potential. This philosophy extends beyond internal practices to include programs like Adobe Creative Campus, which provides free access to Adobe Express for Education in K-12 institutions.

The company’s leadership development programs, including Adobe Leader Experience, foster internal networking and professional growth opportunities. Equally important, Adobe invests in ongoing education through their Learning Fund, providing employees resources for career development.

Adobe’s cultural strength has earned significant recognition, appearing on Fortune’s World’s Most Admired Companies, Wall Street Journal’s 250 Best-Managed Companies, and Fortune’s 100 Best Companies to Work For 2024.

What makes Patagonia’s culture stand out

Patagonia’s purpose-driven culture centers on a compelling mission: “Build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis”. This mission drives every aspect of operations, creating a strong environmental brand identity.

Their cultural distinctiveness begins with hiring practices. Rather than seeking conventional credentials, Patagonia looks for “dirtbags” who love the outdoors and embrace their “Let My People Go Surfing” flexibility policy. As Dean Carter, Patagonia’s chief human resources officer explains: “It would be cruel to hire people who love to be outside and just keep them captured in these buildings all day”.

Patagonia’s commitment to work-life balance includes offering 15 different schedules for warehouse employees and guaranteed schedules three weeks in advance for retail staff. Their on-site childcare center, established in 1984, supports working parents so effectively that retention rate for mothers returning from maternity leave is 100%.

Why Capital One’s recognition system works

Capital One transformed its workplace through ONEderful, a recognition program used by 75% of associates across 145 business units. This comprehensive system allows employees to recognize each other for all types of great work while maintaining consistency across the organization.

What makes ONEderful particularly effective is its integration with tools employees already use daily. Associates can send appreciation through Outlook, Slack, or Chrome—right in their workflow—making recognition immediate rather than delayed. As their HR Director notes: “The power of recognition is magnified when it’s timely versus when you give it three weeks later”.

Capital One’s culture prioritizes storytelling around accomplishments rather than simply distributing awards. This human-centered approach has measurably impacted motivation and retention, with associates reporting that recognition “puts the organization at the same level as some of the other well-known technology companies that reward associates”.

How to improve company culture in your organization

Transforming organizational culture demands systematic effort backed by data-driven decisions. To create lasting change, you need more than good intentions—you need a methodical approach focused on measurable outcomes.

Start with a culture audit

Conducting a thorough culture audit helps establish a baseline understanding of your current workplace environment. Initially, gather data through multiple channels to ensure comprehensive insights:

• Use employee surveys and focus groups to collect honest feedback
• Analyze metrics like turnover rates, engagement scores, and customer satisfaction
• Examine leadership behaviors and management practices

Importantly, culture audits examine three critical elements: your people, your processes, and your workplace environment. Through this assessment, you’ll identify misalignments between stated values and actual practices, providing a foundation for meaningful improvement.

Involve employees in shaping the culture

Employee involvement isn’t just beneficial—it’s essential for sustainable cultural change. Organizations with high levels of employee engagement experience 21% greater profitability and when employees participate in decision-making, they develop stronger ownership of outcomes.

To effectively engage your team:

• Create cross-functional teams and host regular town hall meetings
• Implement anonymous feedback tools for candid input
• Establish a culture committee that encourages engagement from onboarding through all organizational levels

Remember that “changing culture is difficult,” and it requires buy-in from everyone. Subsequently, organizations that listen actively to their workforce are 12 times more likely to retain their talent.

Set measurable goals and track progress

Cultural transformation is an iterative process requiring regular monitoring and adjustment. To ensure lasting success:

• Create specific KPIs under three performance levels: organizational, individual, and change management
• Conduct regular pulse surveys to gage progress and identify emerging issues
• Set short-term goals alongside long-term objectives to provide quick wins that maintain momentum

After implementing changes, conduct another culture assessment to measure progress toward your desired culture profile. This ongoing evaluation helps you recognize positive outcomes, build upon successes, and adjust course as needed.

By following these structured steps—auditing your current state, involving employees in the transformation, and tracking measurable progress—you’ll create a culture that truly supports your organization’s mission and drives sustainable success.

Conclusion

Company culture stands as a defining factor in organizational success throughout 2025 and beyond. After examining the evidence, we can see that thriving workplaces don’t happen by accident—they result from deliberate leadership choices, clearly articulated values, and consistent actions aligned with those values.

The four major culture types—clan, adhocracy, market, and hierarchy—each offer distinct advantages depending on your industry and business goals. CEOs who understand these differences can strategically shape their environments rather than allowing cultures to evolve haphazardly.

Most compelling evidence shows that organizations investing in their cultures reap substantial rewards. Companies prioritizing transparent communication, recognition, employee well-being, and inclusion consistently outperform their competitors. Additionally, those fostering innovation, leadership development, and feedback mechanisms create sustainable advantages that translate directly to business outcomes.

Adobe, Patagonia, and Capital One demonstrate these principles in action. Their success stems not from superficial perks but from authentic alignment between stated values and daily practices. These organizations prove that culture isn’t just a feel-good initiative—it’s a powerful business strategy driving productivity, innovation, and retention.

Though cultural transformation takes time—typically 18 months or more—the investment pays dividends through higher engagement, lower turnover, and stronger financial performance. Starting with a thorough culture audit, involving employees throughout the process, and tracking measurable goals creates the foundation for meaningful change.

The workplace will continue evolving, but one truth remains constant: people perform at their best when they feel valued, connected to a larger purpose, and empowered to contribute meaningfully. Building such environments requires intentional effort, yet the rewards—for both individuals and organizations—make it among the most worthwhile investments any company can make.

Key Takeaways

Based on insights from 100+ CEOs, here are the essential strategies that create thriving workplace cultures in 2025:

• Culture drives bottom-line results: Companies prioritizing culture show 1,709% cumulative returns versus 526% for average performers, with 60% higher shareholder returns.

• Lead with transparency and build trust: Only 60% of employees feel trusted despite 86% of executives claiming they trust their teams—closing this gap boosts engagement dramatically.

• Make recognition frequent and meaningful: Employees receiving regular recognition are 5x more likely to feel connected to company culture and 56% less likely to job hunt.

• Prioritize flexibility and well-being: 81% of employees value flexible work arrangements, and 56% now prioritize good culture over higher salary when choosing jobs.

• Involve employees in cultural transformation: Organizations with high employee engagement experience 21% greater profitability—culture change requires buy-in from everyone, not just leadership.

• Measure and track cultural progress: Cultural transformation typically takes 18+ months, requiring systematic audits, measurable goals, and continuous feedback loops to ensure lasting change.

The evidence is clear: intentional culture-building isn’t just about employee satisfaction—it’s a strategic business advantage that drives innovation, retention, and financial performance in today’s competitive landscape.

FAQs

Q1. How does company culture impact business performance in 2025? 

Company culture significantly affects business outcomes. Organizations with strong cultures show 60% higher returns to shareholders and are 3.5 times more likely to experience above-average revenue growth. Engaged employees in positive cultures are 21% more productive, leading to better financial results and customer experiences.

Q2. What are the main types of company culture? 

There are four major types of company culture: clan (collaborative and people-first), adhocracy (innovative and risk-taking), market (results-driven and competitive), and hierarchy (structured and stable). Each type has distinct characteristics that shape how companies operate and how employees experience their workplace.

Q3. How can leaders effectively build a strong company culture? 

Leaders can build strong cultures by leading with transparency and trust, aligning culture with mission and values, fostering inclusion and belonging, investing in leadership development, and encouraging innovation and autonomy. It’s crucial to make culture-building intentional rather than accidental, as leadership behavior sets the tone for the entire organization.

Q4. What role does employee recognition play in company culture? 

Employee recognition is crucial for a positive company culture. Employees receiving meaningful recognition are 5 times more likely to feel connected to their culture, 4 times more likely to be engaged, and 56% less likely to search for new job opportunities. Regular, specific acknowledgment of contributions reinforces desired behaviors and values.

Q5. How can organizations improve their company culture? 

To improve company culture, organizations should start with a comprehensive culture audit to understand the current state. Then, involve employees in shaping the culture through cross-functional teams and feedback mechanisms. Finally, set measurable goals and track progress regularly. This process typically takes 18 months or more for lasting change.